The Evolution of Special Events as a Fundraising Opportunity

by Robert I. Evans and Avrum D. Lapin

So often, sometimes too often, special events are a central focus and chosen method to engage involvement in a non-profit and to generate additional revenue. While it has its place, special events have not always been an especially successful approach for securing support from “regular” contributors and bringing in “extra” dollars. However, non-profit leaders should neither automatically dismiss special events nor utilize them as the main source for support. A happy balance and some type of blending works best.

Today’s fundraising arena focuses on the “new normal:” on the changes that now characterize non-profit practices and fundraising strategies brought on primarily as a result of the economic downturn. As recovery seems to be very slowly upon us, we ponder how do special events fit into a non-profit’s annual program?

The “new normal” has re-defined how a non-profit functions on a daily basis, and one area that has seen significant change is special events. Our approach as well as advice regarding special events: be cautious!

Especially over the past two years, many organizations became perplexed, and some quite fearful, about how to handle and integrate special events into their development calendars. Certain organizations have historically placed a strong emphasis on events, whether they are extravagant galas or charity sporting events. They were increasingly unsure of how to feature well-planned, compelling events on smaller, tighter budgets that produced more net dollars.

An even bigger concern rose to the surface as well: how to plan successful events that were not being seen as outrageously lavish and wasteful of hard-fought dollars. Donors did not want organizations spending their precious donated dollars on events that could be seen as frivolous, during a time when non-profits were contracting their staffs or reducing programming.

While we do not see events as the central development effort for non-profits of any size, we do see them as one important method to create community, build awareness and sometimes honor those who have made a commitment to the organizational mission and goals. We do not want to discourage any agencies from holding various types of special events, especially those that have become “tradition.” However, we strongly recommend that organizations continue on the same path of scaled down events and that leaders be much more frugal in their execution than they may have been in the past.

Here are nine mandates on how to plan a special event within today’s “new normal:”

Develop invitations and other materials in-house instead of outsourcing and use email more widely for dissemination and accepting payment;
Secure a larger number of sponsors or underwriters;
Look for opportunities to co-sponsor events with compatible organizations, thereby sharing in the proceeds;
Utilize social media and other free advertising sources to promote the event;
Decrease extra costs by eliminating goody bags or event “gifts” that do not add anything to the experience;
Scale down the size of the event, if necessary;
Be creative as you look to cut corners: for instance, turn a sit down dinner into a cocktail party with an innovative theme
Negotiate with providers: for example, we have noticed that catering businesses are much more willing to negotiate prices and provide creative menus at lower costs as they, too, are hoping to increase business and develop future relationships; and
Make the calendar work for you and your organization: country clubs are much more likely to open themselves for charity golf outings in May and September than during peak golfing times.

Here are four other, somewhat obvious, pointers that require being repeated:

set responsible dollar goals;
charge the maximum to come without discouraging attendance;
begin the planning process early (more time may be needed to recruit vendors and sponsors);
recognize that changes will need to be made from past years.

Note that we have witnessed more robust events being planned as organizations are regaining strength and confidence and looking to re-establish their brand and to celebrate certain accomplishments. As you begin to plan your next special event we recommend that you take into consideration many of the suggestions above. Be creative as you look to develop an event that will compel donors and others to attend, as well as leave the impression that your organization is making an impact on your constituency and acting as a responsible non-profit, within the realm of the “new normal.”

Robert I. Evans, Managing Director, and Avrum D. Lapin, Director, are principals of The EHL Consulting Group, of suburban Philadelphia, and are frequent contributors to eJewishPhilanthropy.com. EHL Consulting works with dozens of nonprofits on fundraising, strategic planning, and non-profit business practices. Become a fan of The EHL Consulting Group on Facebook.

Howard Adam Levy says

November 2, 2010 at 7:42 am

Bob,

I agree with everything you say except your first recommendation of bringing the design of invitations in-house. Most nonprofits do not have designers and so the result will actually be a turnoff to prospective donors and thus undermine the intent. Is saving a few dollars by sacrificing professional design really worth the risk of losing tens of thousands in contributions because of a negative perceptions of the organization from a poorly designed invitation?

Also, fundraising event invitations are often an over-looked method for promoting nonprofits. Consider this: If you mail out 2,000 invitations and expect to get 200 people to attend your event, then you are doing a mailing to 1,800 people you are know are not going to attend.

Don’t waste that opportunity to promote your organization to 80% of the people on your event list. Take advantage of your event invitation mailing to engage these potential donors in your organization.

Here are 5 things that an effective event invitation can do for a nonprofit organization:

1. Create awareness for your organization.

Tell people what your organization is all about. Believe or not, not everyone on your mailing list really knows what your organization is about. They may have given a donation once or be on your mailing list for many reasons, or may have last heard from you last year, and may have forgotten. If your invitation only mentions your event, but not much about your organization, you are missing out on creating awareness about your organization to many people who will not be attending your event.

2. Present a professional face to the world.

For some organizations, this is the only printed mailing they do (or one of very few), so why waste this opportunity to create a positive impression on your donors? The overall look of the design of the invitation, the quality of the printing and the paper, reflects the professionally-run people perceive your organization to be and how seriously they should take your organization. If a staff person who is not a designer creates your invitation, is it really going to have a level of professionalism that stands up to all the other professionally-designed mail that your donor is receiving that day and create the positive impression that you want to convey?

3. Convey your impact.

Donors are more likely to attend your event when they understand the impact that your organization has on people’s lives, so use your invitation as an opportunity to let them know. The fact that you are honoring a specific person at you gala, might interest a few people, but showing how you help lift thousands of kids out of poverty will appeal to a much wider audience.

4. Arouse curiosity about your organization.

If your invitation looks mundane, then unless they have a strong affinity for your organization to begin with, they probably won’t give it a second glance. Every opportunity to catch a potential donor’s interest should not be wasted. Since you are going through the expense of printing and mailing, why not create something dramatic to intrigue those who don’t know much about your organization to learn more about it.

5. Connect with your donors.

Your invitation is not a stand alone mailing. It is part of an ongoing communication you have with your donors. Instead of just seeing the invitation as a way to promote the event, you can use this mailing to deepen your relationship with your donors. If they can’t attend the event, provide other ways to engage them with your organization. Ask them if they would like to see photos from the event, sign up for your email newsletter, become a fan on Facebook, or refer someone they know to your organization.

• • •

As you can see, your event invitation can accomplish much more than simply collecting money from a small percent of people on your list. With some foresight, it can be a strategic tool in your overall marketing communications tool box. Don’t waste the opportunity – use a professional designer to maximize this opportunity to build your brand, connect with your donors, and drive results.

Comments

Howard Adam Levy says

November 2, 2010 at 7:42 am

Bob,

I agree with everything you say except your first recommendation of bringing the design of invitations in-house. Most nonprofits do not have designers and so the result will actually be a turnoff to prospective donors and thus undermine the intent. Is saving a few dollars by sacrificing professional design really worth the risk of losing tens of thousands in contributions because of a negative perceptions of the organization from a poorly designed invitation?

Also, fundraising event invitations are often an over-looked method for promoting nonprofits. Consider this: If you mail out 2,000 invitations and expect to get 200 people to attend your event, then you are doing a mailing to 1,800 people you are know are not going to attend.

Don’t waste that opportunity to promote your organization to 80% of the people on your event list. Take advantage of your event invitation mailing to engage these potential donors in your organization.

Here are 5 things that an effective event invitation can do for a nonprofit organization:

1. Create awareness for your organization.

Tell people what your organization is all about. Believe or not, not everyone on your mailing list really knows what your organization is about. They may have given a donation once or be on your mailing list for many reasons, or may have last heard from you last year, and may have forgotten. If your invitation only mentions your event, but not much about your organization, you are missing out on creating awareness about your organization to many people who will not be attending your event.

2. Present a professional face to the world.

For some organizations, this is the only printed mailing they do (or one of very few), so why waste this opportunity to create a positive impression on your donors? The overall look of the design of the invitation, the quality of the printing and the paper, reflects the professionally-run people perceive your organization to be and how seriously they should take your organization. If a staff person who is not a designer creates your invitation, is it really going to have a level of professionalism that stands up to all the other professionally-designed mail that your donor is receiving that day and create the positive impression that you want to convey?

3. Convey your impact.

Donors are more likely to attend your event when they understand the impact that your organization has on people’s lives, so use your invitation as an opportunity to let them know. The fact that you are honoring a specific person at you gala, might interest a few people, but showing how you help lift thousands of kids out of poverty will appeal to a much wider audience.

4. Arouse curiosity about your organization.

If your invitation looks mundane, then unless they have a strong affinity for your organization to begin with, they probably won’t give it a second glance. Every opportunity to catch a potential donor’s interest should not be wasted. Since you are going through the expense of printing and mailing, why not create something dramatic to intrigue those who don’t know much about your organization to learn more about it.

5. Connect with your donors.

Your invitation is not a stand alone mailing. It is part of an ongoing communication you have with your donors. Instead of just seeing the invitation as a way to promote the event, you can use this mailing to deepen your relationship with your donors. If they can’t attend the event, provide other ways to engage them with your organization. Ask them if they would like to see photos from the event, sign up for your email newsletter, become a fan on Facebook, or refer someone they know to your organization.

• • •

As you can see, your event invitation can accomplish much more than simply collecting money from a small percent of people on your list. With some foresight, it can be a strategic tool in your overall marketing communications tool box. Don’t waste the opportunity – use a professional designer to maximize this opportunity to build your brand, connect with your donors, and drive results.

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