What Are The Different Types
of Events?
There are so many kinds of events that its 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 Ministers 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. Thats 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.
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:
- A number of major house lottery schemes have experienced difficulties. One
scheme reported a loss of $600,000.
- 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.
- 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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