It is common for non-profits to engage in ticketed events as fundraisers. As a professional fundraiser, when I look at the ticket prices, I wonder if these events are really fundraisers or if they are “Friendraisers”. If it is a “friendraiser”, is there a strategic plan to engage these new friends beyond a chance to dress-up and eat good food. This is the real opportunity in any event.
I mean, how could you raise money and only charge $35 a person. Then I go to the event, and I understand. Near the end of the event, there is some form of “ASK”, and I shake my head. I shake my head because people search for something to donate, unprepared or confused because they believed their $35 was a donation. Therefore I proffer a formula to help with ticket priceing.
Before I go any further, let me provide some guiding principles for this formula of how to price your ticket. They may seem obvious, but I do not want to assume anything.
- Make sure your biggest cost is covered before you even announce your event. Insure you have a sponsorship(s) that is 125% of your proposed largest expense. Most often this is venue or food.
- If you plan to have a formal ask for donations at your event, you should not be selling tickets. Just inform people that this is a fundraiser and they will be asked to contribute
- Get people’s information! Whether you are selling tickets or not, make sure you are getting people’s information. Your plans for after the event are twice as important as your planning of the event.
Now, here is the formula to price your tickets and why.
[The cost per person for food and drink] x 3 or 4
First, remember you are having a fundraiser. I doubt your goal is to raise as little as possible, or have as many people at your event that can’t afford the real value of the items on your silent auction. I believe you want people with capacity that can give more to your organization. If you need to do a discounted ticket for a select group of people, then do that. Your public price should follow this formula.
1 – The first multiple is just to allow all attendees to pay their own way and cover the costs of food. Yes, you have gotten a sponsor to cover this cost, but still this makes sense. That is why we say 3 or 4. Read on to the other multiples.
2 – The second multiple is for all those other ancillary costs like tables, linens, decorations, audio-visual, etc. Before you know it, all those little extras add up to being a lot of extra money.
3 – The third multiple is for the people and the time that have been invested in this event. Yes, they are mostly or all volunteers, but it is valuable. Just because it was complimentary to your organization, does not mean that it does not offer value to your attendees. According to Independent Sector, the average value for a volunteer hour is $24.69. How many hours were given by volunteers to make this event great!
4 – The last multiple is the actual donation. The part that is attached to the Mission and Vision of your organization and is the value of the impact you are making in the community
The other part of the formula is to promote your mission. A lot of groups have amazing graphics to promote their event, but forget to put the “WHY” in to the promotion. For every time you promote your keynote speaker, or items at your auction, there should be something about your mission. The “why” would someone want to come to and support your event and the impact they are making. This formula is 2:1. You should be talking about your mission twice as much as you promote your event. Engage people to learn more.
Remember, the value of your event is that it is raising money for a great cause. Make sure people understand what that cause is and see value in it. The effort does not conclude when guests leave your event, that is when success begins in turning guests into supporters.
If PB&J marComm can help you with creating a sustainable development plan that includes stewardship of your event guests, please contact us.
