Is it Worth it to Hold Your Summer Event This Year?

It’s the season! Every week, almost every day, another invitation arrives about yet another summer fundraiser. In northern Michigan, endless opportunities abound to dance, picnic, run, bike, sail, or tour, while benefiting a deserving nonprofit. Through the grapevine, we hear that attendance is down and our professional journals reference “donor fatigue.” We wonder about the economy and worry about the weather. Would we better off scheduling a series of lunch dates with major donors? Is this the summer to stop the madness?

Special events are often the primary fundraising approach for small nonprofits. While they only raise a small amount of revenue compared to a large amount of time and energy, they do have benefits.

• Increased public visibility and an opportunity to tell your story.
• “Friend-making opportunities” and a vehicle to attract and cultivate prospects.
• A mechanism to involve and motivate volunteers.
• Opportunities to thank and strengthen relations with current donors.

With the variety and flexibility of special events being limitless, they are ideal for acquiring, retaining or upgrading donors. One or two special events each year can greatly assist organizations in building a broad base of individual donors, which can provide the organization with increased annual giving (Klein 2000).

According to a 2007 study by Charity Navigator, about half of all charities use special events as a way to fundraise with special events generating 15% of all contributions to organizations. While this may not be a large percentage, it does add up to a significant amount of money.

The Charity Navigator study also found that special events are inefficient in comparison to overall fundraising activities. On average, the charities studied spent $1.33 to raise $1 in special events contributions, compared to an average overall fundraising rate of $.13 to raise $1. Only 15% of the charities that held special events were more efficient when using special events to fundraise than they were in their regular fundraising activities on the whole.

So, how do you evaluate whether to launch, continue or retire a special event? First, be strategic. This is a business decision. What is the primary objective in holding the event?

If your objective is to raise friends and cultivate potential donors, then you must design the event to capture names, build your database, and interact with individuals. You must also have opportunities to educate attendees and tell your story.

If the primary purpose is to thank donors, include opportunities during the event, to recognize, interact with and thank donors.

If it is publicity and visibility you’re seeking, the event must be unusual and newsworthy!

As you evaluate the value of special events in your fundraising program, remember that 76% of fundraising revenue comes from individual donors. Over-reliance on special events will negatively impact your fundraising program, if you sacrifice a focus on individual donors. Be sure to place a sufficient (in fact, the majority of your emphasis) on individual donors and personal contacting.