Setting a Fundraiser Goal

Before you determine your method of raising money, you need to set a goal amount for your fundraiser. This will help to determine what type of fundraiser will best serve your needs.

Your fundraising goal includes your desired profit plus expenses. Even if you have the required capital to pay the expenses of your fundraiser out-of-pocket, you should take those expenses into account when setting your fundraising goal.

When you set your monetary goal, be sure to include an allowance for all foreseeable expenses. As stated above, you should figure out your goal by using this formula:

[desired profit + expenses = fundraising goal].

Fundraiser Expense Budget

In order to make a rough estimate of your expenses, you need to consider the following:

1. Where will your fundraiser take place?
2. Will you provide food and beverages, and if so, who will provide them?
3. If you are renting a venue, what are the rental fees?
4. Do you need any special equipment for your event?
5. If you are running an online fundraiser, are there any commissions or membership fees?
6. What taxes will you need to pay on your earnings?
7. Will you be selling customized products at your event?
8. What will be your advertising budget?

The best (though not the easiest) way to handle expenses is to, whenever possible, solicit donations of services for your event. This will allow your budget to stretch further, and will help maximize the profits from your fundraiser. It is important to think creatively when planning your fundraiser, and keep in mind that the smaller your expense budget, the more profit your fundraiser will generate.

For example, if you are hosting a bike-a-thon, instead of renting bicycles, you can have everyone bring their own and ask local bike shops to loan you just a few bikes for people who don’t have them. This way, you don’t need a budget for bike rental.

Sponsors

Event sponsors are businesses or individuals that donate part or all of the costs for your event. Normally sponsors are given some kind of recognition for their contribution. Sponsors should be mentioned in all printed advertisements for your event.

How to Get Sponsors

In order to convince people and/or businesses to sponsor your event, you should prepare a marketing letter. Marketing letters contain basic information about your cause and the details of your event, your goal, and most importantly, what they can do to help.