Fundraising is the lifeblood of nonprofit organizations. In my three decades as a volunteer fundraiser serving as board chair and development chair for several Jewish nonprofits in Chicago, I’ve witnessed the transformative power of philanthropy. However, I’ve also seen over many years the pitfalls of overreliance on event-based fundraising. While galas, concerts, golf tournaments and similar events can infuse energy and financial support into a nonprofit’s work, they often present significant challenges that can undermine sustainability and donor relationships.  

By contrast, annual giving campaigns centered on mission engagement — and strengthened by multiyear commitments — offer a more stable, relational and impactful pathway for cultivating lasting donor connections.  

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Illustrative.

Events are often celebrated as the crown jewels of nonprofit fundraising. A well-planned gala with an engaging honoree, compelling entertainment and an inspiring fund-a-need can raise hundreds of thousands of dollars in one night. These events create high visibility for nonprofits, attract new donors and foster an exciting sense of community benefits that should not be minimized. Yet, the sparkle may be fleeting and often comes at a steep cost.  

First, events are inherently transactional. Many event donors perceive their support as a ticket to an evening of entertainment or a gesture of obligation to a friend, rather than a meaningful commitment to the mission. While honorees bring valuable networks and influence, their presence can shift the spotlight away from the organization’s cause, and the event’s profitability may not always meet expectations.  

Moreover, event success often hinges on external factors: the geography of the venue, the talent of performers and donors’ social calendars. These elements are unpredictable and largely outside the control of the nonprofit.  

Financially, event-driven fundraising can be precarious. With substantial costs for venues, catering, entertainment and logistics, nonprofits may spend as much as 50 cents for every dollar raised. This is an unsustainable rate compared to other methods of fundraising. Additionally, reliance on events creates a feast-or-famine cycle, making it difficult for organizations to plan budgets or sustain programs throughout the year.  

Perhaps most importantly, event-driven fundraising can strain donor relationships. Treating donors as ATMs for one-off transactions tied to specific events risks donor fatigue and may weaken their connection to the mission.  

Annual giving campaigns offer an alternative that prioritizes mission-focused donor engagement. Instead of seeking support through the enticement of an event, annual giving invites donors to invest in a nonprofit’s vision and impact. This approach transforms the donor experience from transactional to relational.  

Annual giving fosters deeper connections between donors and the organization. By emphasizing storytelling, impact and stewardship, nonprofits can demonstrate the tangible outcomes of donor contributions. When donors witness their dollars at work — through newsletters, impact reports or personal updates — they are more likely to feel invested in the nonprofit’s success. 

Incorporating multiyear commitments into annual giving further enhances sustainability. Donors who pledge recurring support over several years provide nonprofits with a predictable revenue stream, enabling long-term planning and program stability. Multiyear commitments also deepen donor relationships by reinforcing a sense of shared partnership and ongoing investment in the organization’s mission.  

This shift also lightens the load for fundraisers. Viewing fundraising as a long-term relational strategy, rather than a constant cycle of urgent asks, reduces the stress and frequency of campaigns. With multiyear commitments in place, fundraisers are not constantly calling on donors for money every few months. Instead, they can focus on maintaining meaningful, mission-centered relationships with supporters in between campaigns. This ensures that engagement is about partnership, not just the next ask.  

This model also empowers donors to choose how they engage. Those who enjoy events can still attend and support them, but their primary connection stems from their belief in the mission. Shifting the focus in this way turns contributions into acts of partnership rather than obligations tied to tickets or tables.  

Annual giving is more sustainable and cost-effective. Without the overhead of event production, nonprofits can allocate more resources to programs and services. Predictable, recurring contributions — particularly through multiyear pledges — provide greater budgetary stability, enabling organizations to plan effectively and sustain impact year-round.  

For annual giving to succeed, nonprofits must prioritize stewardship and relationship-building. A donor-centric approach — thanking donors promptly, keeping them informed, engaging them with firsthand impact opportunities and celebrating their contributions — builds trust and loyalty. Over time, this creates a donor base of committed supporters who give because they believe in the organization’s mission, not because they were asked at an event.  

Strong relationships are at the heart of successful fundraising. Annual giving thrives when donors feel their support matters and they are valued as individuals, not just as a checkbook. Achieving this requires intentional effort: personal calls, remembering and acknowledging events in the donor’s life, and invitations for donors to see the impact of their generosity firsthand.  

This is not to suggest nonprofits should abandon events altogether. Events can serve as valuable tools for cultivation, celebration, and community-building. However, they should complement — not dominate — a comprehensive fundraising strategy. By integrating annual giving, strengthened by multiyear commitments, as the cornerstone of their efforts, nonprofits can foster a more sustainable, mission-driven approach to donor engagement.  

For 30 years, I’ve been inspired by the generosity of individuals who believe in the power of nonprofits to change lives. But as fundraisers, we bear the responsibility to ensure we’re not just raising dollars  — rather we’re raising the bar for how we engage donors to our missions.  

By transitioning from an event-centric model to one rooted in annual giving, relationship-building and multiyear commitments, nonprofits can cultivate a culture of philanthropy that benefits donors, organizations and the communities they serve. It’s a shift that will strengthen not just the financial foundation of nonprofits, but their ability to deliver on their mission for years to come.  

Michelle Friedman has been a lay leader for over three decades, serving on the boards of nine nonprofits in the Chicago area. She is the board chair and development chair of Keshet, serves on the JDC Global Israel Disability Committee, ADL Advocacy Committee, is a member of Disability Lead in Chicago and chairs the Disability Committee of the Village of Skokie Commission on Family Services.