Saturday, June 10, 2017
Sunday, June 4, 2017
Understanding how to play the charity fundraising "Game"
Most people
have no clue how large the charity “Marketplace” truly is. I routinely ask new clients I meet with how
many charities do they think exist in the United States. 2,700?
10,000? 100,000? No – there are an unbelievable 104 Million
charities. If you then remember there are at 10 people involved with every charity, the number goes astronomical.
Synopsis:
There are 104
Million registered U.S. Non Profits.
Most popular charities realize that growth comes from opening “sub
charities” in other areas of the country, these “sub charities” are called “chapters.” Chapters not only spread the mission of the
charity but they also are a highly successful fundraising method – basically the
children of the charity feeding the mother.
With that in
mind – the 104 Million registered U.S. Non Profits grow to 150 million counting
the “Sub Charities” in the equation.
There are
two types of fundraisers:
a. Charity fundraiser – A registered
501(c)3 Non Profit – Basically a charity business.
b. Benefit fundraiser – When a community
comes together to hold a fundraiser for someone or something in order to help
them. The IRS allows for an unregistered
group to host one (1) fundraiser a year for a cause which is deemed non-taxed. These types of fundraisers are routinely for
an ill child, a storm damaged community or a family hit with an unseen tragedy. These are called “Benefits.” These “Benefit” fundraisers are not tracked
nor are they counted in the 104 million.
With the
above in mind, going from 104 million registered U.S. Non Profits, adding the sub-charities/chapters,
the number rises to 150 million fundraisers.
There are an untold number of Benefit fundraising events going on but we
know they are going on constantly.
Adding 50 million benefit fundraisers a year, the number rises to 200
million fundraising entities holding fundraising events each year. So how do you still out above the crowd?
200 Million Fundraising
entities in the United States, each needing to fundraise each year to keep
their mission going with only 50 states in the nation.
Fundraising competition
is ridiculous!!!
The “Fundraising
Myth”:
Most
charities or fundraisers simply have no idea about the above number. Each understandably believes that they are an
“Island amongst themselves.” They
believe that their charities mission or why they are hosting a benefit
fundraiser is more important than any charity in existence. They believe that everyone will want to be a
part of it and everyone will want to donate to their upcoming fundraiser. They believe that everyone will want to come
to their fundraiser. With that belief,
they advertise their fundraiser with the name of the charity because that is
what is going to attract people to their personal mission. They sit back and wait….and wait….and wait.
The “Donations
Myth”:
Many charities
believe that because their charity or benefit is so important and valuable,
that businesses and individuals will line up to donate. They also believe that if they ask,
businesses will donate high end items such as Harley Davidson motor cycles,
cars etc. If they do donate, they donate
items which will bring the retail price or higher because people will want to
give and pay above the retail price. They
believe that every business they approach will say “Well, what do you want or
what can we give you.” Same holds true
with sponsorship – companies will flip open their checkbook and say “Okay, how
about $10,000.00?”
The “Reality of Fundraising”:
Forget the
myth above – it’s entirely 100% false. Do
you remember the amount of charities I reported above? There are so many charities out there with
everyone screaming, paying for marketing etc. that everyone chooses a “Pet
Charity” or a charity they believe in and give to that one if any at all. The citizens of the United States are also
bombarded with charities asking for money.
Everywhere they go, they are asked to give. They become “numb” to being asked for money
which makes them numb to the mission of the charity so they tune it all
out. No matter where you turn, someone
has their hand out – right? Right. People are not paying attention. Here is the hardest part to understand and
comprehend – people don’t care because of this.
They just can’t – its reality.
The reality
is that people involved with charities “Hit Up” businesses constantly. Everyone
is asking for donations and businesses can only give so much – they have to
worry about keeping their own businesses afloat and their lights on. If they give, they give something they can
afford to give away – most likely something that is not selling in their
stores. But we as charities believe that
those items will bring full retail or above – this never ever happens.
Donated items
are only bringing 1/8 to 1/4 of retail across the county in any Silent or Live
Auction – People are looking for a deal and will not get anywhere near the full
retail value – here is why:
Local People
– Attending a Local Event – with items donated by local businesses = If your
guests wanted those items, they would go buy them, themselves.
No one
attends a charity event looking for a “Teeth Cleaning”, “Will preparation”, “Home
Inspection” or “Botox Treatments.” Items
like this sell for an embarrassing low amount of money.
Businesses
donate because they want a return on their money. They want “drivers” into their businesses.
The
Solution:
Understanding
all of the above, charities need to understand that it is vital to not act like
the “Norm.” They must plan their
fundraising events as events and not as fundraisers. They must stand outside the crowd. They also must have a plan to give businesses
what they want as well as their guests.
They must have a plan to utilize their collected donated items in a
platform which will bring much more than 1/8 to 1/4 of retail.
How does a
charity plan an event which will sell out?
How does a charity raise well above the norm, more than they have ever
raised? How do they stand out in a crowd
of millions?
If donated
items do not bring a lot of money in a Silent or Live Auction – then what should
they do?
Solution to
the Solution:
A charity
must spend money to make money. Fundraising
events must evolve, change year to year.
They must be exciting and fresh and be more about the event and less
about the charity. This will bring
people to your event and to your charities mission.
Are you
ready to grow and be more successful, if so, contact us today.
BW Unlimited Charity Fundraising is a North American charity fundraising leader in a convenient “One Stop Shop.” BW Unlimited Charity Fundraising is known across North America for planning fundraising
events which have ridiculous successful results – not only financial but charity
growth year after year. Contact us at www.BWUnlimited.com.
Thursday, June 1, 2017
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