Is Your Event Really a Fundraiser? 

Great news! Our gala raised $200,000! 
 
Bad news. It cost $500,000 to implement. But most event debriefs will not reveal that problem, because we rarely factor in labor when assessing the ROI of events. They can be the gift that keeps taking. 
 
It is the rare event that is factually a “fundraiser” when fully accounting for cost—both expended and opportunity. Enthusiastic volunteers are sometimes quick to suggest galas, golf tournaments, silent auctions and the like. What’s not to like? Everyone gets to dress up and enjoy an evening of creative catering and socializing with friends. But if the ROI is low or negative, it’s not a “fundraising” event. 

What Events Actually Do Well

That’s not to say that events are useless. In fact, there are at least three things events tend to do exceedingly well: celebrate milestones, victories, and successes; inform and educate people about the organization’s impact; and engage prospective contributors of time, talent, or treasure to increase involvement and satisfaction. Re-envisioning an event through this more realistic lens also means downplaying the transactional aspect of a gathering—“you buy a table at my event, I buy one at yours”—but freeing the planning team to be creative, inspiring, and focused.

Define The Right Audience

If you’ve been with an organization for a while, you know that there are usual suspects who would attend the opening of an envelope. They love your organization, live for in-person events, and loyally show up to all of them. Are they increasing their support as a result? Rarely, but we won’t know unless we’re honest, thoughtful, and disciplined about success measures. Ideally, an event would be a prime entry point to build passion for our cause among new stakeholders, rather than a reflexive habit that we do because we’ve always done it. 

The “We’ll Do All the Work” Myth

I’ve heard volunteers say earnestly, “don’t worry, we’ll do all the work.” Our profession’s veterans know that those intentions are noble and sincere, but it’s still often paid staff who are printing out price tags for the silent auction as the doors are opening. It’s also frequently the case that a volunteer will show up ready to go, but needs to be oriented, trained, and supervised to get the job done according to plan. Those duties usually land on paid staff. 

What Happens After the Last Guest Leaves? 

Finally, the most crucial element of events is persistently not even addressed. What is the follow-up strategy? Episodic opportunities to gather where the activity’s goals haven’t been previously articulated are lovely, but they don’t advance the organization philanthropically. Any nonprofit that doesn’t view guests as having potential to give or get financial resources may not ask the right questions to unearth new, sustainable private support.

Four Steps to Smarter Events 

Bottom line:

• Start with defining the event’s goal(s)
• Accurately track ROI using both direct and indirect costs
• Share those data, insights, and trends with your key volunteers
• Make sure you have a follow-up plan for cultivating attendees or converting them to donors

Events can’t just make people feel good. If we don’t leverage opportunities to invite investment and support, even the worthiest nonprofits can sacrifice financial health. 

There’s too much at stake for inertia to replace strategy.