Tuesday, July 4, 2017

Fundraising 101: Successful Fundraising is like Chess, not Checkers.

Yesterday, I was on the phone with a client who is now more of a friend.  We were discussing his problems with his charity coming to decision about their fundraising efforts.  During the conversation, I told him that people just don’t understand it.  They come and experience one of the events which we produce and say to themselves “Oh I can do what they do” and the following year they start off on their own trying to duplicate what we do.  They have no idea what they have got themselves into.

You see, people come to our fundraising events all across the country and they see it and think “hmmm, so they put items out on tables and people bid on them or buy raffle tickets, that’s easy.”  Then, they think they have it figured out and start thinking well, we really don’t need a Live Auction because that takes too long and not many people in the crowd bid on the items.  Then, they think about raffles…well we really don’t need all those raffles that they do in fact, I know, we should do a 50/50 raffle and just a couple of other ones.”   Then, here is when it really goes off the tracks “We shouldn’t hold it in a high end, expensive place.   We need to find a place that is cheaper and maybe we could get the food donated.”  As the train starts plummeting off the bridge down to the river below, they say this “Well, they put all of that consignment stuff in the silent auction that we have to pay for, donations are free and we keep 100% of the profit especially because the retail value of the items which he used in raffles is a lot.  They don’t know what they’re doing….we can do it better, cheaper and make much more money doing it our way.”  Just before the train hits the water in an explosive fire ball, they say “We need more entertainment, a band possibly and give people more time to dance.”  Then as the train is burning up, they decide “Lets save money and have a Cash Bar so we don’t have to pay for the alcohol too” and that’s when Taps starts playing.


Seriously that’s what happens….How do I know, because I see it time and time again.  So while I was talking to my friend, he said “the way you do your fundraising events is more like Chess instead of checkers” and he’s absolutely right!!!  Successful fundraising is EXTREMELY strategic.  There are reasons why we do what we do.  There are reasons why we promote having our events at higher end venues with great food.  There are reasons why we have a Live Auction, a silent auction and tons of raffles.  And there is definitely a reason why we promote the use of a DJ and not a band and definitely not a lot of “Dancing” time.  There are reasons why we don’t do 50/50 raffles and there are also HUGE reasons why we use consignment items over donated items all day and all night in Silent and Live Auctions and utilize the donations in raffles.

A very long time ago, we did several events which were in competition with other charities in the area which did something similar.  Those charities actually sent people to our events and they took video of our entire Silent Auction, Live Auction and Raffles.  They wrote down each and every item and where it was in the event.   Why?  Because they believed they could duplicate it – nope.  They tried and their events were disasters.

So….he’s 100% right!!!  Highly successful fundraising is exactly like Chess – it’s extremely strategic. You have to study it, study people and how they respond.  Talk to businesses and try different things year after year, time after time to figure out what works and what don’t.  There are reasons for everything – from the biggest things down to the tiny details that no one notices.  The logistics of our events are ridiculous.  You really have no idea what goes into something like what we do – but then again, that’s why we are a North American Charity Fundraising Leader. 

So before you launch off into what you think is going to be a highly successful fundraising event, stop and think – should I call them or not?  Then there are those charities out there who will hire a “FREE” Auctioneer or go after a “FREE” venue with “FREE” food and so on.

Then the stress, oh my god, the stress of putting something like this together is daunting.  Do you know how to promote your event?  Do you know what to tell your committee?  Do you have a committee?  Do you know all the equipment and paperwork needed for your “FREE” Event?

Your FREE event is going to cost you more than you could possibly imagine and then, you will lose more money than you could dream of, hoping to just break even. 
That is what playing fundraising checkers is all about – but we are the champions at fundraising chess.  If you would like our help, contact us at www.BWUnlimited.com, we would love to help.


BW Unlimited Charity Fundraising is a North American Charity Fundraising leader in a convenient “One Stop Shop” setting.  We can help guide you, your committee and your charity around the myriad of fundraising event pitfalls toward an incredibly successful fundraising event that will make a huge impression on your guests and raise you more money than you could ever dream of.  Many of our clients started out nervous, scared and skeptical but when it was all over, they couldn’t wait to start planning their next event.  Contact us at www.BWUnlimited.com.  

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.