Cancel your gala. Cancel your golf outing.
Am I serious? Kinda.
Look, I love events. I enjoy attending them. I have led teams that have planned about 35 large scale galas, walks and golf outings that have raised millions. But you know the real, honest truth? Most of them are not raising enough money. "Wait," you say. "My gala raised $200,000. And it only cost us $30,000! That is a great ROI!"
Well, it sure is, Buddy. Unless....you count staff time as part of your costs. ??
I recently heard about an event where the entire development team spent 6+ months running around choosing napkin colors and finding an emcee. They estimated that 75% of four of the five person team's time (the other FTE is writing grants) was spent on the event.
Brace yourself for a little math: 75% of the 6 month salaries of a DOD and the three mid level staff lands you right around $123K. Now, including 75% of the six month costs of fringe benefits like healthcare and 401K, which are usually 20-30% of someone's salary, would bring that total to about $153K. Plus the $30K spent on hard costs like venue, food, drinks, music and speechwriting.
When you look at it this way, you have actually spent $183K on your gala. A whopping $17K profit. Doesn't feel like such a win, does it?
And I didn't even mention time spent by the bookkeeper or CEO. ??
Sometimes, we have to do events. Boards of Directors can be very attached to them. So, if we must, what can we do to improve the ROI of an event?
-Gather a volunteer committee who will help do two primary things: sell sponsorships and tickets/tables. Menus and decorations can be fun to choose, but keep the time on the most important things.
-Choose a unique format that is not the usual. One nonprofit that focuses on recycling building materials turns their warehouse into an enormous, high end food and beverage tasting event with a high ticket price point that people wear shorts and flip flops to. Pickle ball tournaments are having a moment. Themes that prompt participation (and Instagram activity) are popular.
-Do everything you can to make sponsorships attractive. Long before the event planning begins, start to lay the groundwork for large sponsorships involving leadership and your board.
An alternative? That grant writer of yours is bringing in over 2-3 times the gala's revenue. So, let's say that grant writer is bringing in $500K. And she makes $70K. I'd cancel my event, eliminating the need for event staff, hire a 2nd grant writer (or hire a grants company to support the internal grant writer) and then *this is where the sustainability is* hire an experienced major gifts officer to cultivate major donors. Have smaller, intimate dinners or other exclusive events with donors you have a real relationship with. You'll raise more at these and through those relationships, over time.
Bottom line: choosing napkins is not a revenue generating activity!
#eventplanning #nonprofitevents #fundraising #gala #golfouting
