Fundraising
Definitions
Charitable status - a status granted by the government that
allows a community group to give out tax receipts. People
who donate to this group can get some of their money back
through a tax refund on the amount they donated.
Donor - a person or organization that gives your group money.
Funding base - how many places you are getting money from.
Funding strategy - how you plan to get money
Honorarium - a nominal cash amount paid to someone for a task,
usually not worth the full value of the labour, but as an
added bonus. Honorariums are usually small amounts for short-term
work.
Infrastructure - the internal structure that is needed to
make all other activities possible. For example, having phones
is necessary to offering phone counselling, so the phone equipment
and phone costs are part of the core structure needed to support
the group's activities.
Operating costs - ongoing, basic costs of just keeping a group
going, like office space, bookkeeping, having a phone and
other costs that will exist regardless of what projects you
do.
Project costs - costs associated with a specific activity,
such as ads, staff people, photocopying flyers.
Recognition needs - used in this article to mean what level
of knowledge people need to have of your organization in order
to make your event a success. For example, will people only
support your fundraising if they know you're a great group
(high recognition needs) or will they attend an event even
if they've never heard of you (low recognition needs).
Sponsors - the organizations that are giving money, time or
other support to a project or your group. Any group that is
involved in supporting a project should be credited or somehow
mentioned on written materials, ads and announcements about
the project.
There are many different approaches to fundraising. It isn't
just a hit or miss activity. Like any other skill, it takes
time to develop. The bulk of this time is spent building an
established funding base.
Different non-profit groups may have radically different
approaches to fundraising; their activities may involve finding
a consistent group of people to pay to support it (like an
arts centre), or searching for people who support their activity
despite the fact they will never benefit directly from their
service (for example, the Hospital for Sick Children doesn't
ask the kids for a donation, although the families certainly
make donations).
Basic Considerations
Do you have charitable status? If you do, you can issue a
tax receipts, which makes private donations more attractive
and is required for applying to certain granting foundations.
Do you have a clearly defined community? Do they have enough
money to give some to your group?
Do you have administrative costs? Few people get excited
about fundraising to cover office supplies - it can be hard
to rely on donors or campaigns to raise these costs. Project-oriented
campaigns stir people's imaginations more easily. Writing
grants can be a better source of funding for operational costs.
Do you have the resources (staff, office, financial reports,
structure) to apply for and receive large grants?
How much money do you need? You won't meet a $50,000 budget
doing bake sales. You might want to assess a number of different
funding sources to make up your total budget.
How defined and easy-to-contact is your community? If your
members move frequently, the possibility of a long-term funding
base becomes very difficult. Many organizations rely on a
small group of 10 to 100 donors who contribute every year.
Is this strategy possible for you?
How much time do you really want to spend fundraising? Grant
writing can take months, and some groups spend a lot of time
just raising their minimal budget. Assess your resources in
terms of potential labour, skills and enthusiasm for fundraising.
Can your goals be met by having more money? Before you go
off after money, really think about ways to try and accomplish
what you need with less funds. Don't spend time raising money
you don't need. That may sound obvious, but sometimes organizations
apply for grants just because they're there, not because anyone
has thought through what they really need the money for.
Charitable donations
When you ask individuals and companies for donations, they
like to receive a tax receipt for their donation. For example,
the Community Bicycle Network is charitable and can write
tax receipts through the Christian Resource Centre.
You can try to set up a charitable fund as an aspect of your
organization, however, there are restrictions. Charities can
only engage in non-political activities. "Education work"
is the most likely category to get an application for charitable
status approved. Sometimes you can set up a sub-fund for your
group, for example, a trust fund for a scholarship for students
working on bicycling issues and so on. The main drawback is
that charities have to have their own board, and you need
to be organized enough to fill out forms and reports on time
(charities are closely supervised by the government).
Project funding
Most of your fundraising should come under the category of
project funding - it's much easier to get than funds for general
administration. Don't think of core staff or expenses as doing
"administrative" work, but a series of projects.
You can meet your overall operating costs by combining a number
of project budgets.
Projects are good to fundraise around because it's self-explanatory
why you need the money. You can think up many different kinds
of projects, from events, publications, conferences, lobbying
campaigns and so on, that you can raise money for by charging
admission, grant writing, co-sponsorships, direct mail campaigns
and so on. Even if you are fundraising to cover your basic
operating costs, make it for something special - call it the
buy a computer campaign.
Small is beautiful
You don't have to design big campaigns to raise a lot of
money. Decide what you need and go after it. It is a disadvantage
if you think "Oh, we could never raise enough to do that."
Don't let yourself fall into that trap. Professional fundraisers
can pull in millions of dollars with slick campaigns. However,
they also spend hundreds of thousands of dollars and years
of work getting the money.
The best way to frame the problem of raising funds is define:
 |
why you need the money |
 |
how much you need |
 |
who you can ask for it. |
Some general tips
Be consistent.
The best thing to do is to develop a specialty and stick
with it year after year. After you've done it once, you already
have some basic information about how to organize it and campaigns
gain momentum over time.
Many organizations put on one or two events that keep them
in money. For example, the AIDS Committee of Toronto puts
on the Walk for Life that raises about a million dollars.
A women's shelter sells a recipe book that nets about $50,000.
A lesbian and gay university group puts on 4 dances a year
and raises about $6000. The key to success in all these cases
is that these groups improve on their strategy over several
years. When you've done it before, you already have the contacts,
know the location, where to take out an ad and send out the
posters. The events are well attended too, because they develop
a reputation.
The hardest part of fundraising is building up a group of
people who like to give you money and a group of people who
like to organize fundraising events for you. Every time you
do it, you get better at it, you can expand the number of
people who participate in it and make progressively more money.
Changing strategies every year will just frustrate you.
This doesn't mean you have to stick with a bad idea, but
don't have really high expectations for the first few years.
It takes time to work out the bugs in the system. A good fundraising
campaign comes naturally out of the purpose and structure
of the organization; it's developed over the years because
of its value in publicity, volunteer recruitment and educational
purposes before it begins to make real money.
Pick what you know.
You need to have the skills to pull off the fundraising activity.
If you have skills with artwork, don't try to make money by
offering to repair computers. It makes it harder to try and
learn how to do something at the same time you're trying to
get it done. You also need to be organized enough to support
fundraising activities. For some groups, have a canvassing
campaign makes sense because they already have a newsletter
(which they offer people who donate money), people who know
how to organize canvassing efforts, people in the community
who know who they are (the result of years of publicity) and
so on. If you don't have that existing level of organization,
canvassing would be a disaster.
Pick who you know
People don't give money to organizations, they give it to
other people. It's good if you represent a worthwhile organization,
but they need to have a sense of "knowing" who you
are. Try to get money from people who've come into contact
with you before - past board members, volunteers, staff, community
leaders, members of similar organizations, people who've benefitted
from your work in some way. Also, you need publicity in general
if you plan on a big fundraising campaign. Explaining what
your group stands for, what kinds of work you do, how your
operate and why you want their money is too long. Recognition
value helps you focus more on the issue at hand without having
to do all that background work.
Use the resources you already have to the fullest advantage.
If your group has staff people, skilled volunteers, office
equipment and other resources that can be used in raising
money - then do things that groups who don't have these resources
can't take on, this reduces competition and makes use of your
resources. A good example of this is selling products through
an office, many groups can't provide the staff needed to keep
an office open or can't even afford rent.
The special skills of your staff and volunteers should also
be considered in fundraising.
Cover your costs
One of the best ways to raise funds is just to not spend
anything up front. For example, you can put on a conference
where the advertising is paid for by the campus radio station
and newspaper (who are co-sponsoring it), the printing is
donated by another campus group (they paid for the printing,
your volunteers will be doing the postering), the speakers
are sent by a local speaker's bureau, the event is organized
by a grant staff person, the food organized by a catering
service, and miscellaneous expenses are covered by passing
a basket around after an enthusiastic speech during the conference.
When people participate in something, the need for funding
is obvious. Because they benefit directly, many are often
willing to donate towards the cost of the event. Many of your
programs can make back some of their costs.
Recognition
Develop a logo that people can quickly recognize.
If your group isn't well-known, organize around a cause that
is. If more people will come out for bicycle parts to Cuba
or bicycles user groups, then organize your campaign around
those issues. Tell them about your group's larger mandate
after they arrive.
Fundraising Events
Move-a-thons
 |
Organizational status: nothing
official needed |
 |
Volunteer needs: high |
 |
Infrastructure: contact phone,
good community contacts |
 |
Time: initially very high,
possibly 3 months |
 |
Fund use: unrestricted |
 |
Expertise needs: high |
 |
Recognition needs: high |
 |
Financial gain: $2000 and
way up |
Move-a-thons are hard to organize the first time, but get
a lot easier as you go along. It is especially useful if you
have a lot of volunteers who can help out on special occasions.
You need to get the permit to hold the walk, you can use a
city street or make it a trek through a park or wildlands
area (especially handy if you're trying to raise money to
clean up the area). Contact your City Department of Public
Works if you want to get a permit.
You can use a variety of locomotion in the move-a-thon. It
could be a bike-a-thon (handy for raising money for a bike
club), a walk-a-thon, run-a-thon (which attracts people who
just like to run) and so on. A move-a-thon allows for people
to use whatever mode of transportation they want to, including
wheelchairs. You can attract people just for the sport of
it, including biking, boating, swimming, skating, go-carting
and so on. Be creative. People who are more sports-oriented
are happy to pay a $5 or $10 registration fee for the chance
to sweat and win prizes (for the top competitors). You can
often get prizes donated by businesses.
You'll get more people each year. How popular the event becomes
depends on how much fun it is - try and be creative.
Raffles
 |
Organizational status: charitable
status legally needed |
 |
Volunteer needs: low |
 |
Infrastructure: venue to make
sales, contacts with businesses to donate prizes |
 |
Time: fairly low, mostly selling
time |
 |
Fund use: unrestricted |
 |
Expertise needs: low |
 |
Recognition needs: low, especially
if you have good prizes |
 |
Financial gain: $100 to $1000
average, very large draws possible |
Raffles involve administration, ticket distribution and sales.
You'll need at least one volunteer in charge of each aspect.
The more ticket sellers and distributors you have, the more
tickets you can sell.
Allow for enough time in planning your raffle. It takes time
for tickets for the permit to be approved (usually a week
or two, but up to 30 days if this is your first raffle), the
tickets to be printed (3 to 4 days) and the sales to occur
(2 to 3 weeks). You also need to search for donated prizes
before you even get the permit.
You need to keep track of how many tickets were printed,
who has taken tickets to sell, who has actually sold tickets
and who bought which ticket and their phone number so you
can contact them. Don't make the ticket stubs too long to
fill out, especially if you want people to buy several. Their
name and phone number is enough.
Permits
You need a permit to operate a raffle, obtainable from your
City Hall Clerk's Office. It's not hard to fill out, but the
need for charitable status is difficult. You may want to co-sponsor
(officially) with a charitable group.
You need to know what the prizes are, how many tickets you'll
print, how much you're selling them for and when the date
of the draw will be before you get the permit. Once you've
decided on this, you can't change it, so be sure to get a
few extra tickets printed so you don't run out.
Don't start selling tickets before you get the permit, they
must be printed with the permit number on them and sequentially
numbered. The name of the printer must be on each ticket as
well, which gives you a chance to ask the printer for giving
you the job at cost, since they get advertising with every
ticket you sell.
If any tickets or stubs go missing, your raffle is invalid
and your licence will no longer apply. Keep good records of
all the tickets. You'll need to send in a report after the
raffle is over. The report form should come with the application.
Prizes
Raffles and lotteries can vary from raffling off a bike to
full-fledged casino nights. The latter I'd recommend only
if you have some people skilled in running these events. In
some towns you can hire companies that provide professional
blackjack dealers and so on for a cut of the total.
Prizes don't have to be expensive to be valued. For example,
you could make a package of a dinner at a restaurant and a
limousine to an evening performance. The total cost is only
about $120, but since so few people can afford to spend that
much money in a single evening, it seems like a real luxury.
Other items that people value but don't spend money on are
personal services, especially massages (it's not too hard
to get a professional massage therapist to donate one free
massage), having their apartment painted, body lotions and
creams, entertainment, travel, books, good clothes, computers,
camping gear and bikes. Remember, the sense of "luxurious"
is what counts.
You can also raffle off "experiences", a dinner
with a local author, a chance to meet someone famous and so
on. People who are famous, semi-famous and otherwise notorious
are usually happy to donate their time to a cause they believe
in.
You can make political points with your prizes, for example,
the first prize can be the Premier's salary for a day, the
second prize a social worker's salary and the third prize
the daily allowance of someone on welfare. Try and be creative
with your prizes, it attracts interest.
Stores are usually willing to donate merchandise or gift
certificates. Approach the businesses in your area, or that
cater to your clientele.
When making the pitch, get right to the point. Introduce
yourself and the group. Explain that you're organizing a raffle
to raise funds for this registered, non-profit charity, ask
if they can support your efforts by donating xx amount. Don't
go into a long explanation about the group unless they ask
questions, give them a pamphlet instead. Sometimes visiting
stores can be good, because you can see their merchandise
selection. Ask for gift baskets if they have them.
If they say yes, make arrangements to pick up the prize right
then. Have someone go and collect it within a few days. If
they say maybe, arrange to call them back on a specified date.
If their prize is going to be first prize, say so. Remind
them of the advertising value of their prize.
Sales
The lower the price of your ticket, the more tickets you
can sell. Compare it with other ticket prices. If they are
selling for $1 and $2, your prize had better be substantial
if you plan to charge more, especially when you compare it
with some of the large, government-sponsored lotteries where
you can win substantial amounts of money for a $2 or $5 ticket.
If your prizes are small and don't warrant a ticket price
of $1, sell 2 or 3 for $1, but never 50 cents each. Avoid
any ticket price that involves coins. You may want to group
tickets into books of 6 and sell them for $1 each or 6 for
$5. This makes your accounting a little more difficult, so
add up the sales before you pull the ticket books apart for
the draw. (Otherwise, put the tickets into books of 10 to
make records easier).
Don't pressure people into taking more tickets than they
can sell. If you give them 50 tickets and they only sell 10,
they don't feel good returning 40 tickets. It makes them feel
like they've failed, which isn't true. Since people feel bad
about returning the unsold tickets, they won't give them to
you until moments before the draw, or maybe after. All along,
you might assume that they were able to sell 50 tickets, and
overestimate the number of ticket sales.
The draw
The draw should be at a public event, or for example, the
culmination of an Open House day, an Annual General Meeting,
a conference and so on. It's ideal if the winner is likely
to be present at the draw. Send a press release after the
draw announcing the winner. Always collect people's phone
numbers on the ticket stub so you can call them to tell them
they won.
Concerts and special events
 |
Organizational status: nothing
official |
 |
Volunteer needs: moderate
to high |
 |
Infrastructure: cash up front
for booking venues etc., a well-organized volunteer base,
contact phone, good advertising and places to sell tickets |
 |
Time: moderate |
 |
Fund use: unrestricted |
 |
Expertise needs: moderate |
 |
Recognition needs: low, especially
if it's a fun event |
 |
Financial gain: $400 to $3000
average |
With some exceptions, special events are not large money
raisers for the time involved. However, hosting special events
is a way to give people something in exchange for their donation.
Small businesses are usually more able to contribute in-kind
donations for an event than make a cash donation. It's also
much more fun for volunteers to work on organizing. Special
events bring your publicity and community awareness, can help
increase your volunteer base and otherwise introduce people
to your organization. Carefully choose events that will be
relatively easy to organize.
Selecting an event
Start up costs can affect the type of event you choose. Suppose
you brought in a big speaker for $4000 and sold 100 seats
at $10 each, that's a tidy profit for the evening. However,
you need to have the $4000 up front, as well as investing
money in advertising, booking the hall and other expenses.
The gains are big, but the losses can be unmanageable if you
don't sell enough tickets. If you plan on putting on a major
event like this, be sure you also have enough money to properly
advertise it and distribute the tickets. If you don't have
experience organizing events of this size, stick to smaller
events.
Put on events you'd actually like to go to yourself, not
something you think people "should go to." If you
think it's nice but wouldn't go if you weren't organizing
it, chances are that other people feel the same way. Try to
be creative; try a new approach. It should be fun to organize
and fun to attend.
Make sure the date of your event doesn't conflict with other
community events that would draw the same crowd. Call around
different organizations and ask them what they're planning.
While estimating costs, assume that you'll have to pay for
everything. If you get donations, that only increases your
profit. When estimating revenue, lean on the conservative
side to avoid unrealistic expectations.
Sales tips
Never just sell tickets at the door. Advance ticket sales
are the bulk of most sales for large productions. If someone's
already bought a ticket, they will make every effort to attend.
Sometimes people will buy a ticket just to support the group,
even if they don't plan on attending. To encourage advance
sales, offer cheaper prices in advance, and higher cost at
the door.
Distributing advance tickets is essential. A ticket coordinator
should make sure volunteers sell tickets and that they don't
sit in people's cupboard at home. Also, tickets should be
available through bookstores, your office and other places
where people who might want to attend the event hang out.
Unless you sell out, tickets should be available at the door.
Print up tickets with stubs or a detachable receipt. The
stub can be used for auditing and record keeping, and can
be used for fundraising or volunteer lists. A simple check
off if people would like to volunteer with your group can
recruit some volunteers.
Volunteers
Some events require more volunteers than others. Only take
on events if you have enough volunteers or can easily recruit
more. Some groups offer an honorarium to a volunteer who agrees
to be responsible for the overall coordination of the event.
Not everyone agrees with the concept of a paid volunteer,
however the purpose is to ensure that someone has ultimate
responsibility for the task, which increases their commitment
and often makes other volunteers more responsible with their
tasks. For some reason, this increased sense of responsibility
doesn't come when a staff person is being paid to coordinate
the event, mostly because volunteers figure the staff person
can devote full-time hours to finishing last-minute tasks.
Try and sub-contract out where possible to simplify the event.
Don't arrange food, sell a food booth to another community
group for 10% of their profits. Don't organize liquor sales,
try and get a bar to give you free space if they get the money
from the bar. This simplifies your event a lot; you can take
on more responsibility as you gain experience.
Advertising
Advertising is essential to a successful event. A general
rule for advertising is that the less you think you can afford
it, the more you're going to need it. Ideally, your event
would be co-sponsored with a radio station and a newspaper,
who would agree to carry a sizeable ad for you. Advance ticket
sales also help bring publicity, and tables and posters can
help raise awareness. Also, free listings are often read more
thoroughly than the rest of the paper.
For major events, however, paid advertising is a must. Don't
waste $78 dollars on an ad that's 2 inches tall. Waste $500
on a half page that will actually get someone's attention.
At least you stand the chance of someone seeing it and buying
a ticket.
Wherever possible, design the ad yourself, newspaper staff
are often rushed and can't do the job just the way you want.
You can put on special events with other groups, in order
to cut costs and share the labour of putting on the event.
If you don't have the money, volunteers, experience or ticket
distribution network to put on the kind of event you think
would be good, approach another group. Learn as much as you
can from groups that have experience with these kinds of events.
Parties and dances
 |
Organizational status: nothing
official |
 |
Volunteer needs: low to moderate |
 |
Infrastructure: cash up front
for booking venues etc., a well-organized volunteer base,
contact phone, good advertising and places to sell tickets |
 |
Time: moderate |
 |
Fund use: unrestricted |
 |
Expertise needs: moderate |
 |
Recognition needs: the dance
itself needs a good reputation |
 |
Financial gain: $400 to $1500
average |
The logistics of hosting a party or a dance are about the
same, expect that a party is considered a private event (and
you don't need a permit), while a dance will require a liquor
permit.
Parties are smaller to organize and net less money. They
are usually advertised through word of mouth (because other
advertising makes it public and occasionally illegal, depending
on whether you sell alcohol and so on). You make money by
charging for drinks, or for admission. You can include food
or snacks as part of the deal if you charge an admission fee.
You can raise a fair amount of money by hosting a party/dinner
for $50 a plate.
Dances are public events. The easiest way to organize a dance
is to hold it in a bar. They provide the liquor and the liquor
permit, and they keep the profit from the sale of alcohol.
You can charge admission at the door, and through a coat check,
raffle and food sales. Bars and pubs are usually amenable
to this. Be sure to get a good night, Friday or Saturday,
most bars like to have events on nights when no one comes
anyway, so they don't lose anything. However, there are reasons
people don't go to a bar on a Wednesday night, so it's safest
to stick with the weekend.
Sometimes you need to arrange for the DJ or band, other times
you need to hire someone yourself. The cost is usually about
$400 or so. Ask another organization that's put on a dance
who they got and what they paid. The music is very important,
so you may even want to get two different DJs who will draw
different crowds.
Dances can be time consuming at first, but you can spend
less time and make more money as they go on. Once you pick
a good venue, a good DJ and get a good reputation, dances
and parties can be good return for your money. Unlike special
events, they can be repeated fairly regularly.
Letter campaigns
 |
Organizational status: nothing
official |
 |
Volunteer needs: high set
up, low thereafter |
 |
Infrastructure: quite a bit,
potential to lose money on initial costs |
 |
Time: high set up, moderate
thereafter |
 |
Fund use: unrestricted |
 |
Expertise needs: high, especially
for set up |
 |
Recognition needs: high |
 |
Financial gain: $500 to $5000
average, more is possible |
Also called direct mail, it can take several forms from a
few handwritten notes to friends, a photocopied letter to
several supporters or a several-piece mail-out to hundreds
or thousands of people.
What you need:
A computer
Doing mailouts without them and it's impractical for more
than 100 pieces of mail. You also need to have the database
software to go with it (ideally). DBase is well known and
hated, Microsoft Access is easier to learn. If you must, you
can type up sheets with addresses on them that you photocopy
onto labels, but you'll need to track who made a donation
by hand.
A reliable mailing list
Having a good list of essential. That's why your name is
sold on mailing lists, it's valuable. If you mail a request
for donations to total strangers, you can expect that 2% of
them will respond to your pitch. Some groups have mailing
lists of previous donors where 75% of them donate each year.
this vastly reduces your mailing costs. You need up to date
addresses of likely donors.
If you want to begin a mailing list, try inserting a fundraising
flyer with a related newsletter (it's cheaper than mailing
on your own).
Tips
Tailor your appeal when speaking to different groups. Your
organization means different things to different people, you
can have several forms of letter that emphasize different
aspects of your work.
Make it an occasion
It shouldn't be just another letter asking for money, call
it the "Send a Bike to Cuba", "Annual Move-a-thon
for Greener Cities" or "Environments without Borders."
Give it a name that's written in capital letters so people
know it's real.
Do follow up
The first few mailouts will be difficult and costly. Once
you begin to narrow down you mailing list, you end up with
a trim group of a 20 to 200 people (usually) who give regularly.
Allow for follow up for people who don't donate at first,
give them two tries and then cut them from the list. Some
people will drop out over the years, they need to be replaced
by new donors, usually acquired by exchanging mailing lists
with another group.
Don't duplicate lists, it's wasteful.
Make sure you spell their name right and that the address
is up to date.
Keep track of people who have given money from year to year.
Record who donated how much and when. If someone has donated
before, they should be kept on the list even if they didn't
donate this year. Also track the type of donor - individuals,
companies, university related people, community groups and
so on. You may not want to start this process if you think
that a large percentage of your donors will relocate each
year, you be sending 10% or 20% of your mail to wrong addresses
each year.
Don't do direct mailing for environmental causes. You may
get some money, but you'll get more comments about how you're
wasting paper. Unless you plan on printing on hemp paper,
better stick to phone calls or some other method.
Piggyback your mailing, with another organization's newsletter
or mailout, or with your own newsletter or regular publication.
The costs of mailing are quite high, and many groups are willing
to let your insert your flyer and/or fundraising letter as
long as you help them with the work of stuffing and mailing.
Some things to include are:
 |
a brochure describing your
work |
 |
a return envelope (not stamped,
you don't want people thinking you have money to waste) |
 |
a donation card or clip-out
section |
 |
a financial report (especially
when mailing to businesses). |
 |
The fundraising letter should
be short and positive. Don't beg or threaten extinction
without their support. People don't want to donate only
to watch you close down in 3 months. |
Merchandise sales
 |
Organizational status: nothing
official |
 |
Volunteer needs: low |
 |
Infrastructure: venue to make
sales, cash up front |
 |
Time: low |
 |
Fund use: unrestricted |
 |
Expertise needs: low |
 |
Recognition needs: low |
 |
Financial gain: $200 to $1500
average, more is possible |
What to sell
You can sell practically anything. For example, string shopping
bags, sweatshirts, T-shirts, hats, scarves, key chains, coffee,
pens, postcards, bumper stickers, crafts, mugs, plants, mess
kits and publications.
There are distributors for most of these items who sell mass
quantities to groups. This way, you can get your name or logo
and/or a message printed on the item for sale.
Don't sell items that have a limited selling season, such
as Christmas cards and day books. Don't sell items that have
stiff competition (especially from other non-profits) and
avoid items that make more money for the distributor than
you (such as chocolate bars, which rely mostly on the chocaholic
volunteers breaking down and eating them, then having to pay
you back for the boxes they took to sell).
Sell things that make sense, don't create waste. Your publications
also serve an educational purpose. As a test, decide if you
would personally pay money for this. Don't ask people to buy
junk just to support your group.
Price
The price must be low enough to make the sale, especially
if you're beginners at this. For examples, sweaters are nice
to sell, but not many people walk around with $50 on hand.
Stick to something cheap. Also, don't buy too much different
merchandise, it's hard to keep track of it all. If you sell
plants, just have 3 or 4 prices for a variety of plants, it's
easier to track that way. Only have variety at a bazaar or
table, where the variety will attract people.
Offer discounts for bulk sales. For example, sell greeting
cards $1 each or 5 for $3. As they say in sales "a quick
nickel is better than a slow dime."
How to sell
Don't count on selling everything to your membership's friends
and relatives. It's a good market, but we tend to overuse
it. Sell items at each event throughout the year. Ask other
groups if you can set up a display to sell goods at their
events, they'll agree if you allow other groups to do the
same at your events.
Some stores (especially bookstores) will agree to sell your
merchandise, but usually only on a consignment basis (which
means that they don't owe you any money until the goods have
been sold, and that they can return unsold merchandise to
you). They also usually want a commission of 20% to 40%, so
work that into your price. You must have accurate records
and follow-up on sales to keep track of where your merchandise
is stocked and how much has been sold.
You may decide that the publicity and educational objective
is enough to give the item away. Buttons and pens are great
to give away at speaking events. Usually asking for a donation
for these items will more than repay the cost of producing
them.
Before you begin, ask around to other organizations. How
many copies of the book did they print? How many buttons do
they sell, how many did they sell in their first year? They
can tell you about their successes and failures.
Bake and garage sales
 |
Organizational status: nothing
official |
 |
Volunteer needs: moderate |
 |
Infrastructure: venue to make
sales |
 |
Time: moderate |
 |
Fund use: unrestricted |
 |
Expertise needs: low |
 |
Recognition needs: low |
 |
Financial gain: $50 to $500
average, more is possible |
The rules for merchandise sales apply here with one exception.
Bake sales and garage sales usually ask the volunteers of
the organization to subsidize it's activities. Think carefully
about whether or not you want to do this, after all, fundraising
is about taking from the rich to give to the poor, not the
other way around. Unless a volunteer comes forward with a
suggestion to raffle off their handmade quilt or sell their
household items, it may be expecting too much for volunteers
to donate so much, especially when the profits are so minimal.
It isn't necessarily the best value you can get for your volunteer's
labour, and nothing is more depressing than working for 4
hours to sell $10 of rice crispy squares. Always be sure to
ask non-volunteers for donations. Ask bakeries to donate cakes
and baked goods to the sale. For garages sales, advertise
in the general community that you'll come and pick up donations
people would like to make. Then, if your volunteers want to
contribute something themselves, that's fine. A better way
to use your volunteer's cooking skills is to host a full dinner,
where people pay $10 - $20 a plate and can select from a variety
of home-cooked dishes.
by Regan McClure
|