Event fixation

It is understandable that organisations that are specifically skilled at putting together performances, of whatever genre, are drawn like a moth to the flame of fundraising by events. For organisations large and small, events can spread the word, provide enjoyable occasions with which the cause is then associated, serve as a very soft ‘ask’ and achieve initial engagement with new supporters. If these are cultivated properly they have the potential to develop into future committed cash donors.

Very big charities, with national networks of hundreds of support groups and thousands of supporters who have thousands of friends, can of course play the ‘numbers game’ – the biggest coffee mornings ever, pink ribbons across the country. Such events can generate a massive number of modest donations and a really valuable yield. Almost more importantly, especially if the actual cost ratio of the exercise is not that impressive, the event can deliver huge benefits in terms of awareness and access to services, and campaigning benefits in promoting the cause. [[If your main aim is to raise funds, then ruthless project planning and budgeting are essential]]

The key thing is to be clear on the aims of your events. If you identify and agree that your aim is cultivating supporters rather that raising mega-funds on the night, your event is far more likely to be successful, raise morale and put you in a better position to ask directly for money later. If your main aim is to raise funds, then ruthless project planning and budgeting are essential.

A few pointers

The following may be helpful if you are planning to mount a major event or would like to provide some guidance (requirements) for supporters who want to help in this way.
• No ‘comps’ or credit – in God we trust; everyone else pays cash.
• Find a supporter to sponsor the place for any guests of honour – perhaps placing the guest of honour at the sponsor’s table.
• Plan for success, not failure. Give yourself plenty of lead-time. Research the proposed date: could there be a World Cup Final that day? Is it a major festival for a relevant faith? Is it election week?
• Set a ‘drop-dead-date’ by which sales have reached break-even point or the event is cancelled. For example, if planning starts in July 2008 for a May Ball in 2009, then sales by December 15, 2008 must be at breakeven point or the Ball is off.
• Create a Business Plan including the following essential items:
- objectives – what are you trying to achieve
- income and expenditure – both a budget and a simple account for reporting on the event
- proposed marketing
- paid and voluntary staff, their roles and expectations
- legal requirements and other considerations.
• Auctions – the guests and their willingness and ability to bid are far more important than the items being auctioned.
• On-the-night raffles – good sales techniques are far more important than the prizes.
• Cost-effective event sponsorship – don’t let a major sponsor claw back more in terms of freebies and expensive special requirements than their sponsorship is worth.

The downside

Many charities, or at least their supporters, succumb to the fatal attraction of fundraising events. Why ‘fatal’? Sadly, all too often, 95% of their energies are expended in running the event, and 5% in selling the tickets and controlling costs. How often have we heard the lament, “If only we’d sold another 100 tickets (just ten tables of ten) we’d have really done well”? It is amazing just how much time, energy and even investment people are willing to commit. One must sometimes ponder on their motivations.

It is not easy to sell tickets for £250, but if you can sell 500, the turnover would be £125,000. However, it’s easy to feel you should give complimentary tickets to trustees and organisers and their partners, and to businesses that have sponsored the event. Seventy complimentary tickets would knock £17,500 off the turnover. Catering at a top hotel at £120 a head including all drinks is not unreasonable (whether suitable or not is another matter). The main attraction: a world stage statesman, whose fee of £80,000 has been picked up by a supporter. Great party! Now let’s do the sums: £125,000 potential turnover, less £60,000 catering, comps £17,500, miscellaneous expenses £2,500: net proceeds to charity £45,000. But charitable gift to fund the speaker was £80,000 – oops!

Beware the offer you can’t refuse. A concert event presented for no fee by the musically talented children of the Chair of Trustees will have limited commercial potential. If you are a charity that runs a performance venue, then it’s great if you can do very cost-effective performances with popular performers, genuinely giving their services because it is a fundraiser. However, the venue will still have its on costs and you cannot expect the modestly paid venue staff to work for nothing because it’s a charity do. Perhaps the best reason for events is that everyone likes a good party – they are a great way of saying thank you!