When I read the Fort Myers News-Press story about the cancellation of an annual fund-raising gala that nets $100,000 for the Edison Ford Winter Estates Foundation, I thought I had read something similar a while back.
Turns out it was a Gala Economics post from Seth Godin.
In searching for Seth’s post, I found this response from Leslie Allen of Front Range Source.
One key point that Leslie surfaced: how much staff time is consumed in managing the gala and is the cost of that staff time calculated in the net revenue the gala represents.
As the U.S. continues to dig out of the recession, as donors scrutinize how their funds are used and as nonprofits are pushed into greater transparency, won’t we need to look at the real costs of all our fund-raising efforts.
Galas. Direct mail solicitations. Telemarketing. Charity golf outings.
Obviously, it takes money to generate donations. But if you are not already accurately accounting for the true costs of your efforts (including the cost of staff time), you may well face pressure such as that in Fort Myers to eliminate your “galas.”