For charity organizations, a down economy presents a conundrum of sorts: the worse the economy, the greater the need for fundraising donations—and the greater the difficulty in securing them. When brainstorming fundraising ideas, it’s vital to consider how to maximize fundraising ROI.
But which fundraising ideas produce the best results? And which donor groups should be targeted to gain the most return?
Blogger Norman Olshansky, of non-profit consulting firm NFP Consulting Resources, presents some useful statistics to maximize fundraising (based on “Fund Raising: Evaluating and Managing the Fund Development Process” by James Greenfield) in a recent post.
| Method | Cost | ROI |
|---|---|---|
| Direct Mail to General Lists (non donors) | 115% | 15% |
| Special Events | 50% | 50% |
| Planned Giving | 25% | 75% |
| Direct Mail (prior donors) | 20% | 80% |
| Direct Mail to General Lists (non donors) | 115% | 15% |
| Foundations/Corporations | 20% | 80% |
| Major Gifts | 5%-10% | 90%-95% |
| National Average (all methods) | 20% | 80% |
In other words, to raise $1 through direct mailing general lists, you’d have to spend $1.15. But to raise $1 through soliciting major gifts, you’d only need to spend $0.05 to $0.10.
When you’re planning your next fundraiser, keep in mind which efforts produce the best results. Then brainstorm ways to maximize fundraising for the method you chose—whether that’s a direct mailing campaign or a gala.
For example, in October, Keep a Child Alive held its 2009 Black Ball to support children and families in Africa and India who have been affected by HIV/AIDS. The fundraiser included such high-profile names as President Bill Clinton, Alicia Keys, Queen Latifah, John Mayer and Sir Richard Branson. To maximize ROI and attendee participation, the group utilized a silent auction software system that allowed guests to pledge donations right from their seats.
The event experienced a 30% participation rate, compared with the less than 10% average participation rate of similar events. In the end, the Black Ball was able to generate more than $70,000!
What ideas do you have to maximize fundraising ROI?
Thank you for the tips on how to maximize the fund raising using events. It is certainly useful for strategies in making it so is one of the most important factor is raising funds.
You’re welcome! Glad you found the article beneficial.