Fundraising Companies are NOT the Enemy When it Comes to Educational Innovation

In my last post, I provided my take on the various companies in support of education.  In the end, there are companies and foundations that will be responsible for improving education and contributing in a positive way to the educational reform on the horizon.

Now, it's time to take things a bit further.  I take on the question, how will fundraising be a catalyst for innovation and change in schools in the future.

In order to explain this, we have to look at where schools are today.

Schools are by and large still using old technology to connect with children and at the same time, the digital front is already embraced at home.  Without going into much detail I think we can all agree that schools are still lagging behind the technology curve.

On a slightly different front, schools are still using paper in a large way.  Paper is used in the classroom and textbooks are in paper form.  This will eventually be replaced by all things digital.

But who will fund this technological revolution?  This switch from paper to devices?  How will schools afford to keep up with technology?

Yesterday I ran across this article: Obama Boston-bound; education, fundraising on tap

It's very interesting to me for a few reasons.  A group of corporations working together to consider educational innovation fills a huge and desperate need.  Unfortunately, one main point in the article is that schools need to do more with less.

So, how do companies create devices, textbooks and digital learning tools without schools being able to pay for this technology when it's relevant.  I think we all realize that if schools adopt new technology too late, there is a challenge relating to students who have a different technological reality at home.

I believe fundraising will be around for a very long time and will be a logical partner with foundations and corporations to complete the funding cycle.

I can envision corporations stepping up to do their part to get the newest technology into production. I believe schools will take a chance and go paperless.  I see schools making up a shortfall in technology spending with fundraising dollars and support from foundations. 

Once the need to save our schools is great enough, the community will support what is best for children.

I leave you with this...

Students will never express the need for better schools, new technology or collaborative learning.  They won't ask to go paperless, or for new playground equipment.  They will step over cracked concrete steps that need to be replaced.  They won't ask for unprocessed lunches.

Students don't know about the educational reform on the horizon nor is improving schools even something they are aware of.  They don't have a voice and won't be heard on their own.

We have to step up and represent the children if improving schools is to be a reality.

School Fundraising Representatives - Special Report

It struck me recently that I may want to take a minute to discuss the present situation with fundraising representatives.  Almost a state of the union if you will.  The thing is, I have one of the only real fundraising blogs out there not designed just to generate Google traffic and as you know, I don't hold back much. 

In this instance, it's a bit of an uncomfortable topic for me.  Regardless, let's give it a shot.

The first thing to get out there is that fundraising reps are great people.  I've known a lot of reps personally and and there is a self-sufficiency and drive that I see and respect in every one of them.  I also come from a sales background so I have an appreciation for what they do every single day.

The second thing to note is that fundraising representatives certainly do like things to be predictable.  Change does not necessarily meet a fundraising representative with open arms :)  Fundraising representatives like to do things with some consistency and repeatability - a good trait no doubt for a salesperson who works with the same groups year after year.

The industry is going through a consolidation which means that there are less fundraising companies.  There are still great companies out there to work with, but there are fewer every year. 

I began to wonder if there was some anxiety about the fact that there are less good fundraising companies to work for as the industry consolidates.  I came up with a few questions I thought to explore:

How are fundraising reps throughout the country responding to the changes in the industry and what is the outlook on their job opportunities moving forward?

Do changes in the industry impact a fundraising representatives chances of being predictable, consistent as mentioned above?

Great questions but as it turns out, fundraising representatives have survived for years, adapting and improving along the way despite logs of ups and downs.  As with any other industry, we have had our fair share of fundraising issues as well as economic ones to deal with.

People are always in flux.

Just like any other sales job, people move on either in favor of new opportunities no matter what the circumstances.  They also move on because companies scale back, close up shop or the job no longer has the upside it once did.  So, there may not be as many fundraising reps as there once was but that doesn't mean the job is inconsistent for those who have been in the business for a while. 

There really doesn't appear to be any anxiety out there.

We can't forget the many fundraising representatives that have been with their companies for a very long time.  They are happy and profitable and consistent.  There are just fewer places that this is occurring, but it is happening. 

Having said that, I want to quickly mention that some veteran fundraising representatives will be looking for a place to call home before retirement.  I hope they find the place that suits their needs as they are the real deal.

So, all-in-all, the outlook for fundraising reps looks good for 2011 and this year is shaping up to be a fun adventure! 

I would encourage your comments here on my blog.  Obviously writing about something like this is a bit of a challenge.  Because everyone is an individual with unique goals and experiences, it's hard to really say what fundraising representatives on the whole believe and think.  I hope I did alright tackling this one. 

Catch you soon and please feel free to leave comments, good or bad below.  Thanks!

Crushing School Fundraising Myths - A Not So Nice Take on a DIY Fundraising Idea

I just read a post about fundraising on a parent group message board. It was from Kris. Here is an excerpt about what she had this to say:

"Times are tough for parents. There are children that their parents can't afford hot lunches. They are not going to buy over priced wrapping paper, cookie dough, candles, etc."

She goes on to say that if they had a haircut night the school could charge $5 per haircut and the school can get 100% of the money using volunteer hair stylists. She offers some additional revenue by combining this effort with a bake sale by selling baked goods also and she finishes up with this point:

"Everytime you have a fundraiser company involved, they have to make their money too. Your going to be paying 4 times the amount the product actually costs."

Ok, Here's the Real Deal!

First off, parents will buy over priced wrapping paper, cookie dough and candles and so will their friends and coworkers and relatives if the cause is worthy.

Secondly, Kris would have you believe that a $5 per haircut plus bake sale proceeds would raise money - It won't. Take just a moment to stop think about it for a moment. I think you will discover for yourself why this is not effective.

If you haven't stopped reading, get ready for the spoiler: at $5 per participant, you can't make any money. If 25% of students show up you'd make $437 on a school of 350. The bake sale may contribute to things a bit but freshly cut hair and baked goods don't mix. Without bragging about our numbers, let me just say that a catalog sale will consistently generate many, many, many times this in profit.

By using a fundraising company and paying them for their products and service, schools benefit from the programs, promotions, experience and proven systems that not only make it easy but make it many times more effective than fundraisers held on ones own.

Here is an example. Let's say you want to travel via air without using an airline. You can learn to fly and you can rent a plane but it's not going to be easy, cheap or efficient.

Here are Kris' assertions against fundraising companies:

• Nobody can afford to buy over priced stuff
• Companies charge more than items are worth

Here are her reasons for hosting ones own event:

• Can host your own events without expenses
• Adding a bake sale will improve revenue
• Volunteer hair stylists will be interested
• It's easy to host your own event

Yikes, at this point it kinda sounds like I'm being mean doesn't it? It's not my intent. It's just that the rational doesn't work.

I know some things about how Kris thinks. It's because I have a tendency to do the same exact thing.

I am always thinking I can do something better or cheaper than a company that charges money for their products and services. I am a perfectionist and an artist and I like to create things. In the end, I know now that in most cases, it's not worth it. I can rely on others to create things so I don't have to start from scratch and learn everything from square one, making all the rookie mistakes along the way.

In the end, if you are able to create and host a successful event, I have all the respect in the world for that. I absolutely love seeing a 10th annual event. It's a marketing powerhouse and it works. Creating a successful and repeatable event takes work and consistency but if one picks the right combination of simple factors, your event can be tremendously successful.

When it comes to saying that product fundraising doesn't work then suggesting an event that without a doubt would be difficult with a good chance of failure, I just gotta step in to say that there is a reason fundraising companies offer value - because the fundraisers we produce are proven successes. They raise more money with less work than the vast majority of fundraisers ever run. They are consistent and are improving. I can only speak for my company when I say that product quality and value to the consumer are improving consistently.

Here are some fundraising truths:

• People buy fundraising products
• Sales averages are often much higher
• Fundraising companies offer value-added services
• Product fundraising requires less volunteer help
• Typical retailers don't give margins away (let alone 50%)

I guess what I am saying is be careful what you believe. I'm not advocating you use my fundraising company, it's not about that. Here it is... Don't let someone lead you down the path to an under-performing event fundraiser because they don't understand the value that a company provides.

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Jay Moneta is the Vice President of Believe Kids Fundraising and is feeling rather bad about bagging on Kris' ideas so badly. If you want to leave a mean comment for me here on my blog, I would totally understand. I can also be yelled at on twitter - twitter.com/BelieveKids for my lack of understanding or barraged via my homepage at www.BelieveKids.com

Comparing Fundraising Offers - 5 Hints to a Better School Fundraiser!

We know there is a big difference between fundraising companies and their offers.

Without question, it can seem like schools are 'sold' like a used car salesman. These days, it's hard for school volunteer groups to sort through real information come up with a true expectation of what their fundraising company should deliver.

These hints should make it easier to compare fundraising offers:

1) Get it in writing before you commit.

If you are accepting numerous offers for your fundraiser, let every company know what your preferences are and encourage written offers. Don't be swayed by representatives that tell you they 'could' do things - just get their best offer in writing up front!

Once you have all the offers give each vendor a chance to fix and improve their offer if you either change your preferences or have a better offer on the table. Keep in mind that with negotiations, you can improve your offerings but you have to ask. Remember, even a good company can't fix something in their proposal if they are unaware it needs fixing.

2) Don't let anything keep you from hitting your goal.

• If you have a relationship with a rep that you know is not offering you the type of fundraising options that would produce results, get out there and take a look at other options (if you are one of these groups, you know what I mean).

• Ask your fundraising company what promotional materials, goodies and extras they will be providing that help your sale! There is one company I know of (shameless, I know) that increases student participation by offering complimentary charm necklaces during the fundraiser to boost sales. Just one simple and organized promotion can make a huge difference in the outcome of your fundraiser!

• Look into each company to see if they have anything they offer that helps get principals, teachers and faculty involved. Getting true support from the school could just be the number one factor in improving sales. Ask what they have to offer.

3) Get the facts

The truth is, hardly anyone ever does. But if you ask what average sales are per student and participation rates for all the companies you are looking at, the most productive fundraiser will surface. You can take this data and compare with what you know about the results of your schools previous fundraisers. Then focus on improving the numbers (see #5 below).

4) Know that you will look good!

If you end up with a ton of complaints, your fundraiser wasn't a success no matter how much money you make.

Ask some or all of these questions:

• How many items did you backorder last year?
• Did you replace, refund or give credit for these items?
• How long did the process take to satisfy these customers?
• Who do customers call in case of damages, missing items, ordering issues, etc?
• How does the company guarantee accuracy?
• What is order turnaround time?
• Who processes the order forms?
• Can schools track their sales?
• Can my customers also buy online?

If you are not talking to a customer service oriented company, it should be quite obvious by the answers you receive (shameless promotion #2 - Believe has a look good guarantee).

5) Improve your sales - Ask each company what they offer that will increase your sales.

• Offering quality items at good prices produces value. When you offer a good value, you will get sales. Therefore, things like lower price points, nicer catalogs and a nice shopping site may just help. These items may be somewhat intangeable so start a list.

• Find out what you have access to as far as tutorials and advice, email templates, marketing materials, contests, etc. Rate the quality of the parent letter, prize program and catalog. By getting a sense of how students, parents and the community will react to the fundraiser, you can choose the right company for your needs.

Not all fundraising companies are used car salesmen. Good luck out there and thanks for looking! I hope that you found the information helpful!

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Jay Moneta is the Vice President at Believe Kids Fundraising and blogs here at www.fundraising-advice.com I encourage feedback, comments and questions here or at twitter.com/BelieveKids Feel free to visit our website www.BelieveKids.com for more information.

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.