When a nonprofit special event isn’t so special!
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As schools reopen, nonprofits are also gearing up for special events. Rest assured, another gala, benefit auction, 5K, bake sale, basket raffle, math-a-thon, mum sale, or something else is certain to be calling your name this fall. Special event staging shouldn’t be surprising, but after years of touting a better way, nonprofits still have much to learn relative to the true return on investment (ROI) of these so-called “special” events.
If there was anything for nonprofits to glean from the pandemic it should have been the vulnerability of relying on events for a major portion of revenue. Thousands of organizations had to cancel or migrate events to an online platform in 2020 and 2021. Some raised a mere portion of what they expected from a live event. Yet, most of those organizations returned to the ways of the past and went back to staging these time-consuming fundraisers.
As you’ll see, I’m not in favor of special events, unless they are necessary to build awareness and/or a donor database. In “good times” I’ve encouraged nonprofits (especially smaller ones) to take a hard look at their fundraising event schedule and consider measuring each event’s true ROI. At the very least I encourage boards to ask tough questions and evaluate each event annually. I hope they’ll find a better reason than “We’ve always staged that event and people expect it” or “It’s one of our board’s favorites.”
My primary objection to events is related to the “opportunity costs” they consume. Planning, staging, and participating in these events divert time from crucial development tasks that contribute to establishing or solidifying lasting relationships and enhancing donor engagement. Unfortunately, too many organizations or groups see them as the “quickest” way to raise funds.
So, how can you avoid the special event trap? How can you become more strategic? How can you be sure your organization’s leadership and staff aren’t lured into taking the quick hit and the perceived road of less resistance? Start by focusing on these five thought areas and remember “short-term pain for long-term gain.”
Consider Why the Event is Necessary
The “fun” of the event and idea can often take on a life of its own and boards can be the greatest offenders. Instead, an organization needs to ask questions like these: Do we have the resources? What need will be met? Why will this event be “special?” (Don’t be one of three similar events in your community!) How can we partner or connect? Who can help us elevate the impact of the event? What are the event goals? I encourage organizations I work with to utilize an event mapping tool that helps answer some of these questions and more.
Key Elements of Successful Events
I’ve worked with or attended hundreds of fundraising events over the years. As a consultant over the last ten years, I’ve identified seven key elements of successful events. They include a:
- Written mission and purpose
- Generous resource pool (volunteers, partners, participants, etc)
- Verifiable and engaged prospects
- Clearly communicated goals and objectives
- Identifiable impact
- Measurable outcomes
- Comprehensive post-event evaluation
Focus on Integrating the Event
If the pursuit of events is a given, then we must ensure seamless integration of the event into every aspect of our efforts. Focus on reinforcing mission implications and weaving other aspects of the organization into the event planning and execution. Mediocre events could be interchangeable between different organizations without impact. Be certain that the attendees are immersed in your mission during the event and that the outcome of their support is obvious. Success doesn’t stop at the event; nonprofits must be certain to integrate follow up with attendees after the final clean-up and benefit from the enormous amount of time spent in planning and execution.
Learn About Basic Sales Principles
With increased competition, inflation impacts, and more influencing prospective attendees and donors, understanding basic sales principles has never been more important. Remember the expression “features tell, benefits sell.” or “sell the sizzle and not the steak?” The same can be said for special events. Nonprofits do a good job with the who, what, when and where, but not so great with the “why?”
Remember, people buy benefits, but we only promote the features. Benefits will answer “what’s in it for me?” E.G. The benefit of attending a gala may be the opportunity to network. The benefit of attending a fundraising carnival may be taking advantage of quality family time. You get the idea.
Conduct a Quantitative Event Analysis
Finally, be certain the annual analysis of your event is quantitative and not someone’s subjective or collective opinion. Consider items like the event’s intangible impacts on image, reputation, publicity, mission, and needs awareness, plus the ability to gain new followers or donors and build the database. Never forget to add indirect expenses such as staff support, office supplies, volunteer time, and others. Another key component may be “gifts shifted” or those who gave at the event that may not give again or in another way.
In the end, special events may have an appropriate place if executed carefully and thoughtfully. However, nonprofits have challenges in raising funds and special events are a vulnerable option. Developing long-term, deep relationships with donors and sponsors who can come to the table at a moment’s notice is the most reliable source of funds.
David J. Fry, MPS,CDT is Founder/CEO of Effective Advancement Strategies in Greensburg and author of Build a Nonprofit Castle. He consults with nonprofits throughout Indiana, and may be contacted at strategies@etczone.com