Event Fundraising

If there is an area where money is most often lost, it is in event fundraising.  Big dreamers (visionaries) go into fund raising events expecting phenomenal, often unrealistic, results that will provide funds that are already allocated.  When the event does not produce the expected results, and often ends up in the red, it causes disappointment and a scrambling to right the ship.

So how do you choose an event that is right for your ministry?  Here’s a checklist that you can use as you evaluate proposed events at your ministry.

1.  Reported track record
How has this event worked at your ministry or at other ministries in the past?  A good idea is only good if it works in the real world.  It is easy to get sidetracked by illusions of grandeur, so when someone comes up with a fundraising event idea, make them check it out and report back about its track record.

2.  References
The next level of research comes in talking to other ministries who have held this kind of event.  If you are satisfied with the reported results from #1 above, then go on to this step.   Whoever brings this idea to the table must find out who else has done this event and get those references to you.

3.  Manpower
Events usually require a high degree of manpower to execute.  Even small events can be that way, so you need to chart out in detail what it will cost you in personnel. I am not saying that you should judge an event’s worthiness based on manpower requirements alone.  Some events that demand a lot of manpower are right for you.  Others that use little manpower may be rejected.

4.  Cost
A detailed budget must be written before you go any further.  You can't say, "I hear it will cost $20,000-$30,000."  Obviously, you're pulling a figure out of the air.  There's a tendency to skip over cost and look at all the potential income, insisting that the event will be easily paid for with all the money you'll be raising.

5.  Realistic income projections, probable return on investment, and net income
What have other ministries raised in an event like this?  What have they spent to raise this money?  If you've done the event yourself in the past, then you know what you'll probably make on it. Once you have the expense and income, you can figure the probable return on investment (ROI). Be conservative.  Events take a lot of energy and you want to make them count significantly.

6.  Risk
The key is to decline events that will severely handicap you if they fail.  So, you need to ask yourself the question, "What's the worst that could happen?"  If you are satisfied with taking that risk, based on the probability of success, then go for it.

7.  Legal and tax implications
Some events are dangerous to do from an IRS standpoint.  You need to consult your attorneys to protect yourself.  Unrelated business income tax is a tricky area, and a non-profit tax attorney will help you navigate through this.

From The Complete System for Ministry Fundraising & Development, by Jon Fugler and Ron Johnston.
The System provides details on three winning events you can use at your ministry.