FIRST - Spend time on the right things
Most organizations don't come close to raising what they could through their events because they spend too much time on the wrong things. While it's fun to pick out linens, taste the meal choices and make pretty center pieces, these things have little to do with achieving the main goal of a fundraising event, which is to maximize net income. I think there are two reasons staff people spend too much time on these things. First, they lack a clear understanding of strategic relationship cultivation, and second, they avoid doing the thing that is uncomfortable.
SECOND - Map all the ways to generate revenue
The least effective way to raise money through your event is through attendance. If all your revenue is tied to attendance, then that means you have to have a lot of people come to the event and you have to charge a lot of money. What if there is a snow storm on the night of the event? This strategy causes a lot of stress for everyone.
The most effective way to raise money through your event is through event sponsorships that offer sponsors an opportunity to promote their company. The amount you can secure from sponsors will depend on many factors, including history of the event, usual attendance, and the number and kind of promotion strategies you use (e.g., online, newspaper articles, invitations, flyers, partner organizations, etc.). You will receive sponsor donations before the event, so even in the event attendance is less than you planned, you have already gotten money in the door.
The sponsor amount is not tied to expenses. Many small organizations feel that they can only ask sponsors to pay for specific expenses (e.g., the cost of the meal). The sponsorship amount is whatever someone is willing to donate to you and usually depends on what you offer as far as recognition and how generous they are feeling.
There are several other strategies in between attendance (day of event) and sponsorships (before event). Silent auctions are something that event attendees are used to and also enjoy, because they feel that they are making a contribution, but they also get something in return. Even a silent auction of minimally priced items can result in thousands of dollars. Depending on who the attendees are (I'll talk about that next), a live auction of high-value items (vacation packages, suites at professional sporting events) and/or straight financial donations can result in thousands more. If your organization's story is solid and compelling, and your priorities clear, this is a great way to inspire your attendees to give even more. Don't leave things to chance though. Start with a gross revenue goal for the event as well as a net income goal - and stick with it. For a goal of $38,000 gross, it would be appropriate to budget $8,000 for expenses (no more though). It would be appropriate to budget $10,000 in sponsor dollars, maybe $8,000 for the silent auction, and another $6,000 for the live auction conservatively. That leaves $12,000 to be raised through attendance, and at $75 per ticket (reasonable price), you will need 160 people to purchase tickets prior to the event. If that attendance figure is too scary, then you will need to raise more more money in the other categories.
THIRD - Start cultivating relationships
Once you have this mapped out, it's time to make a list of all the people who are your prospects in each of these categories. Now it's a matter of filling in the blanks - but not by yourself. As I have said before, the job of the fund development director or event planner is NOT TO RAISE THE MONEY. His or her job is to create and drive the strategy, and engage as many stakeholders as possible in implementing the strategy (e.g., board members, other staff members, key volunteers and other donors).
Let's start with sponsors. If this is your first event, begin by making a list of your key supporters, donors, volunteers and vendors. Simply reach out and let them know you are doing an event and are wondering if they would like to be involved as a sponsor. They will ask for information on the sponsor levels, and then you will follow up until you get a YES or NO. If this isn't your first event, you will first go back to past sponsors and ask them to consider renewing their sponsorship at the same or higher level. Be open to feedback and be creative about what you're willing to offer them as far as recognition and exposure.
Gather a committee of 4-6 committed volunteers, including board members to take care of the silent auction. Your board members should be willing to reach into their networks to recruit sponsors and also silent auction items. You might also consider doing a mailing to area businesses; this seems to get good results too because offering gift cards is a way for those businesses to get new people in their doors.
The attendance list is actually one of the most important strategies. Typically, small organizations just send out invitations to their usual mailing list without thinking about who they want to attend the event. If the goal of the event is truly to raise as much money as possible, then you want to focus on people who have the capacity to donate a lot of money. This can be touchy though, because in the past you may have invited people who really couldn't afford to donate much. In this case, if there might be hard feelings because you are changing the strategy for the event, you may want to create another event that is more about celebrating and is more financially accessible. For this event, you wouldn't want to have the pressure of raising money.
Spend time collecting materials from other successful events in the community to see who is sponsoring what organizations, and if their mission is similar to yours, consider reaching out to them and inviting them to your event or a tour. Brainstorm your ideal attendance, and BE BRAVE and reach out to these folks to share your story and let them know you will be sending them an invitation. Be sure to reach out to them first though, otherwise, your invitation will end up in the trash. It's all about relationships.
Ask your board members to each contribute 10 new people to the invitation list that they will ask to consider coming to the event. You will need to provide your board members with materials and scripts and coaching to do this outreach. Do not expect them to follow through without the support and encouragement they need.
As always, I love to hear back from people to see how my articles have had an impact. Good luck on your next fundraising event!
Deb
P.S. My latest book The Secret to Fundraising; It's NOT About Asking For Money is all about strategic relationship cultivation. Click here to view it on Amazon.com.
