How to replace your event-based fundraising revenue with major gifts

I work with non-profit boards to advise on best fundraising practices, I also work with a lot of fundraisers who report to a non-profit board. And I have never met a board where at least one member did not suggest running some sort of a fundraising event to raise money. Usually, the smaller the organization, the more attached to fundraising events the board, and sometimes the staff. If you are trying to figure out how to replace the revenue from your cancelled fundraising events and your board is pressuring you to go virtual, here are a few tips:

•  Have an honest discussion with fundraising staff and the board:

Many non-profits are deeply rooted in their communities and revel in the opportunity to bring people together. There will always be a place for community events, and they have many merits. But we also must be honest – they are not the most effective way to raise funds. It is important to separate the desire to bring people together with the need to raise funds. Additionally, giving at fundraising events is transactional, it is partly why many board members (and fundraisers) would rather invite someone to an event than ask them for a specific gift. It is sometimes easier to focus on an event because it feels more tangible and avoids the need to have a strong case for support. Transactional giving rarely leads to long-term, loyal support that culminates with major gifts and bequests.

• Do the math:

Fundraising events seem appealing and the totals can be significant, but sometimes further investigation is needed to identify how much money is netted after all expenses are paid, and staff time is considered. I would also analyze where the funds are coming from: sponsorship, ticket sales, silent auction, or donations. In my experience, ticket sales barely cover expenses and the real revenue usually comes from sponsorship and donors bidding on silent auction or donating.

•  Analyze the donors and attendees:

The more data you have on who has been attending your events and who is contributing, the better. It could be the case that a fundraising gala that generates $100,000 is really focused around 5 or 10 individuals who do most of the bidding, donating and sponsorship. If this is the case, engaging this group individually may result in similar funds raised without having to organize an event. You should also define what a major gift is for your organization. It may be $1,000 or $100,000. Understanding the threshold and how many of your attendees and donors have the capacity to give at the level will give you an idea of how much money you can raise differently. If you are not sure how to calculate the major gift level for your organization, book a 30-minute free consultation with me and I will teach you the basics.

• Take inventory of staff time spent and expertise in major gifts:

One of the main points of frustration for fundraisers is spending time on selling event tickets or sponsorship when they could be spending time with major gift donors. If you have staff who has the skills and knowledge to work on major gifts, focus their efforts on it. The amount of time they are spending on supporting a fundraising event is likely more than they would need to work on one or two major gifts. If you have staff with expertise in running events, then consider diversifying their skill set to include working with major donors.

• Dedicate the next 12-18 months to engaging with major gift donors 1:1

COVID19 has made it difficult to plan for in-person fundraising events. Your options are to create virtual fundraising events or develop new fundraising programs. There are virtual fundraising events opportunities, such as third-party fundraisers but even this is not a long-term solution. Virtual fundraising galas can be successful, but they are likely to miss one of the most important aspects of fundraising events – the impromptu networking, the strategic conversations and introductions that can lead to much greater fundraising results later. Developing a major gifts program will pay off long-term. Now is the time to reinvent and diversify your fundraising efforts beyond events.

I am sure there will be lots of galas, golf-tournaments, and walk-a-thons in our future as fundraisers, and they can be even more successful when combined with a strong major gift program.