Is Sally Foster Cost-Cutting or Revolutionizing Fundraising in Schools?

Sally Foster is a school fundraising company. As far as school fundraising goes, it's a big name owned by an even bigger name - Entertainment Publications, LLC who produces promotional products worldwide including the Entertainment Book.

For years, schools across the nation have received fall fundraising catalogs and students have sold the famous 'thick' wrapping paper. Without a clear history on the thickness of wrapping paper over time, it is clear that Sally Foster is credited with raising awareness of the benefits of the thicker premium wrap and holiday wrappers thank her for it to the tune of $7-$10 per roll. Anyone in the know considers it well spent cash.

Clearly as a company that reportedly touts $100 million in annual sales is very substantial in the fundraising world. What's more is that they are owned by a company that does over $6.5 billion in revenue annually - plenty of money to make things happen.

So, when news surfaces that Sally Foster is changing the way they do business this fall, ears perk up. There are lots of small fundraising reps and companies that naturally would like to expand into new schools and areas. On the flip side, they may just be onto something.

So, what are their motives? Is it a cost-cutting measure? A response to the economy? A change in business plan? A great new idea who's time has come? I can only speculate but what is clear is that this will be a different way of fundraising.

As the electronic age continues to expand, the need for paper products will lessen. Books will be replaced by electronic devices (Kindle, iPad) and so on. What is clear is the fundraising will evolve with technology in some way.

Sally's Plan (yes, Sally is real but is not involved in the company)

In fall 2010, Sally Foster will be putting an emphasis on gift cards for online shopping. I understand that the following things will happen based on a post on the PTO today site:

40% profit will be offered across the board for a gift card sale. Folks will purchase a $20 gift care and get it activated so it will be good for purchases on their shopping site. It would appear that all sales will be for home delivery which would be subject to shipping and tax where applicable. I did hear that there may be a very limited catalog that get's folks excited to shop online but I have not confirmed this.

So, if you are a big fan of Sally Foster, it's time to give your Sally Foster fundraising rep a call and ask about the changes. Without personal clarification on the matter, it would appear that the company is betting on internet shoppers as the future of the industry.

Red Flag #1 As with anything new comes the need for explanation. Students will have to be educated on the new game plan and then teach potential customers how the program works. Parents faculty and customers will have to re-learn the fundraiser.

Red Flag #2 There is no proven history. As with any new endeavor, there are some unknowns. Will the students explain the program correctly? will the parents buy? A lot of unknowns. A group that needs to hit a certain budget is taking a large risk being the first group to sign up.

There have been so many changes in the industry that it's not a surprise that Sally Foster will make changes to their programs. The current economy has nearly every company internalizing to look at the effectiveness of their operations. I sincerely hope that for the sake of the industry that consumer confidence is not affected. Because of this sentiment, I offer the following personal thought:

This may be cool. I really can't wait to find out more about the program and I hope it has possibility for reasons I will outline below. As a fan of progress and technology I have high hopes that fundraising can move further into the digital age successfully.

In closing, a move that smaller companies can't make but a bigger company can. For whatever there motives, they will be testing the boundaries of electronic fundraising in schools all across the nation and it will be telling. They either believe in the change or are cutting cost.

As much as Sally Foster is a direct competitor and a much larger one at that, I look forward to seeing if their efforts this year will prove that fundraising is ready to take a leap forward.

If their motives are to cut cost, they may find that they also cut success. If they motives are to prove that digital fundraising is a reality today and succeed, then just like the thickness of the wrap changing the industry, they may just change the industry again.

Only time will tell.

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Jay Moneta is the Vice President of Believe Kids Fundraising and can be reached via twitter - twitter.com/BelieveKids

With this or any of my posts, if you find the information valuable, please subscribe to the blog, link to this post, leave comments or reach me directly. I appreciate feedback, comments and suggestions of all types.

Geckler Companies Fundraising - Info for Schools and Geckler Fundraising Reps

In the next few days, fundraising representatives and numerous schools will be finding out that a prominent fundraising company in Minnesota and surrounding states has closed it's doors. It's sad news.

Geckler Companies, Inc. Fundraising was locked out by banks last week. Although the specifics of the lockout are not common knowledge at this point, one thing is clear - the fundraising industry has another casualty.

By all accounts, Geckler Fundraising was a customer service oriented company with long-standing customers. In our opinion, Geckler was a generous company with aspirations of becoming a national player.

The schools that are currently working with them are sure to be caught off-guard. They will be surprised to hear that the company is no longer.

The fundraising reps that work so hard to keep schools happy and well-financed throughout the year will be looking for work. Some will find jobs outside the industry but many fundraising reps will go out in search of another fundraising company product lines to offer.

What isn't so clear is if the untimely lockout forced any schools into a situation where they had no product and no fundraising profits. If there is a silver lining, it's that the spring fundraising season is just beginning and fall fundraising season is a ways off.

What is clear is that the newly acquired school supply division of the company, Desktop School Supplies, struggled to deliver this fall. Reports from numerous schools reported that their paid supplies were not delivered.

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Geckler Companies in the news Fall 2009:
Lakeville Company Leaves MN Schools Without School Supplies
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It would appear that Geckler made good on as many deliveries or refunds they could since this news article ran but the fast growth rate of the company combined with the current banking landscape appears to have overwhelmed them.

As the dust settles we extend our best wishes for each and every employee, fundraising rep and school that now will begin the search for another good vendor for Spring and Fall fundraisers. Certainly, we feel for any schools affected if it turns out there are any.

The reality is that business can be extremely difficult and the current fundraising landscape and economic realities put pressure on companies of all types - fundraising or not. What remains is a feeling that a good company is gone and it's a sad reality.

There just aren't many good ones left in the fundraising industry.

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Jay Moneta is the Vice President of Believe Kids Fundraising and can be reached via twitter - twitter.com/BelieveKids

With this or any of my posts, if you find the information valuable, please subscribe to the blog, link to this post, leave comments or reach me directly. I appreciate feedback, comments and suggestions of all types.