How to Organize a Charity Gala Event

How to Organize a Charity Gala Event

Bryce Sanders, President

Perceptive Business Solutions Inc.

Many nonprofit organizations rely on event-based fundraising for a portion of their operating income.? Galas are expensive to organize and require lots of staff time, but they can give the organization a large amount of money, literally the next day.? How do you organize an event to maximize the revenue to the organization?

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Before looking at how it is done, it is useful to distinguish between two types of activity:? Fund raising and friend raising:

·???????? Fund raising.? The object is to make money that night.? You want to maximize revenue.

·???????? Friend raising.? The objective is to raise awareness of the organization and it’s mission.? Attendees will be approached 1:1 later on for a very large gift.

Let us assume the objective is fundraising.? What are the major revenue centers of the event.

1.????? Sponsorship.? This is tied into ticket sales, but the numbers are much larger.? There are tiers at different price points.? Sponsors get a package including their name on event signage, ad space in the event program and a block of tickets to the event.? You have seen corporate tables at gala events.

2.????? Ticket sales.? A date is set.? Several weeks to months in advance, you send a “save the date” postcard to your membership plus people who attended last year’s gala.? There are usually three ways people can support the organization:? They can buy a general admission ticket.? They can buy a “patron” ticket at a slightly higher price.? Patrons are listed by name in the program.? There is also a line for monetary contributions:? “I can’t attend, but here is a check…”? On the non-profit circuit, if you ask friends to support your favorite cause and they come through, you should also be supporting their cause when the solicitation arrives.? Years ago, the standard was “if you cannot attend, the donation should be equivalent to the price for one ticket.”? Ideally, committee members handwrite notes on the invitations, encouraging their friends to attend.

3.????? The pre-party.? Years ago, people would meet at someone’s house for cocktails and canapes before heading to the gala.? Getting this invitation was often an incentive for a board member’s friends to buy tickets.? Today, the organization might have a one-hour onsite reception with drinks and canapes that costs an additional amount.? You proceed from the pre-party into the main event cocktail party.

4.????? The after party.? Tickets to some galas can cost a thousand dollars or more.? How do you attract the next generation?? Some organizations segment the coffee and dessert part of the evening as a separate event.? Gala attendees paying full price attend, along with other people paying a lower ticket price, arriving when dessert is available, perhaps 10:00 PM.

5.????? Ads in the event program.? Most charity galas have a program book.? This includes practical content like the agenda for the event, along with a listing of the live and silent auction items.? There are also pages of ads, often congratulating the organization or the honoree. Some ads come as part of the sponsorship package.? Others are purchased.? The options are usually full, half and quarter pages.? The premium ad spots are the inside front cover, back cover and inside back cover.? There are often business card ads, sold for a nominal amount.

6.????? Raffle tickets.? There are usually one or two baskets on display.? Someone stands near it and sells raffle tickets.? Volunteers circulate during the cocktail hour selling tickets.? These might be $10, $25 each or more.

7.????? Live auction.? There is often a select of eight items (or less) sold by an auctioneer during the event.? These are big ticket items.? Foreign trips or the use of someone’s vacation property sell well.? Jewelry and artwork are less popular because tastes are subjective.? Attendees are assigned numbers or their programs or a bidding paddle.

8.????? Silent auction.? These are desirable items, but not high enough profile to get into the live auction.? Restaurants might donate a gift certificate or dinner for two.? Several might be grouped together as one silent auction item.? Years ago, bidding was done via pen, paper and clipboard.? Today, bidding is often via a smartphone app.? This adds the advantage people who are not in attendance can still bid, if the silent auction is available on the charity’s website.

9.????? Paddle raise.? Many people want to help support the organization’s mission, but only a few people are high bids in the live auction.? The paddle raise is a form of pledging, payable immediately.? The head of the organization gets everyone’s attention during the live auction.? They announce a project, complete with price tag.? They ask for contributions at four descending levels.? People raise their paddles.? They are counted and thanked.? This can raise a lot of money as people see who is giving and want to be included.

10.? The bottle pull.? This is a newer idea. The organization acquits about 100 bottles of wine.? This includes some outstanding bottles along with everyday wine.? Tickets might cost $25 and allow you to draw a numbered cork from a basket.? The number corresponds to a number on a bag containing a bottle.? You collect your bottle before you head home.

11.? Selling centerpieces.? Years ago, people walked off with table centerpieces.? Today, many organizations include a price tag on the centerpiece.? If you want to buy it, then it is yours.

As you have noticed, 11 different segments of the gala each represent a profit center.? You need to keep an eye on your expenses, but your organization can raise a significant amount of money for your cause.

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Bryce Sanders is president of Perceptive Business Solutions Inc.? He provides HNW client acquisition training for the financial services industry.? His book, “Captivating the Wealthy Investor” is available on Amazon.

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