Canadian Heritage

4

What Are The Different Types
of Events?

There are so many kinds of events that it’s hard to select the right one. Here are some rough categories to simplify the choices. You can use the list to spark some ideas:

§ 1 Extravaganzas

Examples include gala dinner-dances, benefit concerts, cruises, and major sporting events.

The same ideas can also produce low-cost variations, with lower ticket prices. Examples include community beer-halls, religious celebrations, or ethnic picnics.

People come to these events for a good time as well as to support your cause. They also come to see and be seen with the right crowd. Incidentally, "The Right Crowd" is not always the richest or most fashionable. People may want to attend to spend the evening with a crowd that is the most political, or the most fun, or the friendliest.

This category includes events that can justify high admission prices and/or attract large numbers of people. There is also a high degree of risk, and some organizations have lost fortunes.

Until recently, the Canadian record for ticket prices was $1,000 per person. Mila Mulroney and Peter Pocklington organized one such event. It included an exhibition game between the Edmonton Oilers and the Montreal Canadiens, and dinner at the Prime Minister’s residence. That raised $1.5 million for Cystic Fibrosis research. The Toronto Symphony also charged $1,000 per plate for a dinner honouring Walter Hamburger.

The new record is now $1,500 per person, $3,000 per couple. The occasion was a birthday party for real estate developer Elvio Del Zotto. The beneficiary was the federal Liberal Party. Mr. Del Zotto is the president of the Ontario wing. Interestingly, at about the same time a fundraising dinner with Liberal leader John Turner as the guest of honour was only $300. One with Prime Minister Brian Mulroney was only $400. Equally interesting, the guest list included several prominent Conservatives. Perhaps they were all attracted by the unusual opportunity to see his spectacular home.

In the US, tickets have gone as high as $10,000 per person.

Often the sponsors go to a great deal of trouble to create a memorable evening. That’s not always necessary.

Instead, why not let someone else put on the show? Devote the group's energy to the most important part selling the tickets!

Examples include premieres of new movies, theatre nights, or ball games.

Many theatre groups and sports teams are happy to sell tickets at a discount. The charity makes money by charging more than it paid for the tickets. Mark-ups of 20% to 40% are common.

Where no discount is available, the charity may buy full-price seats and create a value- added package. By combining the tickets with a reception or dinner, or perhaps transportation by chartered bus, a special combination can justify premium pricing.

Unsold tickets can usually be returned for credit, given enough lead time. If not, careful planning is required to be sure the non-profit group does not get stuck with expensive unsold seats.

§ 2 Bargain Hunters and Gamblers

Examples include bingos, raffles, casino nights, garage sales, rummage sales, auctions, flea markets, and bake sales.

People come for a good deal. Those attending may not even know which organization is hosting the event.

These can be modest events for small groups. They can be on a grand scale.

  • Symphonies and society groups have thrown dream auctions with over a thousand items promoted in special supplements to the daily paper.
  • Prizes for draws have included a round-the-world vacation, a house or a Rolls-Royce. The runner-up may win a pair of matching Porsches.
  • One hospital closed its 11-storey parking garage for a day to hold the world's largest garage sale.

The most successful have the prizes or merchandise donated. Raffle tickets maybe as low as fifty cents or as high as $250 each.

§ 3 Educational events

Examples range from bringing in a major speaker with a world-wide reputation, to putting on a slide show in a community centre basement.

People come to learn, or to be reinvigorated and reassured.

Non-profit groups are constantly trying to tell people about their work. Usually they pass the hat for donations afterwards. The results can be dismal.

Some groups have discovered that people will pay to attend an educational session, if it's done right. They may make a profit on the admission fee. They may also attract people they can win over as donors.

Authors who have recently published a new book are particularly promising. The publisher may pay part or all of their travel costs. They also generate media interviews, which promote interest in the event.

A free seminar on ethical investing might draw community minded people capable of making larger donations. A session on estate planning could attract people who might leave money in their wills to the group.



5

Selection of Ideas:

Winners You Can Use
and
Losers to Watch Out For

Fit is the most important factor in choosing which event you should chose. There are thousands of event ideas but which is for you?

Here is a list of major factors to consider. You may have others to add.

The right idea will fit your...

§ Human Resources (volunteer and staff)

  • Talents
  • Time available
  • Interests
  • Contacts

§ Financial Resources

  • Available Front Money/Investment Capital
  • Goals for needed net income

§ Organizational Image

  • Preferred profile
  • Ethical limitations
  • Specific message to communicate
  • Seriousness/Fun style

§ Audience

  • Interests
  • Availability
  • Ability to pay/donate
  • Long-term connection
  • Demographics (age, gender, income)

§ Timing

  • Advance planning time
  • Competing events
  • Seasonal suitability

What a Good Idea for a Special Event!

Too many organizations waste creative energy trying to come up with new ideas that may or may not work. You get no extra marks in fundraising for originality, only for productivity.

Some ideas do get worn out from over-use. This doesn't happen as often as most people think, however. Better to succeed by repeating a proven method than fail inventing something new.

Don't steal other groups' ideas. It's not only unethical, but may be unproductive too. An event that works well in your community once a year might fizzle if tried twice a year. Both groups could suffer.

You may be able to borrow an idea from another city, with modifications. Before you borrow, check with the group that originated the idea. They may already have plans to implement it in your community. Since they thought of it first, they can probably do it better. On the other hand, if they don't see you as a competitor, they may be willing to share their techniques with you.

Consider adapting a classic tried-and-true event like one of these:

§ 1 The 'Stay at Home' Event

People buy a ticket to a non-event, entitling them to stay home and relax. Since most people buy tickets primarily because a friend asked them, actually holding an event may be needless work.

Explain how much money the charity is saving by not arranging a hall, food and entertainment. Point out how much the donor saves, with no expenses for a hair-do, baby-sitter, parking, gas, rented tuxedo, and so on.

This is especially good if your target audience are people who are constantly on the go, who crave a night at home. If your supporters are “party animals” who look forward to a chance to get together, this may not be the right fit.

An extra benefit can be had by scheduling the non-event for the same night as an important television show related to your cause. This could be an investigative report, or a movie dramatizing your issues. It could be a concert starring your artists, or a game your team is playing. Urge people to watch it, and learn more about what you do.

Attach a teabag - donated, of course - to the ticket.

As a modification, you can even encourage the donors to throw their own neighbourhood fundraising tea party. This do-it-yourself event may result in dozen of mini- events on the same night. Each can raise a little money, at minimal cost and send it to you. They can even compete for titles such as 'Most Money Raised', 'Most Fun', or 'Most Innovative'.

§ 2 Give Someone an Award

When someone receives an award, all their friends, relatives and admirers will buy tickets to attend the ceremony. When a business leader gets one, their co-workers, customers, suppliers and hopeful hangers-on buy tickets, too. Even their business competitors may attend. That's why some of the most successful events are dinners in honour of big business leaders. A great many people feel the “invisible command” to attend.

Who you honour profoundly affects who attends and how many tickets are sold.

One group presented awards to two religious leaders and an ambassador in a single ceremony. The staff were disappointed that ticket sales were low. In previous years, they had honoured business leaders, and had much a larger turn-out.

The religious people were stalwarts, prominent and deserving. They were also brilliant speakers who made the evening entertaining and moving. Yet they could not draw a crowd.

The business leaders had few of these attributes. However, hundreds of people attended. They saw the awards dinner as a chance to network with colleagues and advance their careers.

Advocacy groups that often use confrontation may feel uncomfortable honouring people. Exceptional circumstances may allow it, however. One leader may have shown some progress, no matter how marginal. Recognizing that publicly can be an effective incentive in a social change programme.

A Roast may provide an opportunity to poke fun at someone's foibles, while raising money through their circle of influence. Be careful of the fine line between clever digs and embarrassment. Surprise Party Roasts are seldom a good idea.

§ 3 Rich/Poor Dinner or Third World Feast

At your fundraising dinner, serve some guests a lavish feast of meat, wine, and rich desserts. Others, to their surprise, get rice and beans. Or perhaps a bologna sandwich and a glass of water is their repast. Everyone at the event pays the same price.

The unequal dinners help provide an educational message to all who attend. A brief speech may explain the facts of hunger to all.

The distribution might be completely random, to show the degree to which luck controls our fortunes.

Or if the point is education about racism or sexism and the economy, discriminate against one group for an arbitrary feature. Choose something startling and novel as the feature that results in inequality, such as wearing glasses, or having big ears.

Sometimes it's up to the dinner guests to arrange a better distribution of the scarce resources. Other times, the organization brings out additional high quality meals once the educational point is clear.

§ 4 The Food Fair

To keep the costs down, it's ideal to get all the food and drinks for a dinner donated. Restaurants and suppliers can't always donate all the food for a gala. They can usually afford to give a portion, however.

Chefs from several restaurants, hotels and caterers might each contribute one special signature dish to a gala buffet. The restaurant gets publicity and the guests get a gourmet treat.

Sell the public tickets as for any dinner. Ticket prices can go quite high for this kind of all-you-can-eat buffet if the quality is good.

There are many variations:

  • Vineyards, cheese makers and importers might donate a wine and cheese tasting.
  • Brewers might offer a chance to sample exotic beers from around the world.
  • Pizzerias could contribute several pizzas each, so people could have one mini-slice from each for a taste comparison.
  • Chocolate has been used as a theme for events with names like Chocolate Sunday, Chocolate Orgasm, and Death by Chocolate. They offer candy bars, ice creams, cakes, hot cocoa and so on.

Food fairs can also feature dishes by amateur cooks. They usually agree to pay for all the ingredients. Sometimes the non-profit group can get the ingredients donated. Avoid paying for ingredients, though.

Here are some examples:

  • Celebrity chefs such as media stars, politicians, authors, business leaders or clergy could each contribute one dish.
  • The best home cooks provide their specialties.
  • An old-fashioned fall fair-style pie-tasting competition can still draw a crowd.
  • Men who don't ordinarily cook could compete for the title of Barbecue King or Chili Champion.
  • Gourmet box-lunches can be auctioned to office workers at a major downtown tower.

Dream up your own theme! This is essentially a bake sale, modified to increase the income and decrease the labour.

§5 Unusual Telegram Deliveries

  • Donors pay you to send a message to friends in a clever way.
  • On Halloween, tuck a message inside a pumpkin with a carved glad/sad/mad face. Write it in icing on a giant cookie for Mother's Day. Draw it on a balloon for Valentine's Day. Have it delivered by someone in costume on any festive occasion. Some groups have sent belly dancers, clowns, even exotic strippers of either sex within limits! Others send Christmas carollers to sing the message. Someone even tried offering a bouquet of dead flowers for someone you don't like that idea didn't work too well. It could be anonymous or personalized. The limit is your creativity.

Imagine the messages.

“Boss, I quit!”

“Happy Mother's Day from all the kids.”

“Marylou, I love you. Please marry me.”

“Even your best friends won't tell you... here's some mouthwash.”

“Happy Birthday, Dad, you're the best.”

Sell the service for a reasonable fee. Set up a booth in malls, offices, schools, service clubs, or religious centres. Organize teams of volunteers for publicity, sales, creative services, and delivery.

§ 6 More Tickets for Your Money Raffle

Sell donors 3 tickets for $2 (or whatever amount) instead of just one. Don't sell fewer than three as a minimum purchase. It feels like a bigger bargain, and if there's more than one prize, actually increases odds of winning.

It's probably best not to offer a discount for multiple purchases, however. Many groups have tried arrangements such as offering tickets at $2 each, 3 for $5. In many provinces this is illegal. Even where the law permits it, discounting makes accounting needlessly complex.

§ 7 Put a Price on Everything

Thinking creatively can reveal many more income sources at an event. Organizers routinely charge extra at a cash bar, but why stop there?

the floral centrepiece

If you have flowers at an event, someone will take them home. Why not sell them instead? This works especially well if it is an arrangement of dried flowers that will last for a long time.

Get the flowers donated in the first place, of course! Ask florists, garden clubs, or a flower arranging class at a school. One group even got the flowers second hand from a funeral home - don't tell the guests!

the photo opportunity

If you have a special quest of honour, have someone with a camera take pictures of people with the guest. Sell the pictures.

A simple cardboard frame, sold at most photo supply shops, can be personalized as a souvenir item. Add a printed design, a sticker, label or business card.

A Polaroid camera is best. The immediacy is exciting. Each photo can be autographed. On the other hand, with negatives some people may order several copies of the picture.

Make sure the guest agrees in advance. Time restrictions will limit the number of photos. Make that a selling feature. Advertise “limited quantities only!”

Some groups charge anywhere from $5 to $50 for a photo. If the guest of honour has a sense of humour, they may charge even more not to have your photo taken with him/her.

the encore auction

At a benefit concert, the performer can auction off a choice of encores. The audience can vote with the money they contribute. Anton Kuerti, the classical pianist, has raised thousands of dollars extra this way. He has auctioned up to three encores, for several hundred dollars each.

§ 8 The Hug-a-thon

Friends sponsor a 'racer' to hug as many people as possible in a fixed time, with a donation for every hug. Or a group of people (possibly in couples) pay an entrance fee for a mass hug-in, all at the same time.

Aside from raising money, it reaffirms the positive psychological value of hugging. Donations are raised the same way as with any 'thon'. This is an excellent choice for non-profits concerned with children or mental health.

§ 9 The Quit-a-thon or Slim-a-thon

Friends sponsor people to raise money by giving up smoking. They make a donation for each smokeless day, or even for each cigarette less than the usual habit. Or they sponsor people who are losing weight, offering a few cents or dollars for each gram or ounce lost during the event. This can last weeks or months!

HOT TIP:

How to collect than pledges

The hardest part of most thons is collecting the pledges. This is true for marathons, quit-a-thons, swim-a-thons, dance-a-thons and every other kind.

Collect the pledges in advance! Ask each participant to get the cash as soon as a sponsor promises to help. Make sure they also get the name and address so you can send the tax receipt and ask the sponsor to give again another time.

This method also collects the most money. Collecting after the event brings in only 50 to 90 % of the pledges.

Second best is to have the non-profit send a letter and reply envelope to each sponsor directly. Do it the day of the event, while it's still fresh.

The least efficient method is to send the thon participant back to the sponsors to collect and the money and send it in. Too many won't be bothered.

§ 10 Construct-a-thon or Clean-a-thon

Too many thons raise money and burn calories, but result in no socially useful by-product. Instead, volunteers can be sponsored to clean up garbage in a river bed, or along a roadside. Or they can build wheelchair ramps, renovate a community centre or rehabilitate housing for seniors.

Some groups have even built an entire church in a matter of days. Shades of the old- fashioned barn-raising so common in Canada's past!

Donors sponsor the activity at so many dollars per hour of work, or metres of progress.

What a Bad idea for a special event!

Not every idea works. There are some that it is probably wisest to avoid.

While some ideas are fundamentally sound, they fail because of improper planning and execution. Others are hard to do well under any circumstances.

However, no idea is universally bad. Some groups have had successes with all of the following. Proceed with caution!

· 1 Charity Car Washes don't produce much money

Many people start their fundraising careers as a student running a car wash. Many end their careers that same day. It is hard to make a lot of money at a car wash. The fees charged at nearby commercial operations keep the non-profit's price low. Customers can be scarce. Volunteers get soaked and dirty. Bad weather can ruin the event entirely.

· 2 Bachelor Auctions and Slave Sales may be embarrassing

Every few years, bachelor auctions reappear as a hot trend in fundraising. Then groups discover the problems involved, and they ebb again. Avoid them.

In a bachelor auction, one or more men offer to escort the highest bidders on a special occasion. They may also provide lunch in an elegant location, limousine service, tickets to the theatre or opera, or an invitation to a special party.

Recent media accounts reported one bachelor auction in Canada that grossed $200,000! Contacted behind the scenes, the organizer admitted that the net income was considerably lower. In addition, he said, controversy over the ethical questions nearly split the Board.

Others have had similar problems with bachelor auctions.

One group reported that the behaviour of the audience at their bachelor auction became so boisterous that it resembled a strip show. In fact, one otherwise level-headed Member of Parliament actually did begin to strip on stage. This causes embarrassment.

Another group reported difficulties when one of the bachelors propositioned the woman who had purchased his companionship for the evening. She expected innocent fun. He thought it should go further. Again, there was embarrassment.

A third group selected men they thought would bring high prices. Bidding was low, especially for some who could not be present that evening. The men felt insulted that their value wasn't higher.

Instead, have special people host an occasion. Buyers could bid on a lunch for six at a celebrity host's home. Or four couples could have dinner with a famous husband and wife. A winner could accompany a restaurant critic on assignment. This can be fun, and a popular auction item without the problematic connotations of a “Bachelor Auction.”

· 3 House Raffles Have Lost Big Money

Giving away a home or cottage seems like an exciting first prize in a draw. Yet one group lost over $600,000 raffling off a home. They were not alone.

Many groups have had difficulty.

Some provinces have reportedly declared house lotteries illegal. The Ontario government routinely cautions applicants to avoid the scheme. Here are excerpts from a warning letter sent by the Entertainment Standards Director, Business Practices Division, Ministry of Consumer and Commercial Relations:

  1. A number of major house lottery schemes have experienced difficulties. One scheme reported a loss of $600,000.
  2. Once the scheme is initiated, the organization is obligated (under Ontario law) to proceed in accordance with all license Terms and Conditions. If you have concerns about the viability of this program, or your ability to satisfy license Terms and Conditions, I would urge you not to start it. We would refund your license fee and cancel the license.
  3. No request for delays in the licensed draw dates will be considered by the branch.

Please consider your position carefully. If you decide to proceed, I wish you much success.

There are several major problems. First, small lotteries aren't as attractive as the major government-run lotteries. It's hard to compete with multi-million dollar jackpots. Some non- profit groups try to make their draws more attractive by offering very few tickets for sale. This increases the odds of winning, but usually drives the price high as well.

Second, the purchase price of a lottery or raffle ticket is not considered a tax- deductible gift under Revenue Canada rules. This means there is no added financial incentive to buy a ticket from a charity.

Most people have fixed ideas about where they want to live. They have visions of their dream house. They're fussy about neighbourhoods, commuting distances, schools and so on.. They don't get excited about a property that may or may not fulfil their ambitions. While they could sell the house if they win, that seems like too much work.

Worse yet, many non-profit groups pay for the house. This can cost thousands of dollars. It's difficult to sell enough tickets to recover the costs. Occasionally, non-profits have had houses or land donated for this purpose. Usually the donor is a property developer who wants to draw attention to a new sub-division that is not selling well. This may indicate that the property won't be an attraction for the draw, either.

Finally, many people have ethical concerns about gambling in general. They don't want to encourage it in any form. This can be disruptive for your group. It can also cause public relations problems.

For all these reasons, and given the negative experiences of several groups, house raffles in particular are not recommended.

· 4 Selling Products Is Fraught with Problems

Many groups hope to raise money by selling something. It may be chocolate bars, fruit, or spices. It could be buttons, t-shirts, sweat shirts or hats. It could be coupon booklets offering discounts in restaurants, hotels and retail outlets. All have been tried, and more.

They seem attractive, because the people who buy the products get something for their money while they support the organization. It also seems like less work to persuade someone to buy the product than to explain your cause.

With a few notable exceptions, most groups that try product sales are unhappy with the results.

Clearly this is not the case for all. Guides (or their parents) still sell cookies and calendars, and Scouts have Apple Day. UNICEF not only continues to sell Christmas cards and calendars, it has expanded into other product lines. In the US, some groups have whole catalogues of merchandise.

The major problem with sales is paying for the goods. This can require a substantial amount of investment capital. If you judge the quantities incorrectly, it can result in expensive over-supply. If the material is customized with your group's name, it may not even be possible to sell it elsewhere.

Consignments are the most acceptable solution. The wholesaler or manufacturer should agree to take back unsold stock with no penalty.

Many companies approach non-profit groups promoting their product as perfect for fundraising. They usually offer to let the organization keep about 40% of the purchase price, while they get the rest. That may be a perfectly fair split. However, it is usually not a special offer for charitable groups. That is a normal mark-up on wholesale price. You could probably get the same share on any other product you might want to sell.

Delivery of the goods to the consumer presents another problem. Shipping by mail is expensive, and can be unreliable. Materials that arrive late or broken can cause ill will. For bulky or odd-sized items such as sweatshirts and buttons, wrapping can be a problem. Direct delivery by volunteers can consume time, gas, and patience. Allow for the costs of packaging materials, shipping and returns in your calculations.

Finally, it's easy to over-estimate how easy it is to sell products, when gripped by enthusiasm. Volunteer sales forces are usually less excited at the prospect of going door-to- door, approaching friends and family, or sitting at a booth in a mall or arena. The potential customers, too, will compare your products to similar items for sale in nearby stores. Merchandising can be very competitive.

Product sales have been very successful for many groups. However, if you are considering such a project, investigate all the problems carefully.

· 5 Beware of Calendars, Dated Products and Perishable Goods

Of all the products groups sell, the riskiest are those with a short selling life.

Calendars, in particular, have brought grief to many groups. Typically, the idea is proposed in September or October. By the time artwork is approved and printing is completed, it is November, December or even January. If it's early, the potential sales force is busy doing their own Christmas shopping. If it's late, all the stores have already started discounting their unsold commercial calendars. By mid-January, unsold calendars are often given away, or sold to paper recyclers.

In those rare cases where calendars work, the creative process begins no later than February, and the finished product is available for sale by June or July.

One international agency decided to illustrate each month with coloured postcards of Third World scenes. They buyers could detach these and send them to friends. Although the calendar was well produced, sales were poor. Fortunately, the group managed to pull out the post cards and sell them individually and in bundles. Years later, they still had a plentiful supply of cards.

Another group decided that a calendar would be a fitting way to keep their mission on supporters' minds year-round. Instead of selling them, they produced a calendar as an insert to their magazine. It was sent out free in the November issue. With a cover, one month per page, and a photo to accompany it, it only took up 14 pages in the publication. While it produced no direct revenue, it was a PR success.

Adding the date or even the year to any product, can reduce its longevity. Some groups flourish by selling different souvenir items each year to collectors. But others find it easier to have an undated product, so that the surplus can be sold until it's all gone.

For example, during a festival, one community centre decided to sell T-Shirts as a fundraiser. At the end of the festival, they had sold only a portion of the supply. Had they not included the date in the design, they might have been able to keep selling them in future years. Instead, they gave away the left-overs to staff and local transients.

Material that is perishable and needs refrigeration is the most risky. Two major health charities sell flowers each spring. They must arrange quick shipment, refrigerated storage and rapid sales. Each has begun supplementing fresh flowers with artificial flowers and plastic pins or cloth emblems. Although potted plants, bulbs and seeds are somewhat easier to handle, they can still be difficult. The problems are similar, but slightly lessened in the winter for groups selling holly, poinsettia and cut Christmas trees.

Fruit and food are even worse. They must not only be kept fresh and away from pests, they must pass health inspection tests. They also have to be unbruised and uncrushed, and tasty when eaten.

While there are exceptions that prove it can be done, there are probably easier ways to raise money.

· 6 Avoid Fundraising Companies That Charge a Commission

A handful of companies in Canada offer to raise funds for non-profits on a commission. They promise that if no money is raised, the non-profit will not have to carry the loss. If it sounds too good to be true, it probably is.

Commission-based fundraising is against the Code of Ethics of the Canadian Society of Fundraising Executives, as well as several similar professional organizations in the United States. They feel that commissions take unfair advantage of the non-profit, and may actually reduce the amount of money raised.

Commissions put all the emphasis on immediate income. This may be a disincentive to treat potential donors well if they are not making a contribution right away. Donors who might make a larger gift at a later date, if cultivated properly, may be pressured to give a lesser amount during the campaign, so the fundraiser can collect a commission.

Commissions also discourage the fundraiser from training the non-profit's own volunteers in the art of fundraising, since it is hard to collect commissions on the money they raise. Instead, emphasis is put on paid canvassers. This may drive up the cost of the campaign.

In some cases, commission-oriented companies are paid a commission on the net funds left after expenses. There have been allegations that the fundraisers then steer much of the production costs to companies they own, have interests in, or receive kick-backs from. In this manner, they can collect a commission that appears relatively small while collecting large sums under the table.

One typical pattern is for fundraising company to offer to put on a show on behalf of the non-profit, and sell tickets for it. Investigative journalists have accused at least one company of using high pressure tactics to sell the seats. Donors have been asked to buy one or more seats for disabled children to see the show. The journalists claim that few disabled children were brought to see the show. They also say that many more seats were sold than were ever available. Finally, they say that the charity involved was misrepresented to potential donors.

The company investigated by the journalists blamed a few unscrupulous former employees. While they accepted no responsibility for the problem, they did say they had cleaned up the difficulties. Many people remain sceptical.

Other companies offer to put out year books or programmes for non-profit groups. They promise to sell all the ad space and cover printing costs. Small businesses often feel pressured to advertise in these, although they receive little return.

Even when no shady practices are involved, commission fundraising can be expensive. In many cases, the charities have received less than 30% of the money raised, while the promotional company claimed the rest for expenses. While these abuses are documented most thoroughly in the US, there are Canadian cases.

One small Canadian charity, which received only a tiny fraction of the money raised on their behalf, also had to fight the fundraising company to get a list of the names and addresses of the people who had donated. Finally it received the charitable tax receipts that the promoters had issued for the contributions. They then discovered that the company had consistently gotten the name of the group wrong.

In defence of these fundraisers, it is fair to acknowledge that the costs of putting on a show and conducting a telephone or mail campaign can legitimately be high. If a rock star offered to give 30% of the proceeds from a concert to a non-profit group, he or she would be praised. No one would ask where the other 70% had gone. It's also true that many non-profits have received thousands of dollars they might not have otherwise raised.

Commission-oriented companies particularly prey on groups dealing with children, health issues or disabled people. Small self-help organizations are especially vulnerable.

Although it can seem an attractive offer at first, extreme caution is advised. Most non- profits should avoid commissions.

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      Last updated : 1998/10/26
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