Fundraising PLAYBOOK: How My Student Raised 3X Money of Her Annual Gala Goal (by moving her event donors to annual donors)
If you raised 3X of your gala goal, what’s the first thing you’d do?
Seriously, what would you do?
Hire staff so that you can serve more people?
Open a larger facility closer to the people who NEED YOU?
Launch a new program to serve people in a greater way?
Finally pay yourself and your staff a living wage salary so you could dedicate your full attention to those you serve?
It’s not an idle question. It’s very, very likely that you’re leaving money on the table at your annual event, and I’m here to show you how to use your event to build better donor relationships and secure larger donations that reach your organization’s true need.
Think raising 3X your previous revenue too big a dream?
Meet Sandi, my client.
Before we worked together, Sandi had never secured more than $25K in pre-event pledges for her annual gala, which had raised a total of $75K the year before. This last time around? She raised $73K before the event...and $200K total.
Sandi didn’t work fundraising magic (no such thing), instead, she got super clear on how to make an ask and what she needed to share with donors in the ask. She built her confidence to ask for what her organization truly needed, and ruthlessly cut out the things that were working against her fundraising.
In this post, we’ll cover:
How Sandi Raised So Much More
What To Change At Your Event
How To Analyze Your Annual Event (ie. Should you even do one?)
Where Sponsorships and Corporate Partners Fit In
How Sandi Raised So Much More (And You Can, Too!)
Sandi took the methodology and strategies from our work together and really ran with them. While she was at it, she proved what I’ve known all along, that the same process I teach nonprofit leaders to ask for money in comfortable, dread-free way helps secure larger donations across the board, including with events.
Here’s what we did:
We analyzed HOW Sandi had brought in the money the years prior.
We reviewed WHO gave
We restructured both the HOW and WHO with simple, but effective, changes.
Step 1: How Sandi had previously raised money
Like many fundraisers, Sandi relied on table sponsorship and an auction and paddle raise as the money-generating event activities. Here was her previous formula:
Step 2: Who was giving?
When we reviewed WHO gave, we realized:
A.) Table Hosts were not being asked to give their best gifts because, well, they were being asked to fill or buy a table at $500.
B.) Many guests of the Table Hosts/sponsors weren’t giving at the event because they felt their ticket was ‘paid for’ already.
C.) The ‘ask’ at the event was focused around non-mission activities like an auction, raffle, etc.
Step 3: Restructuring for better results
For 2019, we set the evening’s need to $100,000 and restructured HOW the money came in.
Here’s what we changed:
A.) No ticket - The event was free to attend and everyone was told there would be an invitation to give.
B.) We moved host/sponsor asks to one-on-one pre-solicitations. We raised everyone’s sights on the types of gifts the organization needed to hit the evening’s need (notice, I’m using the word ‘need’ not ‘goal’).
C.) The entire mood of the evening shifted from non-mission transactions to mission-based giving through a direct solicitation at the dinner table.
The Result:
$200,000 and counting--that’s double Sandi’s goal, and almost 3X her previous year’s total!
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How Those Changes Grew Giving
Sandi’s success is inspiring, but as you’ve seen, the steps she took to get there were actually pretty simple.
Ditch the Ticket
The idea of not “selling” tables at your gala is scary the first time you do it, I know.
But you’ll likely raise more money if you make the event free.
Why? Because (to a point) people give what you ask them to. A ticket for a table isn’t the best ask, because it doesn’t enable donors to give their best gift. In fact, a typical donation is usually more than a ticket price. So if you’re selling $50 tickets to people who would have otherwise given you $100, you’re missing out.
If your Table Hosts traditionally buy the entire table and invite guests, you’re getting a double-whammy:
The Hosts aren’t giving their best gifts, they’re giving what you asked them for-- the cost of a table.
The guests aren’t giving their best gifts (or any at all!) because they’re assuming the evening had been paid for. They don’t know the organization’s true financial need because the intent of the evening has not been conveyed to them.
2. Prepare Hosts and Guests For Giving
A huge part of Sandi’s success was because of the work we did with the Table Hosts. There were amazing, dedicated Table Hosts that paid their $500 table fee and filled their table every year.
The problem was that the Table Hosts had the ability (AND DESIRE) to give more than $500, but they weren’t being presented with THE NEED. It was time to raise everyone’s sights.
So, here’s what was in the letter we sent to the hosts to mix it up:
🎫 There was no ticket fee this year but that there would be an invitation to give
🤝 We asked to meet one-on-one with the hosts and did one-on-one pre-solicitations
🧑🤝🧑 This raised the host’s sights on the types of people to invite
🍽️ The evening’s theme was going to shift from non-mission transactions to mission-based giving through a direct solicitation at the dinner table
What happened?
💰Pre-pledges grew by 4X
💲 Total giving grew by 3X
💵 35 new, first-time donors
Click here to get the Google Document of the Table Host/Sponsorship letter we used to position everyone for pre-solicitations. It’s ready for you to make a copy and fill in your own details.
3. Laser-Focus On Mission, Not Transactions, At The Event
Have you ever attended a fundraising event where the evening’s activities are focused on everything other than . . . well, the mission? An organization serving the homeless population with a guest speaker who has nothing to do with the mission. A food-bank hosting a game night with no tie to their work.
It’s the biggest mistake I see nonprofits making, but luckily, it’s the easiest one to fix.
Your mission is worthy and valuable enough for people to attend, be inspired, and give a gift because they want to support those you serve.
Don’t get caught up in the false belief that you need to ‘give them something’ in order for the event to be a success.
You may think that focusing on auctions, raffles, or prizes conveys ‘We are fun and we love our donors’ . . . but what it really says is “We need to create reasons for you to give to us because our mission isn’t enough’.
Commit to pivot this year - because your mission is worthy of donors giving their BEST GIFT to you. It will take hard work and a plan.
A Quick Checklist
The best fundraising events are those that are designed to introduce or deepen a donor’s understanding of your mission and the impact it’s having on the lives of those you serve.
The best events should provide a way for attendees to:
🎇 Give to the mission
🎇 Enroll new donors
🎇 Cultivate existing relationships
🎇 Thank donors for their involvement.
Ask yourself:
If your event goes away, would that donor still give? If the answer is no, you need to re-focus on mission-centered activities.
Stop Right There
I love a good event - but I tell nonprofit leaders to NOT do them more than start them.
Often, organizations feel there is a magic bullet or secret formula to raising lots of money, and they just haven’t found it yet.
(Spoiler: Neither of those exist)
I don’t mean to sound harsh. But the truth is that most nonprofits never reach the annual revenue threshold of $1M because they are allocating their staff and board time to the wrong activities.
I often say that my program helps nonprofits understand the right activities you need to start doing – but also identifies the activities you may need to stop doing that keep you from raising more money.
I know, I know. You’ve always done one, or your board is demanding a sit-down-gala-style event. A lot of nonprofit leaders are in this situation. At first glance, an event seems like the best fundraising activity, but that’s only because most people haven’t ever had to learn to do major gift solicitations.
But major-donors aren’t going to simply show up and give their best gift at an event.
So what to do?
Some Do’s and Don’ts
1.DON’T plan an event to attract major donors (You know large donors rarely just show up and give large checks.)
2. DO focus on building your major donor pipeline
Here’s the thing:
When you don’t have a full pipeline of donors, it makes you TRY ALL THE THINGS. And then you get stuck in fundraising activities that take TOO MUCH TIME with LITTLE RESULTS.
But when you know HOW to build a major-gifts pipeline and secure a donor’s best gift, you’ll have steady funding coming in ALL YEAR LONG - and not just during event season
3. DO the most profitable thing.
If you’ve used the phrase ‘our event doesn’t cost us anything’ . . . followed by ‘the staff spends the entire spring working on the event’ . . . here’s why that doesn’t add up:
Time is #money - we all know this.
So run this calculation for me:
I want you hitting a 1:3 ratio of profit for your event. So, every ONE DOLLAR you spend THREE MORE COME IN.
Here’s the kicker: I want you to include your staff’s time in this calculation. So, if your coordinator makes $60K annually and spent three months planning the event - that means you factor $15K as the time expense.
This is where I see events go wrong - The board THINKS it’s profitable because of SPONSORSHIPS and IN-KIND donations are strong. But, YOUR TIME is one of the most valuable assets to the organization and it’s all getting spent on one, not actually that profitable, event.
Every hour you spend fundraising needs to yield high results - the size donations that will push you to the next level.
Quick check: Don’t plan an annual gala if you:
✔️ Don’t have a steady stream of annual funding every month
✔️ Haven’t implemented your Top 30-50 Major Gifts Plan yet
✔️ Aren’t comfortable with or haven't learned how to do one-on-one solicitations (because event revenue is all about the pre-asks)
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What About Sponsors?
I had lunch with the leaders of a very prominent corporation here in Chicago - And one of the longtime founders asked me a question that he can’t ask nonprofits:
“Sherry, tell me why nonprofits come around once a year and ask for sponsorships for their events? I get nothing out of sponsoring a golf outing or event.”
Here’s your decision tree on whether sponsorships should be a part of your ‘ask’.
👍 YES // Does the company get a big value from the Sponsorship? I’m talking access to, logo in front of, or PR to THOUSANDS of their exact and ideal client? If yes - approach them for sponsorship AFTER you’ve established a relationship with them. Don’t treat them like a bank.
👎 NO or Maybe? // At the end of the day, you will raise more funds when you have business owner’s hearts who are tied to mission vs. tied to event sponsorship.
Your first approach should be a relationship. Attempt to move into deep relationships with them so that eventually their best gift is secured. A business’s best gift does not come in the form of a sponsorship gift. You have to understand what type of giving is truly a ‘win’ for them.
Businesses give donations, too, and don’t expect things in return.
I see so much money left on the table because corporations are asked for sponsorships over donations. Why would you ask someone to be your top, Gold Sponsor at $10K when they have the ability to give $20K gifts?
Asking for sponsorships is a transaction. The business gives money and gets some sort of promotion in return. It’s ok - if it’s of value to the business. Then it’s a win/win.
But what if some businesses are sponsoring your events and feel like the ‘have to’ or ‘don’t really like doing it’? What if they’re interested in supporting your mission, but aren’t really getting much from the sponsorship arrangement?
How do you identify and shift those businesses who are willing to DONATE vs. SPONSOR?
🗸 During the ‘off-season’ of the event, take the time to meet with past sponsors and see if this way of giving is truly a ‘win’ for them.
🗸 As you get to know decision-makers, identify and move as many of the businesses into solicitations outside of the context of the event.
🗸 The exception to this rule is when the organization has the ability to provide exceptional or notable exposure to its core customer.
At the end of the day, you will raise more funds when you have business owner’s hearts who are tied to mission vs. tied to event sponsorship.
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Where Does It Get You?
So again, I encourage you to think about what would happen if your current event could be used to grow or secure your donor’s best gifts.
The endless time and energy you’re putting into it might actually be worth it.
You’d be certain you had a number of first-time donors.
And raising the attendee’s sights means you’ll simply bring in more money.
In Sandi’s case, it meant her event growing from $75,000
to over $200,000.
Most people think that events will be profitable with the right ticket price, the coolest auction items, or a local celebrity as the speaker. But as you saw with Sandi, it’s about making smart changes to restructure how the money comes in, raises everyone’s sights to your true financial need, and focuses on the mission to inspire your donors to give.
Sandi shifted her annual event to be A STEP in her donor’s annual experience . . . NOT THE STEP in her donor’s annual experience with the organization.
Join me in giving her a round of applause!
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P.S. Whenever you’re ready, here are 3 ways I can help you grow your nonprofit revenue:
1. Follow me on LinkedIn for content and resources first
I give away trade secrets and insider info every week - the same lessons I teach my clients about what they can do to start attracting larger dollars and generate more unrestricted money for your nonprofit.
2. Read my WHITEPAPER to see if your overall approach to financing your mission every year might be keeping you from growing.
Here you’ll learn THE BIG FUNDRAISING SECRET that keeps organizations from having the funds to achieve what’s in their strategic plans. Click here to get it.
3. Work with me to reimagine your overall approach to revenue generation
If you'd like to add 7+ figures of charitable revenue to your nonprofit, just send me an email at Sherry@QuamTaylor.com with the subject line “grow.” Tell me a little about your nonprofit and what you need to raise this year. I’ll get you the details! 🎯
