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Table of Contents

Introduction - A Cautionary Tale

 1 Ethics and Special Event Fundraising
 2 More than Money - What Can You Gain from Special Events?
 3 What Makes Special Events Winners or Losers?
 4 What are the Different Types of Events?
 5 Selection of Ideas - Winners You Can Use and Losers to Watch Out For
 6 Getting (Almost) Everything Donated to Reduce Your Costs to Nearly Zero
 7 How to Guarantee Income Before You Sell Your First Ticket
 8 Nine Ways a Souvenir Programme Increases Effectiveness
 9 Challenge Grants Can Add an Element of Fun
10 Hidden Gold - Extra Income After Events and Raffles End
11 Auctions Encourage Top Donors to Give the Limit
12 Getting Bigger Bucks from Any Crowd
13 How to Get Musicians and Celebrities to Give Their Time and be Glad They Did
14 How to Get Enough Good Volunteers
15 Secrets of Scheduling Time for Maximum Effectiveness
16 The Mathematics of Money at an Event - Avoiding Surprises
17 What's Deductible? Revenue Canada and Other Legal Matters
18 Avoid One Shot Ideas
19 The Event Ability Quiz
20 Resource Guide to Organizations and Publications
21 How Could This Book Be Better?

About the Author

Introduction

A Cautionary Tale

In a disaster that has now passed into fundraising legend, a Boston-based group snared what seemed like an extraordinary opportunity. Reggae musicians Bob Marley and the Wailers would play free at a benefit.

They made careful plans. About 400 volunteers toiled for many weeks to organize the event. On the big day, 13,000 people spent seven hours in the summer sun enjoying a star-studded cast.

Unfortunately, there were some unanticipated costs. They had to pay return air fare from Jamaica for Marley, his band, and a backup crew complete with cook. There were hotel rooms for the entourage, tons of equipment to rent, and the cost of the hail.

The net take for the evening was a stupendous $50,000 — in the red.

You can lose big money in the best of causes. You can also make big profits. How? Simply cut costs and maximize revenue.

If that sounds too simplistic, this handbook will spell out some of the methods for you.

Is this book for you?

This is a self-help handbook designed to guide the beginner. Experts, too, will discover new ideas and rediscover basic principles.

It will help with difficult decisions. What kind of event should you hold? How can you maximize the returns? What human resources are needed?

The goal of this book is to help Canada's voluntary organizations expand their share of public support and funds, through special events.

Special events are probably the most widely used technique to raise money, attract publicity and educate the public.

All kinds of non-profit organizations use special events. With minor modifications, they fit large and small, urban and rural. They work for registered charities and for unregistered non- profit advocacy groups. Almost identical ideas raise money for francophones, anglophones and every other ethnic group. Adaptions customize methods for groups with wealthy patrons, or for low-income self-help organizations.

Highly paid professional event managers can be. hired to run them. More often, volunteers make it all happen.

Events can raise a million dollars “in just one night.” Of course it really takes months of planning behind the scenes.

At the top end, Canadians paid $1,500 per person to attend a gala birthday party and support a political party. At the other extreme, organizations charge no admission and raise less than a hundred dollars by passing a hat. In between are auctions, theatre nights, bingos, casinos, film nights and many more variations on the theme.

They can and do go wrong, wasting hours of work, losing money, and embarrassing the organizers. The opportunities for difficulty are plentiful. Concerts, for example, frequently lose money. One celebrated Canadian singer/actor had to apply for welfare after spending all his own money organizing a benefit concert for native peoples. Despite free performances from Dinah Christie, the Parachute Club and other well known artists, the event didn't even break even.

Several large and well organized charities have also had serious difficulties while raising money by raffling off a house. One group lost over a half million dollars this way.

Even when they do make money, groups often complain that the financial returns simply do not justify the volunteer hours consumed.

There are many success stories too, of course. This book will document some of the techniques that reduce the labour, increase the income and remove the dangerous uncertainties.

This book is a unique Canadian look at the subject. While fundraisers have published some material in the United States, it is of limited value here. There are substantial market differences. Tax regulations governing ticket sales and donations are completely different. Little of the American material is available to most people, in any case.

This book doesn't say everything there is to say about special event fundraising. That would take an encyclopedia. Or two. It does cover the most important points, in a format that's quick and easy to read.

Thanks to ..

Mary Hancock, an Associate at Ken Wyman and Associates. Her hours of research produced valuable details on effective events all across Canada.

Alexandra Montgomery, a student in York University's Master of Volunteer Administration programme, who volunteered to research the material that launched this book.

Lyn McDonell, an Associate at Ken Wyman and Associates. Lyn contributed substantial material for this volume - particularly on volunteers and on time management.

Nancy White, the singer/songwriter, performs at so many benefits that she has become an expert on how to do them. She contributes her wisdom in the section on musicians.

Bany Baker of Easter Seals, who suggested the fundraising formulas and gave me permission to print them in the chapter on The Mathematics of Raising Money at an Event. Barry is one of the top Canadian experts.

And many others, including Fred Gardiner for graphics and for keeping the office managed so I had time to write. Marta Valencia for typing parts of this (but any errors you find are mine, not hers). Don McRae of Secretary of State for ideas, encouragement and patience. The Canadian Centre for Philanthropy, particularly Laura Oda, the Director of Training and Development, who arranged a national seminar tour on special events that put me in touch with many important people, and Rose van Rotterdam, the Manager of the Resource Centre, who gathered information and quickly answered the oddest questions. Leueen MacFarlane, who collaborated on ideas and provided moral support. Greg Bums, Director of Recreation for the City of Cambridge, Ontario, who has an excellent thesis full of many good ideas that couldn't be fitted in here. And literally hundreds of other people who contributed ideas, whether I was interviewing them, consulting with their organizations or leading a seminar.

Thanks to you all!

The ethical considerations of events deserve special consideration. Depending on the group, these can be complex. Don't be overwhelmed by the long list that follows. It is meant to identify the issues, and offer solutions.

First of all, the money raised must actually be spent for the non-profit group's purposes. The public is increasingly suspicious that fake charities are raising money from unsuspecting donors, and use the money for personal gain. There have been several cases of abuse of the public. The worst of these involved telephone sales of tickets to a show supposedly benefiting disabled children. Apparently the show was oversold, few disabled children saw it, and the non-profit group was misrepresented by salespeople who were paid commissions.

Responsible non-profit groups will have to counteract this understandable hardening of the heart.

It is also essential that fundraising costs be kept to a minimum. Special events can be costly operations. It behooves us all to keep expenses as low as possible. Laws have been passed in parts of the United States that set maximum fundraising expenses at 10% to 15% of the money raised. Similar legislation is being discussed in Canada. This extremely low limit can be hard to achieve. The reaction is understandable, however, given a few highly publicized cases where overhead expenses consumed 70% or more of all money donated.

Fundraisers must also be careful not to give special treatment to suppliers. If, for example, a job is given to a Board member's printing firm without getting competitive prices, others may object. Exercise extra caution when dealing with suppliers who are not at an arm's-length arrangement. Beware of conflicts of interest. Avoid finders' fees, kick-backs or incentives from suppliers. In extreme cases, people flying on non-profit business have been criticized for using accumulated frequent flyer points for their own benefit, instead of the non-profit's.

Community standards must also be respected. Strip-athons, and bachelor auctions may sound like fun, but they can hurt an organization's image. Avoid anything that smacks of sexism, racism or age-ism.

Eating contests, pie-throwing and similar activities are also becoming less acceptable. As the public becomes more conscious of hunger in Canada and around the world, food wastage and conspicuous over-consumption become moral issues.

Alcohol is another problem area. For many religious groups, it is simply prohibited. For others, religious or not, only moderate drinking is acceptable.

This goes beyond ethics, too. Several lawsuits have also demonstrated that the person pouring the drinks is responsible if a drunk driver is hurt or hurts someone else. Non-profit groups that serve alcohol at events must pay heed. Drinking contests are not a good idea. Raffles for alcohol are now illegal in many areas. When serving alcohol, the current trend is to include no more than one free drink as part of the price of admission to an event and that is usually only done at dinners. A cash bar is provided for those who want to drink more.

Smoking is also increasingly an issue. Non-smokers feel that 'clean air' areas should be provided at all events. If that isn't possible, it may be preferable to ban smoking entirely.

Gambling presents another contentious debate. Again, many religions prohibit it. People also criticize lotteries and bingos as a tax on the poor. While people of every income level do participate in these activities, there is a disproportionate representation from the people who can afford it least. Consider carefully before involving your non-profit group in any gambling activities. This includes casinos, raffles, bingos, 50-50 draws, lotteries, Nevadas and similar games of chance. Double-check all local, provincial and federal laws on the subject.

Accessibility is important, too. This extends far beyond groups dealing with people who have special needs. Non-profit groups have a responsibility to lead social change. In the arts, religion, education and any community building, sensitivity to these issues has earned groups high praise.

Inspect any premises you may use for an event to make sure it is wheelchair accessible, from ramps to special washrooms. Speakers and entertainers should be interpreted into sign language for people with hearing impairments. Offering child care can make an event more accessible for single parents. In some cases, you may need to arrange special transportation, too. Some people have special dietary needs. Offer to make arrangements on request for those who require special food because of health, religion or other reasons. Most cooks can accommodate the arrangements if given reasonable notice.

Multi-cultural issues must also be addressed. Should you provide English-French bilingual materials? Perhaps other languages should be included, such as Ojibway or Cree, Vietnamese, Italian, or Ukrainian, to name just a few of Canada's largest ethnic populations. Be sensitive to inter-faith issues, too. When saying grace, invoking the blessing of Jesus can offend Jews, Moslems, Sikhs, Hindus and many others. Similarly, referring to God as “He” will anger those battling sexism. Avoid scheduling events during major holidays, for example. During the Islamic fast of Ramadan or the Jewish feast of Passover, meals can become more complex. English Canada sometimes forgets that Quebec offices are closed for St. Jean-Baptiste.

Boycotts present yet another problem. Many groups do not want to use products from repressive countries, strike-bound companies, or businesses targeted in campaigns. For example, one Canadian brewery is partially owned by South African interests. Some university campuses and union halls forbid the sale of any of their brands. Others are concerned about California grapes, toxic chemical dumpers, and products made in countries like Russia, Chile, or South Africa, to name a few.

Corporate co-sponsorships are also a problem. Disabled people's groups, for example, often feel angry at drug companies that charge high prices and insurance companies that are slow to pay premiums. Environmental groups are concerned about resource extraction companies and polluters. Feminist groups, Native peoples, people on both sides of the abortion issue and many others have strong grievances against specific businesses. Often, these antipathies cross over from the business itself to include those who own them, invest in them, or work there. Throughout history, there have been people who hate the rich. Be careful of the company you keep.

Charges of elitism are a thorn for those planning high-priced special events. Many people argue that expensive admission charges, upper-class entertainment styles and special privileges for those who can give more money are all inappropriate for a non-profit group. This sets up, they say, a two-class system of benevolent givers and beholden receivers, in the worst traditions of paternalistic charity. Others respond that the purpose of a fundraising event is to make as much money as possible, not to provide a party as a public service.

Although this situation crops up most often in social service and health organizations, it also arises in arts and sports groups, and political parties from the New Democrats to the Progressive Conservatives. There are few solutions. Sometimes it helps to offer a sliding scale of admission fees, with discounts for seniors, unemployed, disabled, or students. Ultimately, a group must decide: will the event be open to all, or will it cater to the wishes of those who can give the most?

If those who have money are persona non grata, should you raise money from the poor? Many groups are equally vehement that the people they are helping can't afford to support the group financially. They often refuse to ask members / clients / patients / service-users to donate or buy a ticket to an event. This, too, can be a kind of paternalism. In many cases, poor people have shown that they not only will contribute, they take pride in doing so. This participation helps transform a non-profit group from an alienating bureaucracy into a participatory self-help tool.

What's more, studies by The Canadian Centre for Philanthropy show that poor people are extremely generous. They give a substantially larger portion of their income to non-profit groups than the rich do. While the availability of services should never depend on anyone's donations, it is reasonable to ask if they would like to join in the efforts. Avoid asking anyone who may be hurt by a public disclosure of their connection, of course.

Finally, non-profits must respect each other. Most groups are friendly and open about sharing information with other non-profits. This is as it should be. A few groups, however, have tried to steal others' fundraising ideas. That hurts everyone. While there aren't many, if any, truly original fundraising events, it is dangerous to copy too closely. New techniques reported in the media quickly become trends as dozens of groups pick them up. Using the same idea too often can render it totally unproductive for everyone.

All of these factors must be taken into account in choosing the right special event. It can seem daunting to deal with them all, yet the public expects higher standards of morality from charities and non-profit groups than from anyone else. Be sure you live up to a reasonable standard of ethics.

Good fundraising must provide an opportunity to gain more than just funds. In fact, if that's all it raises, it may not truly be a success in the long-term.

The money may finance important work. All too soon, though, the income is exhausted and more is needed. The needs are so endless, and the available funds are so limited.

Fortunately, events can produce more than just money.

They also communicate image and information about your organization and its projects to the public. These are called “warm fuzzies”. They're intangible, but very real. If this is done well, it makes it easier to raise money again the next time. Warm fuzzies are more than Public Relations. The list below will show you some of the possibilities.

Too often, however, warm fuzzies are used as an excuse. After an event that doesn't raise much money, the organizers might console themselves and try to mollify the Board by pointing out all the warm fuzzy results. They may be over-estimating the reality.

Warm fuzzies aren't an accidental by-product. You must plan on developing them from the beginning.

It's also easy to measure the results.

You may have shown your new slide show about your projects, for example. Did people learn anything new? Were you preaching to the converted?

Try a simple before-and-after test. Decide 5 or 10 points you want people to know. Before the show begins, ask them to fill in a 60-second multiple choice quiz. Afterwards, have them do the same quiz again.

Did they score high marks before they even saw the show? Then it's too simplistic for them. Have the scores improved? You’ve got a winner! Did the scores go downhill? Yes, it really happens. That means you’ve confused them.

Here's another common misconception about warm fuzzies: overrating media coverage. You may have had your group's name in the media, but will people remember it? Was the name linked to positive values that enhance your image, or clarify your mission? Was it in media that your most important donors respect? Don't measure your media exposure in column-inches or seconds of air time alone. Quality is more important than quantity.

Even more important than warm fuzzies is the enhanced ability to raise more money in the long run. Call this “hot flashes”.

An event is worth more than the money it raises if it makes it easier to raise still more. For example, will the people who participated do so again? Did you get their names and addresses? Do you have a plan in place to contact them again soon?

After an event that's done right, the donors and even the volunteers may feel energized. They may look forward to the next event, instead of dreading it. The organizers have learned new skills, made new contacts, and feel rewarded.

Your human resources should feel invested, not spent.

Here is a sampling of possibilities in three categories:

Cold Cash (Once you spend it, it's gone!)

• cash
• cheques
• money-orders
• credit card donations
• in-kind donations of goods and services
• post-dated donations
• pledges

Warm Fuzzies (The good feelings that open doors tomorrow.)

• publicity
• image
• contact with people
• credibility
• education
• motivation
• increased commitment
• good community relations

Hot Flashes (Enhanced ability to raise more in the long run.)

• 'repeat-ability' of good ideas
• leadership training
• new volunteers
• re-invigorated volunteers and staff
• names and addresses of new donors to ask again
• diversified sources of funding

There are thousands of different ideas, but they all boil down to “give donors something for their money.”

What's the biggest advantage? People nervous about asking for money find it easier to make a request. As well, events can help a group educate people, gain publicity and find new friends.

What are the problems?

Running an event is really very similar to starting a business. Many non-profits don't like to think of themselves as having anything in common with the business world. Yet the similarities are striking.

Have a dinner and you're opening a restaurant for one night. Put on a concert and you're in show biz! Design and sell your own Christmas cards and you're into manufacturing and retailing.

Profits can be slim in any of these businesses, even when professionals run them year round. Restaurant corporations go bankrupt every year. Musicians' poverty is legendary, except for a handful of stars. Greeting card companies report declining sales as postal rates soar. Most small businesses expect a 3- to 5-year struggle before they are profitable.

How much more difficult is it for amateurs to do well? Who else would expect to open a business, operate it for a single night, and immediately generate substantial surplus income? Yet it can be done!

The profits may come from surprising places, however. In the cinema, for example, the sales of popcorn and refreshments can be more rewarding than admission charges.

Major recording artists often don't break even on tours. Large audiences paying top dollars for tickets and buying expensive souvenirs may not produce enough revenue. Tours frequently must be subsidized by government arts grants. Even the biggest stars have concerts co-sponsored by soft drink companies, brewers or car makers. Ultimately, the value of a tour is usually measured in promotional publicity that increases record sales in stores.

It is no surprise that non-profit groups sometimes lose money on events despite countless hours of hard work by many volunteers. The surprise is how often they succeed.

Why do special events fail?

• Costs are too high.
• Prices are too low.
• Not enough tickets are sold.
• Expectations are unrealistic.

Here are some of the most overlooked problems:

1. Front money is needed to pay bills before revenue comes in. Many groups do not have a source of capital to bankroll the investment phase. If they use operating funds, a loss - or even a delay in payments - can interfere with programs. Some board members will advance personal funds, or co-sign a loan. Although this can be risky, it is often the only solution.

2. Underbidding cuts income by setting prices below what a donor might give. Frequently, organizations decide the price by the lowest common denominator. The non-profit doesn’t want to exclude any supporters who can't afford high prices. As a result, a fundraising event turns into a community party that just breaks even - or worse, loses money.

Even when prices are higher, there are always some people who would give you as much or more as a pure donation, if you asked properly. Whether you offer a ticket for $15 or for $150, few people will offer to give more than the ticket price. Yet some of them can afford $25, or $250. They might give that much, if you asked. It’s often your organizational goals they care about, not the event itself.

They might even be happier to give you money if they don’t have to attend the event! Yet you incur expenses, and get less than they’d like to give.

3. A 'careful consumer’ attitude makes donors reluctant to pay for tickets. Sell $15 tickets for a dinner worth $10, and they question the value. They may forget that you are not putting on the event to offer them a bargain, but to raise money. In addition, they believe they gave your organization a $15 gift, not $5, since that is their out-of-pocket cost. The expenses are not apparent to the donors.

This problem becomes most acute when selling products. A souvenir sweat shirt may cost your organization $10 to produce. You may sell it for $15. The donors may compare it to one at a discount store for $5.

4. Disaster planning is overlooked too often. Murphy’s Law applies to fundraising events. It remains true that if things can go wrong, they will.

One group researched the entire meteorological history of their community. They wanted to determine the one day statistically least likely to rain, for an outdoor event. It rained, of course.

Rental of a tent, or alternate scheduling are essential for outdoor activities.

In the same way, contingency plans should be made in case of every emergency. Ask yourself every possible “What If” question. Figure out the answers in advance.

What if not enough tickets are sold? What if the main speaker or entertainment cancels at the last minute? What if a tight breaks Out? What if someone gets drunk and wants to drive home? What if...