How to Plan a Fun and Profitable Fundraiser

Planning a major fundraiser like a dinner gala involves a lot of moving parts. It’s easy to get caught up in the fun stuff—the perfect venue, a mouth-watering menu, and show-stopping entertainment. Creating a memorable experience for your attendees is important; it builds loyalty and can even attract new supporters.

However, amidst all the excitement, it's crucial not to lose sight of the primary goal: raising money for your cause. A truly successful event is one that not only delights your guests but also delivers a healthy return. To achieve this, you need to manage your budget with a strategic eye, making smart choices that maximize profitability without sacrificing the event's appeal.

Set Your Financial Goals First

Before you book a single vendor, start by defining your fundraising goal. This target should encompass all potential revenue streams, including ticket sales, sponsorships, and any pre-event donations you solicit.

Your financial objective needs to be grounded in reality, drawing on data from your nonprofit’s past fundraising events. It's also a great opportunity to set a stretch goal—aiming for 5% to 20% more than last year's event can motivate your team and drive better results. A clear target provides a benchmark against which you can measure every decision.

Estimate and Scrutinize Expenses

Once your goal is set, it's time to build a detailed expense budget. List out every potential cost, including:

• Venue rental
• Food and beverages
• Decorations and prizes
• Invitations and marketing
• Speaker and entertainment fees
• Event coordination services
• Special event insurance
• Permits for raffles or sales tax

With your list in hand, critically examine each line item for opportunities to reduce or eliminate costs. For instance, if you've traditionally held your event at a luxury hotel, consider exploring new venues. A different location might offer a significant discount for the chance to host a room full of community leaders. Even if you receive services at a reduced rate, it's wise to record the full market value in your budget. This gives you a more realistic picture for planning future events where those discounts may not be available.

Secure the Right Sponsorships

Sponsors are essential to a profitable fundraiser. They not only help cover costs through direct funding or in-kind donations of goods and services, but they also elevate your nonprofit’s profile by introducing your mission to a new audience.

When seeking sponsors, focus on quality over quantity. Target well-known brands that have a natural connection to your cause. A nonprofit focused on K-12 education, for example, might find ideal partners in children’s apparel companies. Your board members can be your greatest asset here, leveraging their professional networks to connect you with potential sponsors.

A word of caution: be careful what you promise in return. Offering extensive advertising benefits could potentially lead to unrelated business income tax (UBIT) issues. Keep the focus on partnership and shared values.

Follow the 30% Rule

While you never want your event to feel "cheap," it's vital to remember that you have to spend money to make money. A long-standing guideline in the nonprofit world is that fundraising events shouldn’t cost more than 30% of their net proceeds. This rule of thumb helps ensure that your efforts translate into meaningful financial support for your mission.

Striking the right balance between creating a fantastic guest experience and maintaining profitability is the art of successful fundraising. With careful planning and strategic financial management, you can host an event that's both memorable and financially rewarding.

Let's Make Your Next Event a Success

Feeling overwhelmed by the numbers? Our team at SD Mayer & Associates is here to help. We can assist you in creating an efficient event budget and exploring new ideas for raising revenue. Contact us today to ensure your next fundraiser is your most profitable one yet.