Getting off the Hamster Wheel of Fundraising Events
Picture this: your nonprofit is gearing up for its annual fundraising event. It's a big deal – a chance to raise some much-needed funds, connect with supporters, and celebrate all the great work you've been doing. Plus, it's a perfect opportunity to bring in new board members and spread the word about your mission.
Fundraising events have a lot to offer - but they’re also incredibly taxing on your organization. It can be extraordinarily challenging if your nonprofit's financial well-being and growth is too dependent on the success of your fundraising events.
If this sounds familiar, don't worry, you're not alone. Especially in early growth stages, many nonprofits struggle with overreliance on event-based fundraising. In this blog, we'll explore how to know if you’re over-reliant on events, how organizations can find themselves in this situation, and most importantly, what you can do to start shifting towards a more sustainable and diversified fundraising approach. Let’s get started!
Is this happening to you?
So, what are the signs that you might be too dependent on events for fundraising? There are quantitative and qualitative signs - if you know where to look.
First, take a peek at the origins of your revenue. If events are bringing in more than 50% of your donated income or more than 25% of your total income (including earned income), that's a red flag. Another warning sign is if event planning is eating up a big chunk of your staff's time and energy - especially staff who don’t actually have event management in their job descriptions, but somehow get pulled in any way. Another key indicator of event over-reliance is if most of your major donations are given at your events.
But it's not just about the numbers, you can also spot event over-reliance by paying attention to how key team members and leaders in your organization talk about your events. If your Executive Director is stressing about potential layoffs “if the event doesn't go well,” or if your Development Director feels like they have to cater to top donors' schedules (or else!), that's not a great sign. And if you're hearing board members grumble about having to "bug people again" for the event, that's another red flag.
“Over-Reliance”
So, how do nonprofits find themselves running fast on the hamster wheel of events, and can’t seem to slow down? There are a few common culprits. One big factor is short-term thinking – when you're focused on just getting through the next few months, it's easy to fall back on events as a quick fix. Scarcity mindset can also play a role, making you feel like you have to grab every opportunity to bring in cash.
Event over-reliance is also common when organizations don't have dedicated development staff or when key leaders, like the Executive Director or board members, don't have a solid grasp on fundraising strategy. Without knowing what else to do - or how to do it - they see events as the default solution.
Relying heavily on events is pretty common in the early stages of a nonprofit's journey. When you're just starting out, events can be a lifeline – a way to get some momentum going and start building those vital connections with supporters. You have to start somewhere, and it’s easy to see why most organizations start with events.
But here's the thing: even if event over-reliance is a common and understandable phase of your fundraising lifecycle, it's crucial to start thinking about how you can gradually shift away from it. You don't want to get stuck in a cycle where events are your main source of fundraising revenue. That's just not sustainable in the long run.
The key is to start developing more diverse and reliable fundraising strategies as soon as possible. This doesn't mean you have to ditch events altogether, they can still be a valuable part of your toolkit that can accomplish goals for community-building and visibility. But you want to minimize the stress they cause by ensuring you're not putting all your financial eggs in one basket.
The Solution
So, if you're recognizing some of these factors at play in your own nonprofit, don't panic. Awareness is the first step. Now you can start to make that shift and build a more sustainable fundraising approach – without pulling the rug out from under your event-loving supporters.
First things first: it's crucial to start developing other, more reliable fundraising strategies ASAP. This might include things like excellent new donor stewardship, building up your monthly giving program, seeking out grant opportunities, or securing multi-year pledges from major donors. The idea is to create a mix of fundraising strategies that aren’t pinned to the rollercoaster of events.
Unfortunately, most organizations that are too dependent on events can’t just stop their events cold turkey because it can throw an immediate wrench in financial stability If your donors are conditioned to give at events, sudden cancellation gives you little runway to secure their gifts outside of events.
So, what's the solution? You want to "cross-fade" - introducing more sustainable fundraising practices and giving them time to grow while you slowly scale back investment and budgetary dependence on your events.
You need to make this transition in a way that feels intentional and manageable, both for your donors and for your organization's bottom line. It's not about flipping a switch; it's about gradually shifting the balance over time.
Tips on reducing overreliance
So what does gradually shifting away from event-heavy fundraising actually look like in practice? Let's dive into some specific tactics you can use to start making that transition – without leaving your loyal event attendees in the lurch.
In-Event Fundraising Tactics:
One key strategy is to take a hard look at your in-event fundraising tactics. If you can’t just get rid of an event, how can you tweak the way you connect with donors and generate revenue at the event to make sure you’re building deep, lasting connections with donors that will make them more likely to give outside of events in the future? Are you relying heavily on transactional elements, like auctions or raffles? While these can be fun and engaging, they don't necessarily build true connections with your donors.
If you rely heavily on transactional elements like auctions or raffles, try to shift your focus to more strategic, relationship-building tactics. For example, if you typically have a huge, multi-layered auction, start gradually shrinking it down. Maybe you cut out the online component one year, then simplify the silent auction the next. Over time, you can reduce the number of items and the overall auction footprint, and the proportion of revenue that comes from purchasing behavior instead of mission motivation.
Similarly, you might consider phasing out things like raffles, heads-or-tails games, or dessert dashes. While these can bring in some extra cash, they don't really contribute to your long-term fundraising goals.
What you want to do instead is increase the proportion of funds raised through things like raise-the-paddle, fund-a-need, or envelope giving. These are the kinds of tactics that encourage donors to give directly to your mission, rather than just bidding on a cool vacation package.
The key here is to recognize that when you rely too heavily on transactional tactics, you risk attracting donors who are more interested in scoring a sweet auction item than in supporting your cause. By shifting to more mission-focused giving opportunities, you're helping condition donors to invest in your work for the long haul. And you need to reinforce that shift with great pre-event engagement and post-event stewardship that brings the mission to life and focuses on the impact you’ve made with their gifts.
Investing in Storytelling:
Storytelling is crucial. Events are a prime opportunity to help donors really connect with your mission on a deeper level. By investing in compelling storytelling and demonstrating your impact, you can start to shift those transactional donors into more engaged, committed supporters.
One important note here: if you're asking people from marginalized communities to share their stories as part of your fundraising efforts, it's crucial to provide compensation for their time and emotional labor. Make sure you're valuing their contributions appropriately.
It's also worth thinking carefully about the dynamics at play when you ask people to share personal stories in front of a mostly white, affluent donor audience. While these stories can be incredibly powerful, you want to be mindful of how you're framing things and avoid unintentionally reinforcing harmful power dynamics.
Ultimately, the goal of storytelling is to help donors see the real, human impact of your work. When you do that effectively, you're laying the groundwork for a fundraising approach that goes way beyond the transactional – one that's rooted in genuine connection and shared values.
Cultural factors that come into play
As you work to shift your fundraising strategy away from heavy event reliance, it's important to remember that this transition doesn't happen in a vacuum. There are cultural factors at play within your organization that can either help or hinder your efforts. So, how do you navigate those dynamics and get everyone on board with the new approach?
Engaging Your Audience:
One key piece of the puzzle is engaging your audience, your donors, supporters, and other stakeholders, in the change process. Instead of just making a unilateral decision to shift your fundraising strategy, enlist their opinions and input to help guide how you make the transition and how quickly you move.
This might involve surveying your donors to get a sense of what they value most about your events and what other engagement opportunities they'd be interested in. You could also have targeted conversations with key stakeholders, like your most loyal table captains or long-time event sponsors, to get their take on the transition and how you can continue to partner with them in new ways.
The point is, by involving your audience in the process, you're not only getting valuable insights to guide your strategy – you're also helping them feel invested in the transition and more likely to stick with you as you navigate this new terrain.
Board Engagement and Training:
Another crucial factor is your board of directors. In many small nonprofits, the board can end up hyper-focused on the annual gala or other major events, to the exclusion of other important fundraising work. This often happens because the event is the most visible and tangible part of the fundraising process, and it feels like the thing they feel like they can most directly contribute to.
But if your board is too fixated on the event, it can make it tough to make any significant changes to your strategy. After all, if everyone's pouring their time and energy into making the gala a success, they may be resistant to the idea of scaling it back or shifting focus to other tactics.
That's why it's so important to engage your board in the "why" behind the transition. Help them understand the long-term benefits of a more diversified and sustainable fundraising approach, and how it will ultimately help your organization achieve its mission more effectively.
It's also crucial to provide training for your board around the different roles they can play in the fundraising process beyond just the event. Maybe they can help make thank-you calls to donors after a campaign or serve as ambassadors for your organization at community events. The more they understand the full scope of fundraising and the various ways they can contribute, the less likely they are to get tunnel vision around the gala.
Finally, consider enlisting a champion or two from your development committee or board to serve as internal advocates for the fundraising transition. Having those voices of support within the leadership team can go a long way in building momentum and buy-in for the new approach.
Navigating the cultural dynamics of a fundraising shift is never easy, but by engaging your audience, educating your board, and cultivating internal advocates, you'll be well-equipped to make the transition as smooth and successful as possible. Remember, this is a team effort, and with everyone rowing in the same direction, you'll be amazed at how far you can go.
So… What to do Instead?
So, you're ready to start shifting away from an event-heavy fundraising approach, but what does that actually look like in practice? What are the alternative strategies you can start implementing to build a more sustainable and diversified fundraising program?
1. Year-Round Engagement and Education:
First and foremost, it's time to double down on year-round engagement and education. In today's digital age, nonprofits are no longer just service providers, they're content producers. If you want to keep your donors engaged and invested in your work, you need to be consistently sharing stories, updates, and opportunities for involvement across all your communication channels and social media.
This is especially important if you're still heavily reliant on events. Chances are, you need to build up your stewardship and engagement muscles outside of those big solicitation moments. Think about how you can create touchpoints and build relationships with your donors throughout the year, not just when you're asking for money.
It's also important to be realistic about the timeline for this transition. Shifting away from dependence on event fundraising is a marathon, not a sprint. It typically takes three to five years to make the change fully, so don't expect to go from a million-dollar auction to no event at all overnight. Instead, focus on making incremental, strategic changes over time that gradually shift the balance of your fundraising mix.
2. Year-Round Grassroots Ask Initiatives:
Another key strategy is to start incorporating more year-round grassroots ask initiatives into your fundraising plan. One place to start is with a solid year-end campaign. After all, 31% of all annual giving happens in December alone!
2. Recurring/Monthly Giving:
If you want to build a truly sustainable fundraising program, recurring giving is an absolute must. This is the strategy of asking donors to make a monthly commitment, rather than a one-time gift – and it's a game-changer.
Not only does recurring giving help you build a reliable base of donors, but it also taps into the way we live our lives now – via subscription. Everything from our music to our groceries to our razor blades comes to us on a recurring basis, so why not our charitable giving too?
Plus, recurring giving has the highest retention rate of any fundraising tactic, a whopping 80-90% on average across the nonprofit sector. That means that once a donor signs up for a monthly gift, they're highly likely to keep giving year after year. No matter where you are in your event lifecycle, this is a strategy you should absolutely be investing in.
Learn more about how to get your monthly giving program up and running by reading our Best Practices for Monthly Giving Blog.
4. Multi-Year Pledges:
Finally, consider incorporating multi-year pledges into your fundraising mix. Similar to monthly giving, this involves asking donors to make a commitment to give a certain amount over the course of several years.
Not only does this strategy ease your mid-term budget planning, but it also allows you to secure significant revenue commitments upfront. And unlike recurring giving, which can take a few years to really ramp up, you'll start seeing the revenue impact of multi-year pledges much sooner.
One great place to start with multi-year pledges is with your board of directors. Get them on board (pun intended) with the idea, then work your way out to other key supporters and major donors. You can even incorporate a multi-year pledge ask into your next event – it's a great way to secure those bigger commitments inside the event context and bring more stability to the event revenue while shifting other aspects of it.
Conclusion
We've covered a lot of ground in this post. If you're feeling a little overwhelmed, don't worry – that's totally normal. Changing up your fundraising strategy is a big undertaking, and it's not something that happens overnight.
But here's the good news: by even considering this shift, you're already taking a huge step in the right direction. Recognizing that your current approach may not be serving your organization's long-term goals is a critical first step in creating real, lasting change.
As you start navigating this transition, remember to be patient with yourself and your team. Shifting away from event-heavy fundraising is a process, and it's okay if it feels a little clunky or uncomfortable at first. The key is to stay focused on your ultimate goal: building a fundraising program that is sustainable, diversified, and truly reflects your organization's values and mission.
This blog post was authored by Common Great CEO and Founder, Ariel Glassman. Learn more about Ariel here and click here to book a Power Session with her. A Power Session with Ariel is a 90-minute, on-demand meeting that can be used to address your nonprofit’s priorities, ask questions, discuss barriers, and more.