TJ's Pizza and Fundraising Company

Fundraising Fundamentals

Reaching Financial Goals

Identifying needs and setting financial goals are vital first steps in conducting a successful fundraising campaign. With a clear understanding of how much money is needed and how it will be spent, volunteers will be motivated and focused. Clearly stated financial goals also will give a fundraising program a benchmark for success. Too often, fundraising coordinators equate financial success with the percentage of gross sales that their group will keep. While the percent of sales is important, there are many other factors that should be considered at the same time.

For example, one company may offer the group 50 percent of sales, compared to another offering only 40 percent. The "40% company" may be providing valuable services (e.g., incentive programs, consulting, kickoffs, timely delivery of merchandise, custom packing for individual orders) that save volunteer time or increase sales. The company offering the lower percentage may also have a product so superior in quality that the increased sales volume will net more money for the group. It may be better to choose a program that offers a smaller percentage if the added value of the overall program (including services) will more effectively achieve your goal. Remember: percentage does not translate into profits. If a company is offering a smaller percentage of the sales, find out why.

Among the services available to the organization eager to reach their financial goal, is the option to include an award or "incentive" program. Although the organization's goal is incentive enough for some volunteers, often prize and award programs can be a valuable addition to the fundraising program (including significantly higher profits). The best incentives will increase participation and, therefore, profits for the organization. They add fun and excitement and will involve as many volunteers as possible.

Awards can be based on the size of the sale (e.g., volunteers who sell one-to-five items might choose prizes from category A, while volunteers who sell six-to-ten items would choose from category B, etc.). Or it may be as simple as a "thank you" gift for taking brochures home.

Before selecting an incentive program, take into consideration the age of volunteers and the overall goals of the program. Be clear up front on costs that may be incurred for the prize program — sometimes there is a separate cost for the prizes; sometimes the cost is built into the percentage going to the fundraising company.