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Beware of sacred cows, fundraising event ideas that waste time.

For years, I’ve preached against one of the sacred cows of fundraising: the gala.

Whenever a client suggests that they want to start one, I talk them out of it. When a client has one, I demand to see the event financials. Often, they’re dismal. And more often than not, the organization hasn’t bothered to factor in the value of the staff time that goes into the production.

You ask why I am so adamantly opposed events like this? It’s about time. Frankly, ticketed events like galas are a major time suck.

I’ve seen development directors in small and moderate-size shops spend half their year working on a gala that nets little. Far less than what that development director could have brought in engaging some major prospects, and for far less cost.

I’m not alone in this thinking. Give any development director a cocktail and they’ll fess up.

Everyone involved in nonprofit management — executive directors, development directors and especially board members — should transform the way you approach fundraising today.

You’ll come away inspired…and hopefully ready to banish one of your organization’s sacred cows.

 “But what about the income from my gala?

 

How do I replace that?”

 

It’s a great question, one that I will answer with a story.

Instead of doing the same old gala, we empower fundraising by focusing on Middle Donors.

A few years ago, I presided over a merger of sorts, on behalf of a community college. These were two institutionally related foundations under one college district umbrella. Both foundations had galas: one barely broke even, while the other netted $40,000 in its final outing. That’s before staff time was calculate.

As we brought the two foundations together into the new entity, the chancellor of the college district agreed, at my urging, to put the gala out to pasture.

A couple of months after we recovered from the final gala, we embarked on a new venture: a “middle donor” program.

What are middle donors, you ask? These are individuals who are giving at the upper levels of your annual giving program – between $500 and $10,000 for most organizations. They need more cultivation and stewardship than your direct marketing donors, but not the high level of attention you give to major donors.

We launched our program in February, using 1:1 solicitations by board members and our development director, as well as small group cultivation events. The program was designed to attract donors between $1,200 and $10,000 a year.

One of our board members – a generous local business owner – immediately stepped up with $20,000 challenge pledge.

In just five months – FIVE MONTHS! – we welcomed 59 donors to our program and raised more than $100,000.

We upgraded many existing donors to all-time high levels of giving, and recruited many new supporters.

And what did it cost? The design and printing of a brochure – no more than $2,000.

When was the last time you had that kind of return on investment with a gala?