The good news is that everyone makes decisions in life that follow the same lack of true rational. It's not just PTA and PTO presidents, it's everyone - everyday.
We make decisions based on emotion and security and we base them on feel and trust, etc. So, what happens when a company that you trust let's you down and your school fundraising revenues fall?
Here is an example I just ran across involving a competitor who shall remain nameless other than to say they have a trusted name in the fundraising industry.
The school reports going from $12,000 raised last year to $8,000 raised this year. The thing is, they went from 50% profit to 40% profit margin from last year to this year.
Let's take a look at the numbers:
$12,000 @ 50% Profit Margin = $6,000 to School
$8,000 @ 40% Profit Margin = $3,200 to School
That's a 47% drop in revenue.
The point here is - specifics matter!
I get that we make decisions on relationships and trust and some other stuff but school fundraising is hard enough. It shouldn't be a shot in the dark and it shouldn't be a difference of 47% from one year to the next.
There were certainly hints that this fundraiser wasn't going to perform the same as it had in the past but I am not sure the school was unaware of them. Regardless, they didn't have a plan to make up the difference.
So, if you are the fundraising chair or PTA / PTO president deciding on your fundraisers, please don't be afraid to ask the tough questions. I know we're not really wired to do so but you owe it to your school to have a bit of predictability when it comes to your school fundraising.
A little tough questioning will equal fundraising consistency. Ask the tough questions!
• Historic number of items sold per student
• Historic student participation rates
• Average item price
You get these three numbers and you should be able to estimate your fundraising success.
Hope this helps and I encourage your feedback by leaving a comment below!
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