Acceptance of Failure - The Reality of Fundraising in 2014 - Part 2 of 4

Many Charities today simply accept failure.  After their event, they tell themselves that it was successful no matter what the outcome.  A common practice is concentrating on the "Gross" or how much money the event brought in instead of the "Net" or the profit. 

Also, a very common practice is believing old myths such as they must have fully donated items.  This is, without a doubt, one of the worst myths out there today.  There are many reasons why this is a myth which we will answer in future blogs. 

But for right now - here is Part 2 of 4 - Acceptance of Failure:

#1 - Gross vs. Net – When asked how successful their event was, most charities will report their “Gross” from their event.  However, success lies in the “Net” or “Profit” made from the event.  Even then, the truth lies in the “Net Net.”  Commonly, when speaking with clients, we will ask this question and receive the same response.  When calculating the true “Net Net”, the national norm for successful charity fundraising events can be found with this simple equation – attendance times $100.00 – Net.  What this means is – 300 people attending x $100.00 = $30,000.00.  That is just the start.  For this equation, you must take out all the payables, all the “Pre-Event” sponsorship and simply go off what the actual event profited to find the answer.  If your event did not reach the “Norm”, you should begin to evaluate its success and begin to make the appropriate changes.

#2 – Donated vs. No Risk Items – Today, there are still charities who believe that they must have

fully donated items in their events and refuse to work with No Risk Auction Items because there is a cost associated.  However, we first must understand the “Truth” behind the Donated item. 

a.      Local Businesses donate items that they can afford to donate, commonly items which are not selling in their stores.

 

b.      These Businesses commonly donate the same item to their local charities for marketing reasons.

 

c.      Donated items do not normally have a theme (ie. Sports, Music, Travel)

d.      With local people attending the local event, these people are familiar with the business and have most likely been in their establishment.

e.      Donated items are not normally items which have massive appeal.

f.       At Charity events, everyone is looking for a “Deal” on the items which they bid on.

g.      Donated items are only brining 1/8 to 1/4^th of Retail across North America in Charity Events (Study performed by BWU over a 3 year period – this is the national average)

h.      With such a low performance, when the donor realizes that their product sold for 1/4^th of their retail, it lowers the evaluation of their products and their business. 

i.       Charities commonly utilize the same donation year after year, going to the donor each year to “Re-Donate” that item or Vacation.  Each year, the appeal for the donation goes down and down.

j.       Businesses commonly donate the same item to their local charities, this item is seen by Charity guests each time they attend different events – these people are commonly referred to as “Socialites.” 

NOTE:  Charities MUST understand that their guests also attend other charity events in their area, they just don’t support them.

With everything detailed above, here are the myths surrounding No Risk Items or items which have a cost:

a.      No Risk items take away money from our overall success – entirely false.  In truth, they pull money out of the crowd which they would not normally spend.

b.      Guests at our event do not have that kind of money to spend – entirely false.  Charities will never know what type of spending their crowd if they do not have items which have mass appeal and demand higher spending.

c.      Our guests will only spend so much, we need to have items which are only worth a certain price range – entirely false.  Charity guests will NOT spend anywhere near retail, nor will they spend over and above the retail cost of anything presented.

d.      Our guests make contributions to our charity by bidding on items – entirely false.  Charity guests attend charity events to support, but spend with their wallets.  After making large expenditures, they will then tell themselves “Well, it’s for charity.”  If the myth were true, charities would not need to host events, they would get massive amounts of donations via the mail.

There are many myths that Charities tend to follow down a dead end road.  If you would like to get on the road to success, contact the Charity Fundraising Experts at BW Unlimited Charity Fundraising today at www.BWUnlimited.com or call us at 410-658-8808, we would love to help guide you.

Myth versus Reality - The Reality of Fundraising in 2014 – Part #1 of 4

In this four (4) part series, I am going to address the various myths that Charity Fundraisers are still believing while providing the reality.

In the 1990’s, charities were not having a problem raising over and above the money they needed to fulfill their individual missions.  If you recall, this was the time when Mortgage companies began to spring up everywhere – but it was the precursor to what we now know as the “Recession.” 

Furthermore, there were no restrictions on donations and how much the donor could claim on their taxes.  Today is completely different with the tax codes and the amount a single donor/business can claim.

During that time, money flowed from every way possible.  However, today, this is not the case.  Charities have to work overtime in order to keep their doors open.  During this same period, many smaller charities simply went under.

Education is the key.  Fundraising is not simply the act of asking for donations.  If that were the case, charities would not need to host Fundraising events, they would just sit back and wait for the checks to arrive in the mail. 

Fundraising today is about psychology.  Understanding your supporters and the surrounding area from which your supporters will come from.  It’s also about understanding the “Reality of Fundraising” is in 2014.

In this Blog, I am going to try to explain the realities along with the myths that exist today.  You should also understand before I begin, that we (BW Unlimited Charity Fundraising) speak to 1,000’s of charities along with their personnel.  We attend and are a part of over 1,000 charity events a year.  We live, eat and sleep charity fundraising.  We watch trends, talk to consumers, speak to businesses, donors and staff on a routine basis.  We know, without a doubt, charity fundraising.  Most Charities conduct one (1) to three (3) fundraising events a year, we now are a part of over 1,100 a year!!!

Myth vs. Reality

#1 – The statement “its tax deductible” – Many charities utilize this statement when approaching businesses in order to receive donated items.  The Charity believes that they are the only organization asking.  However, truth be told, the same business owner is asked several times each day of the week.  The “tax deductible” fact becomes obsolete based on the amount of donations given. 

Charities should understand the facts – all can be found on line, a quick reference is www.Taxexemptworld.com.  There, Charities can enter they State, County, City or Town and find out how many charities are located in their region.  Go ahead and look, you will be amazed.

With a reference to my last Blog “Above the Crowd Noise”, charities must understand how many charities are seeking donations.  The reason to donate is not “Tax Deductible”, a relevant answer is “Marketing.”  Every business, including BW Unlimited Charity Fundraising, needs to market themselves.  Marketing should be the primary reason, your guests will see that the business has donated and “May” visit their establishment.  Supporting your charity is also another reason – with the last reason being that its tax deductible.  Remember, this is key, they hear the same thing from every single charity who asks.  You must be different. 

But remember, if marketing is the primary reason, Marketing is what you must deliver.  This is easily accomplished.  For more information about how, consult with BW Unlimited at www.BWUnlimited.com.

If you would like to know how to overcome the myths to find success, contact BW Unlimited Charity Fundraising today at www.BWUnlimited.com.

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