Reimagining Fundraising Events: From Galas to Genuine Connections

Hey there, hi, and welcome back to Let’s Talk Fundraising! In this episode, we dive deep into the world of fundraising events. Before the pandemic, traditional events like galas often felt like a chore—expensive, repetitive, and sometimes even a punchline. But as the landscape has shifted, so have our opportunities to create meaningful, engaging events that align with our missions and resonate with our supporters.

Join me as we explore how to reimagine fundraising events to better connect with donors, engage communities, and build lasting relationships. We’ll discuss the evolution of donor expectations, the hidden costs of traditional events, and innovative ideas to transform your approach. Whether you’re looking to enhance donor stewardship, boost donor acquisition, or strengthen community ties, this episode is packed with insights and inspiration.

We’ll also share a heartfelt story about a hospice event that not only honored loved ones but brought an entire community together in a profound way. You can watch the video of this beautiful event here: Lantern Floating Ceremony.

If you find this episode helpful, please share it with your friends and colleagues. Let’s inspire more fundraisers to rethink their events and make a greater impact. As always, I’d love to hear your thoughts and ideas, so feel free to reach out and share your success stories.

Thanks for tuning in to Let’s Talk Fundraising. Until next time, keep striving for greatness and making a difference in the world.

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Transcript

Hey there, hi, and welcome back to Let’s Talk Fundraising! Lately, I’ve been thinking a lot about fundraising events. Before the pandemic, I’d rather have gouged out my eyes than host another gala. So if there's one thing I’m grateful for from that whole situation, it’s that we don’t seem to have the same pressures to host these events as we used to.

But I think a big part of why these huge fundraising events became so unbearable was because they hadn’t changed in a very long time. They didn’t evolve with shifting demographics, changing market conditions, or consumer sentiments. Events like galas literally became a punchline about rubber chicken dinners from our attendees. Internally, we faced so much pressure to cut expenses and increase revenue from these events that we would be sick to our stomachs. And the ferocity of our communities if we changed anything about the event, including whether or not we had chargers on the table, was enough to bring out the Hulk in anybody!

It felt like being on a death spiral we couldn’t break out of as an industry, let alone in our own nonprofits. So for that, I’m glad the pandemic broke us out of our fundraising event rut.

But is there a place for events in our workflows, and what do those look like without the constraints that used to force us into one specific activity over and over again? I think there absolutely is.

Let’s think about the evolution of our donor base. The traditional gala might have been a staple for older generations, but our newer supporters are looking for something different. They want engagement, authenticity, and meaningful experiences. We need to meet them where they are, with events that reflect their values and interests. Maybe that means smaller, more intimate gatherings, or perhaps it’s about integrating technology to create hybrid events that can reach a broader audience. Whatever it looks like, we need to be creative and open to change.

And speaking of change, let’s talk about the financial pressures we faced with traditional events. The cost of hosting a gala was astronomical, and often the return on investment didn’t justify the expense. Now, we have the opportunity to rethink our approach.

We also have to consider the purpose behind our events. Are we hosting them just because it’s what we’ve always done, or are they genuinely contributing to our mission? Let’s prioritize events that align with our goals and resonate with our supporters. This might mean moving away from the traditional gala format and embracing new, innovative ideas that better serve our organizations and communities.

So, what are some successful event ideas that we’ve seen emerge recently? How can we take the lessons learned from the pandemic and apply them to create better, more impactful fundraising events?

Grab your notebook and get ready to jot down some ideas because we’re about to reimagine the future of fundraising events together. Stick around because we’re just getting started on Let’s Talk Fundraising.

Before we get any further into reimagining what our events look like, we have to talk about something I am super passionate about. We absolutely have to deconstruct the mindset that events are about raising money. If your board or CEO is stuck in this mindset, have them listen to this episode.

The idea that events are great fundraisers is because overnight the organization gets this huge cash infusion. But that is such a misguided belief. So let’s break this down.

First, there’s the hard cost of fundraising events. Fundraising events are incredibly expensive to put on. In hard costs alone, you’re looking at spending 50 cents to raise a dollar. The only other fundraising activity that costs more is acquiring new donors through direct mail! Often we put on these huge events, filled with corporate communications patting ourselves on the back, maybe recognizing a donor or two, and then that is the end of the event.

Second, fundraising events cost so much more than the hard expenses to put them on. It’s absolutely crazy if you think that these events happen magically, and one morning you wake up and realize there’s a fundraising event happening tonight! Events take hundreds if not thousands of staff hours, and most of the time these are never factored into the cost of putting on an event. If we calculated staff time into these events, it would be more expensive to put on an event than it would be to do direct mail acquisition. And that’s a huge opportunity lost for the organization. When you think that major gift fundraising costs 5 to 10 cents to raise a dollar, direct mail renewal costs 20 cents to raise a dollar, and planned giving averages about 25 cents to raise a dollar, there are so many other activities that I would rather have my development team focused on with a much higher return on investment if the true purpose is raising money for the organization.

This idea that we raised half a million dollars overnight is so fundamentally flawed because of accounting’s revenue recognition principle. This principle says that we don’t report that revenue until the revenue is earned (meaning we don’t get to count it until we have the event). So one day it looks like there is no money, and huge liabilities for the organization, then the next day all that money disappears from our liabilities and now is our revenue. As an accounting principle, it makes absolute sense, but as a psychological phenomenon, it’s really misleading to make it look like it all happens overnight.

The other major issue that I have with events is our limited engagement with donors. How many of our donors leave our galas really feeling like they understand more about our missions? That they’re more aware of the struggles our organizations are addressing in society? That they’re more committed to supporting the organization after our event?

And who knows, maybe you’re the one organization where that’s true. But for the vast majority of nonprofits out there, the donor gets to have a lovely dinner, invite their friends to join them for a great night out, bid on a few auction items, and feel really great doing that. But are their friends now supporters of our organization? Probably not. Their friends probably aren’t that much more aware of what our organization does than before they came to the event.

So let’s move beyond this belief that events are great fundraisers.

But where does that leave events in our fundraising toolkits? I think there are three main areas where events can be really wonderful. But we have to go into them with a clear purpose.

First, events are fantastic for donor stewardship. They offer a unique opportunity to thank your donors in person, to show them the impact of their contributions, and to build deeper relationships. This is about cultivating long-term support rather than expecting immediate financial returns. When donors feel appreciated and connected to your mission, they’re more likely to continue their support and even increase their giving over time.

Second, events can be incredible for community engagement. They’re a chance to bring people together, to raise awareness about the issues you’re addressing, and to inspire collective action. Think about how you can use your events to educate your attendees, to showcase the stories of those you serve, and to galvanize your community around your cause. When done right, events can turn passive attendees into passionate advocates.

Lastly, events can be powerful platforms for visibility and branding. They allow you to showcase your organization to a wider audience, to highlight your successes, and to attract new supporters. Use your events to tell your story, to share your vision for the future, and to invite others to join you on your journey. It’s not just about raising money on the night; it’s about creating a lasting impression that will drive future support.

So, let’s reimagine our events with these purposes in mind. Let’s focus on stewardship, community engagement, and visibility. By doing so, we can create events that are meaningful, impactful, and truly beneficial to our organizations.

The first area where I think events can be truly great is stewarding existing donors. When I worked in the performing arts, our donors were coming to our shows all the time. Essentially, they were engaging with one of the services of our organization. Our Director, who had been traveling back and forth between Europe a lot at the time, had the great idea of building a donor lounge, similar to airline lounges, where our biggest supporters could come in before the show, have some refreshments and hors d’oeuvres, and access to a private restroom. If you’ve ever tried to get in and out during intermission, you know how valuable having a private restroom is. Every couple of weeks, we’d have the opportunity to connect with our supporters, talk about the show, the impact of the arts on our community, making the arts accessible to all, and engaging children in a novel way of learning.

While these interactions were certainly not as deep as one-on-one visits with our donors, it was a consistent touchpoint throughout the year where they got to see the impact of their philanthropy.

Now, maybe you’re thinking – that’s great for the performing arts, but I can’t have a donor lounge at my hospice organization, or my homeless shelter.

Well, it’s not about having a donor lounge. It’s about finding an opportunity to connect with your group in a meaningful way at scale. Many hospice organizations participate in the We Honor Veterans program. What if, as part of your honoring program, you did a ceremony once a month for your Vets and invited your donors to not just attend but to participate in this honor? What if, with your homeless shelter, you invited your donors to join program participants for a pancake breakfast or peanut butter and jelly dinner once a month?

The point is that it’s not about the luxury of the event, it’s about connecting the event to the purpose of your organization. How can you bring your donors into the fold of the work you are doing, at scale?

Imagine the power of these interactions. Instead of just writing a check, your donors are actively engaging with your mission. They’re seeing firsthand the difference their support makes. For example, at a hospice ceremony, donors could hear stories directly from veterans or their families about what the program means to them. They might even participate in pinning ceremonies or help in other meaningful ways that show their tangible impact.

At a homeless shelter, a shared meal can be a profound experience. Donors get to see the faces and hear the stories of those they’re helping. They can witness the smiles of children and the gratitude of parents, creating a strong emotional connection to the cause. These experiences can deepen their commitment and make them feel truly part of your mission.

These kinds of events also offer great storytelling opportunities for your organization. You can capture photos, videos, and testimonials that not only highlight the impact of your programs but also showcase the involvement of your donors. Sharing these stories through newsletters, social media, and annual reports can amplify the sense of community and shared purpose among your supporters.

And let's not forget the ripple effect. When donors are genuinely moved by their experiences, they are more likely to talk about it with their friends and family, potentially bringing new supporters into your fold. They might even become more involved, offering their time, expertise, or additional financial support.

So, whether it's a special ceremony, a community meal, or another creative idea that fits your mission, think about how you can create regular, meaningful touchpoints with your donors. It’s not about how much money you spend on the event, but about how deeply you can connect your donors to the heart of your organization’s work.

Remember, stewardship is about nurturing those relationships, showing appreciation, and continuously reinforcing the impact of your donors’ contributions. It’s about creating experiences that remind them why they support your cause and inspire them to stay committed for the long haul. So, let’s reimagine our approach to events and find those unique opportunities to steward our donors in a way that is both impactful and sustainable.

The second area where I think events can be truly great is fundraising—but specifically, focused on acquisition. You're probably going to shoot the messenger on this one, but hear me out.

A while ago, I was working for an Association Foundation. If you’re not familiar with that term, think of it like the Association of Fundraising Professionals (AFP), and then there is the AFP Foundation, which supports the philanthropic work of the Association. I was working in a similar Foundation. The Association would host two conferences a year, and we would host a silent auction at our booth to raise funds. After the first year, and trying to move auction items across the country to display at the conference, then figure out shipping for people who didn’t get their items at the conference… I never wanted to do that again. So we started looking at other ways to engage with conference attendees.

While many ideas were considered—from galas to dances, to pool parties, to on-site raffles—none of them really seemed feasible or worthwhile. In a last-minute Hail Mary (be proud of me for knowing a sports term), we discovered that The Alamo would host private tours after hours as long as we could guarantee a minimum number of people in attendance. It was super affordable and the best part – we literally had zero logistics and planning to do with the event. We just had to sell tickets and get everybody to the event. The venue took care of everything else.

So what was our strategy behind this type of event? Well, at both conferences, the Foundation had very low engagement with the attendees. Many of the people who attended didn’t know who we were, or that their professional membership association even had a Foundation. So getting them to engage in one of these events at least opened the door to getting to know us. Whatever our cost for the event was, we doubled that for our ticket price, and I think we were consistently able to keep the tickets under $50 for attendees, so it wasn’t a huge burden for them to participate. But I think having that cost of entry was super important. If it had been free to attend, we would have had people who were much less attentive there; they wouldn’t have bought into the idea that they were helping support their Foundation. And for us, it was really key that they bought into the idea that they were contributing, they were making a difference, and that they were now a donor. We would always time it so that about halfway through the event, we would have the CEO of the Association speak to attendees about the work of the Foundation, and thank them for their support. Then at the end, just before everybody could leave, the Director of the Foundation would say a few short—key word here being short—words, thanking everybody for their support, inviting them to attend future events, and to be on the lookout for news in their email inboxes about the priorities that the CEO shared. It became a low-investment way for us to get really great donor acquisition and to start building our community with conference attendees.

So, if you’re wanting to really grow your network of donors, invite them to participate in anything that you’re doing. After the tour of The Alamo, we did a tour of a chocolate factory in Orlando, we took them on a private ride on the High Roller, which is the Ferris wheel in Las Vegas, as well as a VIP Bowling Experience in Las Vegas. None of these events were tied to the mission of the organization, and I think having something fun to do eased a rejection point, where if it was too closely tied to our mission, people would have felt too much like outsiders to really participate. But by having it as a fun event, where we began introducing our work to them, they were much more receptive to it. It’s important to remember to meet people where they are in their journey with our organization. And for some people, if they aren’t even aware of us, we need to eliminate all barriers that might make them feel like they don’t belong at the event. Do something that people want to be a part of… then slip in who you are and what you do, and celebrate them for starting on their journey in supporting your organization.

Seriously, within two years, we went from having 35 people in attendance and still selling tickets at the conference, to selling out our events with hundreds of attendees more than a month before the conference began. Our events would sell out during the early bird registration period because people just had such a great time at our events.

But did that translate to them staying connected to the Foundation and becoming a donor? It absolutely did! After our events, many people would continue giving small amounts annually, a few signed up to be monthly donors, but a surprisingly large number of people ended up giving $1,000 or more when we launched our first operating endowment campaign for the Foundation. Make your acquisition events easy for yourself, and super fun for your attendees. Be gentle on your pitch but make them feel like a million bucks for giving. You’ll be surprised at the response you get.

Remember, donor acquisition events are not just about raising immediate funds; they are about creating memorable experiences that forge strong connections with potential donors. These events should be easy to manage and fun to attend, reducing the logistical burden on your team while maximizing engagement. By making the experience enjoyable and ensuring attendees feel valued and appreciated, you set the stage for long-term relationships and future support.

So, let’s rethink our approach to fundraising events. Focus on creating opportunities that are engaging, easy to manage, and make attendees feel special. By doing so, you’ll not only raise funds but also build a community of passionate supporters who are eager to continue their journey with your organization.

The third area where I really like events is for community building. When I was working at hospice, the Community Relations Manager and I had an opportunity to completely reimagine one of our events. It was a small lantern floating ceremony that we did in the stream in the park. There was a 5k run/walk, live music, hot dogs, and people could decorate paper lanterns that we would float down wooden boats in the stream. It was a fine event, about 300 people would attend each year, mostly families that had lost a loved one in the previous year, and a few people that came back every year.

One of the big issues we had in hospice was that people were afraid of our organization. Within the community, so many people had the misconception that only when grandma or grandpa were knocking on death’s door did they bring them to hospice so our nurses could give them the shot to put them to sleep forever. We had to change this perception of what hospice was at a huge scale, and we had to focus the purpose of the event on making sure people understood what hospice was actually about.

The event was our Celebration of Life, and luckily for this event, we lived on the coast, so it was easy for us to change the event from the small stream in the park to a beautiful ocean bay, where we could accommodate so many more people. Also, the whole purpose of releasing the lantern into the water was a symbolic gesture of letting go of the grief for your loved one that is no longer with us. At the park, we couldn’t do that because the riverbanks were so steep people were toppling into the river. But now, at the bay, people could walk in from the beach waist-deep and release their lanterns themselves; it was such a healing moment for people. But we had to find ways to bring in different parts of our community, so we cast a wide net. We reached out to motorcycle clubs to do a motorcycle rally covering our entire service coverage area. We gave them flags they could attach to their bikes emblazoned with our company logo, and they rode out to one of our most rural communities to meet with the people there, have a hamburger and hot dog lunch, and meet with patients and families in the area. The people of the community were so excited to have ANYTHING happening in their town; it was such a treat for them to have the bikers show up.

Then we reached out to different faiths and cultures to make sure we were being culturally inclusive of all the people we served. We reached out to the Buddhist community to do the Bon Dance at our event. These festivals evolved in Japan as a way to assure departing souls that all is well among the living. It was a way to honor and recognize your ancestors for the sacrifices they made in their lives so you could have the wonderful life you’re living now. We reached out to a local halau to perform the hula to bring history to life, genealogy, prophecy, and the tales of those who came before. We had tons of food trucks there to help feed the attendees, because it’s never really a celebration unless there is food. For a modest donation, people could get a paper lantern that they could decorate with images, symbols, and messages to their loved ones that we would float later in the evening. Then, as we approached dusk, we would welcome the Hawaiian Kahu, a spiritual leader, to blow the conch shell and gather everybody for the spiritual blessings. We had the Christian leaders giving their blessings. The Kahu gave a Hawaiian blessing. The Buddhist leaders gave their blessings. The Jewish leaders gave their blessings too. Then, the only noise that filled the air was the Hawaiian nose flute as everybody lined up with their lantern and boat and walked along the shore for the Lights of Remembrance and to release their lanterns into the ocean as the sun set. We even brought out the kids from the Youth Challenge program to help the kupuna, the elderly, in and out of the water, giving these kids a real focus and purpose which lifted their spirits and self-confidence. Once the last boat was launched, everybody joined hands along the shore to sing Hawaii Aloha, which is typically sung at the end of both large and small gatherings to bring everybody together both physically and spiritually before departing.

It was an incredible event! I remember the first time our Community Relations Manager pitched it to me was in front of a donor we were working on to be our Presenting Sponsor. We all had goosebumps as she shared the vision. Having just joined the organization the month prior, once we got back to our cars, I said, “This is amazing. How much of this do we already have in place?”

“None of it, yet,” she said. My stomach turned knowing that this event was just four months away. But with such a clear and compelling vision that tied the purpose of the event to hospice so beautifully and was so inclusive of the community, I knew it was something that we not only had to pull off—it was something the community would get behind.

As we were meeting with different partner organizations and potential sponsors, the one question everybody asked was, “How many people are you expecting?” It was a small community, maybe 50,000 people within our service area, and historically the event only had between 200-300 attendees, so we thought we were shooting for the moon with 1,000 attendees. The day of the event came, and it resonated throughout the community so strongly, the police estimated we had about 3,500 people in attendance. It blew everybody out of the water.

There is such a beautiful video of this event, and I’ll provide a link to it on YouTube in the show notes.

So what is the point here? There is no amount of advertising dollars we could have spent to have that level of community engagement and to start shifting the perspective of our community that this event had for hospice. The unpaid media coverage we got for this event, not just in our little community, but across all the Hawaiian Islands, was incredible. The awareness it brought to hospice was beyond imagination. But beyond that, it engaged our community in a way that they had never been engaged before. It has even started to become a draw back to our tiny town for people who grew up there but moved to another island or to the mainland. As an annual event, it became a way for them to honor their parents and grandparents who passed on the island and a way for them to reconnect with their roots.

It strengthened our community ties in a really profound way. Before, when we would ask to speak to organizations, people would do it begrudgingly because nobody really wanted to talk about hospice or the end of life. But now that they not only saw, but experienced the reverence for life, and the celebration and honoring of a life well-lived, community and religious leaders were seeking us out, asking if we could speak to their groups.

It was such a unique and memorable experience that people weren’t going to forget it the way they forget a Facebook ad. It was something that touched their hearts and made an indelible impression on their souls. And after all, isn’t that what we’re supposed to be doing in the nonprofit world? Making tomorrow better than today.

Additionally, everybody that purchased a lantern, we now had their contact information to be able to stay in touch with them, continuing to spread the message of our organization. In follow-up surveys after the event, people were so moved by it. I remember one person writing and saying, “My wife died 9 months ago, and I have been in the deepest grief since then. But this morning when I woke up, for the first time, it didn’t hurt as bad.”

Change your events to things that are going to connect with and resonate throughout your community. Events can be so incredibly powerful if we change our perspective on what they are really great at.

It’s about creating experiences that not only bring people together but also align with the core values and mission of your organization. When people feel a deep emotional connection, they are more likely to stay engaged and continue supporting your cause. So, take a step back and think about how you can reimagine your events to foster a sense of community, inclusivity, and shared purpose. The impact can be truly transformative.

With these big community engagement events, they can cost a whole lot of money to pull off. And that is where I think sponsors become really valuable. While your event might raise some money, I don’t think that is where your focus should be. You need to keep your focus on engaging the community. But sponsors can help you cover the costs of the event… then individual attendees' donations can be icing on the cake.

So first figure out your budget to actually put on the event. Then figure out your marketing and promotions budget for the event. I’m a strong believer that your Presenting Sponsor or Title Sponsor should fully cover 100% of your expenses to put on the event. That’s why they are the Presenting Sponsor because without them, there would be nothing to present.

After that, you might have two or three sponsors at the next tier. The combined support of these sponsors should fully cover your entire marketing and promotion budget for the event.

Now with your top two sponsorship levels all expenses are accounted for. If you want to have more sponsorship levels, that along with event ticket sales becomes your revenue for the event. I’m a big believer in people paying for their own tickets or for premium participation (like being able to float a lantern) at Community Building events. Free tickets from sponsors bring in disinterested individuals. How many donors have sponsored a table at a gala and you never hear from anybody that they brought with them? That’s why it’s important for these attendees to have a bit of skin in the game. When they show up with their money, even if it’s $10, it’s still a buy-in that they didn’t have before. They view their interaction as more valuable than showing up to something that was free.

By structuring your event in this way, you can ensure that it is financially sustainable while maximizing community engagement and support. Sponsors play a crucial role in covering costs, allowing you to focus on creating a memorable and impactful event that resonates with attendees and strengthens your community bonds. Remember, the ultimate goal is to foster a sense of belonging and connection, making attendees feel invested in your cause and eager to continue their support long after the event is over.

So, Ambitious Fundraisers, let’s reimagine our events with purpose and passion. Let's design them to align with our mission, engage our communities, and make our donors feel deeply connected to our cause. Whether it’s through stewardship, donor acquisition, or community building, we have the power to create experiences that are not only impactful but also memorable and meaningful.

Take the time to rethink your approach. Consider the unique aspects of your organization and the interests of your supporters. Be bold, be creative, and don’t be afraid to break away from the traditional formats that no longer serve us. The possibilities are endless, and the impact can be truly transformative.

As you plan your next event, focus on creating those meaningful touchpoints that foster genuine connections. Remember, it’s not just about raising money on the night; it’s about building a community of passionate supporters who are eager to join you on your journey.

If you found this episode helpful, please share it with your friends and colleagues. Let’s spread the word and inspire more fundraisers to reimagine their events and make a greater impact. And as always, I’d love to hear your thoughts and ideas, so feel free to reach out and share your success stories.

Thanks for tuning in to Let’s Talk Fundraising. Until next time, keep striving for greatness and making a difference in the world.