Are events really a good way to raise money for an organization?

Summary:

A colloquy on the theme that often just asking people to support you directly is more effective than selling things or holding fundraising events. (From the newsgroup in 1995.)

In September 1995, after numerous posts on soc.org.nonprofit by
companies promoting various fund-raising ideas for non-profits, and
several non-profits requesting new ideas for fund-raising events, Pete
Cafarchio, 102110.275@CompuServe.COM, began this thread called "gimmicks
vs. fundamentals":
I have a GREAT idea for fund raising! Instead of selling things and only
getting part of the profit, why don't we go out and (get this) ASK
people to give us $$$ for our causes! No middle man, and 100% profit for
our organizations!

Of course, I'm being somewhat sarcastic, but my point is that this
newsgroup is filled with the latest schemes/gimmicks/ideas. Part of that
is salesmen selling their wares, but it's also people who are ignorant
of the fundamentals of fundraising looking for quick $.

No gimmick can replace a sound fund raising program. You must have a
solid cause, mission statement, involved board & volunteers, identified
constituency, well-thought-out marketing plan, clearly articulated needs
and rewards for donors, good evaluation, and regular review of all of
these items. This is the "high road" to fund raising and done well, can
produce the resources needed for current program and future needs.

Anyone wanting to raise $ for a legitimate cause should know that
special events and selling products (or services) are some of the LEAST
effective ways to raise money!

Gravity Girl, gravity@PEAK.ORG, also agreed, but felt special events are
sometimes necessary and appropriate:
I agree with your post about gimmicks being useless. I'm sick of hearing
about credit cards and flower delivery and all the junk one can push to
raise a very little bit of money.

However, I do think appropriate special events can be important to the
overall campaign of a NP. For instance, the church reading series I
worked for did a production of writing by residents of the homeless
shelter. This is a benefit event that can become a "signature" event for
a company.

Signature events can bring public attention around to that company once
a year, just in case some major givers want to get their recognition --
it's a good way to highlight them, too. Finally, it can be an
interesting way to get new people involved as volunteers and individual
donors, even if the CASH doesn't add up to much after the special event.
Down the road, there may be a larger benefit.

Roger Tang, gwangung@u.washington.edu, Artistic Director PC
Theatre, agreed:
Such "signature events" are okay if it "is clear
from the top on what the event's purpose is. The trouble comes when you
try to mix purposes and fail to allocate resources properly. One group I
was involved with has been convinced that a special dinner is a 'major'
fundraiser---yet, for the past three years, it has consistently failed
to reach even 20% of its stated goal, due to lack of follow through,
planning and manpower."

Leigh Guinn, effcom@sirius.com, who is associated with Omnium Gatherum
Membership Management Software, responded to Roger's post with this:
"I agree that some nonprofits can overlook the bottom line by special
events and products that they fail to actually raise money. However, the
organizations I work with run membership programs that are very
successful." These benefits can be "as simple as memebership cards
allowing discounted or free admissions" or "as expensive as signed art."
She added, "However, the cost of the membership outweighs the cost of
the benefits, and ultimately the organization raises money, while
encouraging people to use their museums, parks, etc." Also, "these is
that members are more likely to give year after year, and more likely to
give above and beyond their membership dues."

"I am also struck by how many members forgo their benefits
for tax purposes, yet still give hundreds of dollars each year. Perhaps
it's the 'status' of membership?"