3 Fundraising Pitfalls and How to Avoid Them

Written by Tim Grable

February 26, 2017

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Fundraisers are a great opportunity for nonprofit organizations to raise awareness and get resources for their cause. That being said, it is not an easy thing to pull off, as there are many fundraising pitfalls organizers are not aware of. We are going to tackle three of those and see how they can be avoided.

1. Doing illegal or dangerous activities

Some of the best ways to raise a large sum of money are to organize a raffle or set up casino games. They are in good fun and encourage people to donate. However, the problem is that they are also similar to gambling, so make sure that you know the state laws before organizing something like this.

If you do not avoid this pitfall, you can expect heavy fines and penalties. There are also certain activities that may result in a tax liability. That is why it is vital to know what you can and cannot do. Otherwise, you might end up on the wrong side of the law.

Another possible problem is the chance of injury. Sporting events have the highest chances of participants getting injured, but, in the end, it can happen in any situation. It is in your best interest to make sure that the whole event is covered by insurance.

The best way to avoid these fundraising pitfalls is to be informed, to get a special event policy, and to register with a state agency to solicit donations.

2. Going over budget

Generating excitement for your cause is always great, but remember that your fundraiser has to generate money as well.

Think about your expenses and how much revenue you expect to get. You have to ask then yourself if the costs are justifiable. Remember that a large amount of time goes into planning the fundraisers and executing the strategies as well.

If the net proceeds are small, you might have to change something.

3 Fundraising Pitfalls and How to Avoid Them

Remember that you do not have to get the fanciest venue or the best catering you can. You are organizing a fundraiser for a noble cause, and people are coming to donate to that cause. Attendee satisfaction is important, but not as important as raising funds.

Create a realistic budget and make sure that you stick to it. If money is tight, you should ask local businesses for donations or discounts on catering or event spaces. There’s an excellent chance that they’ll be interested as you’ll be doing publicity services for them this way.

3. Having unorganized or untrained volunteers

Depending on the size of the event and the activities that will take place, you might need a large number of volunteers. The hard part is not usually getting enough people willing to help, but rather making sure they can help.

In our opinion, this is the most insidious of the three fundraising pitfalls because you might not even realize how much you are losing since the volunteers are not doing what they are supposed to.

It is crucial to have some training program set in place for the volunteers before the fundraiser. Even if they have experience in the field, going over their responsibilities and roles will make the whole event go much smoother. Keep a clear log of the money you get and help the volunteers do their best during the fundraiser itself.

Are there any ways of making sure you avoid all fundraising pitfalls?

It is not an easy question to answer. The thing that matters the most in these cases is an experience. As you organize more and more events, you will instinctively avoid any possible problems. Just make sure you learn a lesson from every mistake you make.

There is also another option is you want to make sure you avoid any problems: Get help from people who already have the experience needed to plan and manage a successful event. Get in touch with us and together we’ll create an excellent fundraiser with awesome entertainment and activities.

Be sure to read our other articles as well for more insightful tips.

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