Raising money and creating a positive experience for your participants and donors doesn’t have to cost much or anything at all. There’s no need to spend on lavish expenses. As the event organizer, you want to keep any expenses to an absolute minimum. If you want to do something elaborate and costly, it’s a good idea to build up to that rather than to spend a lot on a first-year event, unless you have experience, have an established base of support, or if you have a lot of confidence regarding how much you will raise.
Always consider borrowing or renting to minimize costs. If you must make a purchase, always try to negotiate with suppliers to get goods or services for free or for a heavily discounted rate in exchange for being promoted as a sponsor. Remind the vendor that your event is for a good cause and is a non-profit in their community. Ultimately, you should try to keep expenses below 5%-10% of your overall raise. Some events that provide extra value to participants (food, music, entertainment, T-shirts, professional services, accommodations, etc.…) may have higher expense ratios, some running as high as 40% or 50%.
A good approach is to try to maintain as close to a $0-dollar expense as possible. This technique requires you to find a donor or a sponsor for anything you need to purchase. Let’s say you want 100 lawn signs to promote your event and they cost $4.00 each for a total of $400. You’ll need to find a donor or a company to pay for it. You can offer the sponsor to have their logo on the signs in exchange for their support. If you know of someone who would be making a similar amount donation, you can ask them to purchase goods or services for your event instead. If you are a beginner at organizing, this is a good technique to make sure you stay on track. It prevents you from taking on more expenses than you can cover.
If you don’t keep a tight control on expenses, you can quickly spend as much as you raise. Here is a sample list of potential expense items that you might consider borrowing, renting, or getting donated (purchased by a donor or provided free by the vendor). Create a list of any expenses you may incur to help plan your goals and budget.
Sample Expense Projection
Depending on your personal and professional networks, demographic, and geography, the average amount raised by a single participant can vary significantly. The average participant in MyEvent clients’ events raise approximately $165.
The number of participants can be difficult to estimate. MyEvent clients' events range from as few as 10 participants to as many as 500 participants. You can try to estimate a count for your event. If your event has been happening for years, you have some history to go by when estimating the number of people that will participate. If this is a “first time” event, projecting how much you will raise may be an educated guess at best, however it’s still an important step and can give you valuable insight. It also allows you to compare your estimates to your goals and see if they are in line.
Sample Revenue Estimate
Now that you have estimated your fundraising revenue and your expenses, subtract your estimated expenses from your estimated revenue to determine your estimated "Net Raise". Is your estimated "Net Raise" in line with your goals? Always stay focused on your bottom line.
