Thursday, June 7, 2012
Your School Fundraising Profit Margin Matters!
Hey real quick. 10% back to the school is not a fundraiser. It's a service or possibly just a sales tactic.
Things are what they are so... it's up to you to understand what fundraisers are fundraisers and which are just marketed as such.
If you're in the market for a school fundraiser of any kind or a service to enhance your school, perhaps this post will help.
School fundraisers are intended to make money. There's a numerical reality to every fundraiser and they do vary considerably. A fundraiser with a good gift and wrap fundraising catalog company for example (I put my company here as an example, but there you may find alternatives out there) is strategically designed to produce results. In fact, very significant dollars can be earned in just a few weeks with very little volunteer help.
Fundraisers in this category include:
• Gift & Wrap catalogs
• Frozen cookie dough
• Magazine sales
• Some chocolate bar, jewelry and candle sales
By contrast, some fundraisers are more of a service. You offer something for a token of good will back to the school or group. Seems like maybe a slight distinction in some cases and a big difference in others. Let's delve in. First off, I am certainly not dogging these types of efforts. I want you to know up-front that whatever you do for fundraisers and services is fine by me if it's fine by you. I do in fact have a fundraiser in this category spirit gear for schools and groups. They just don't generate the same income to the group. That is truly the deciding factor. Things like participation matter as do the number of products sold.
Items in this category include:
• Box top and other label rewards programs
• Recycling programs
• Restaurant nights
• Single product fundraisers
• Party fundraisers - gold parties, Tupperware, mattresses
• Book fairs
These all have a service element to them. Recycling old electronics gets the schools a few dollars while providing a way to get rid of old and unused items that are of value for someone else.
The reason I mention this is simple...
If you offer a service fundraiser then roll right into a fundraiser designed to make money, what happens?
Yep, some folks will feel as if they have already contributed to the cause and not participate. So, instead of raising $100 for the cause, they've recycled a toner cartridge worth $2
I realize this is pretty general, but it's worth considering. The profit percentage you make is clearly important. Making sure that your participants are focused on the fundraisers that generate the most income is important.
If you want to develop a fundraising strategy that works, the other stuff should be reconsidered. The last thing the school needs is to host 10 or more service fundraisers during the year and call them fundraisers. Just like 'The Boy Who Cried Wolf', if you really do need money, everyone will just assume they have already come to your rescue enough.
Ok, until next time!
Keep the conversation going - twitter.com/believekids