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Typically, the person in charge of fundraising for your organization has never managed a fundraiser before, the reasons for which will be explained shortly. Do not worry though, the process is simple and we are here to help answer the question “How does fundraising work?”
Because of the nature of fundraising for most groups, with members joining and leaving the organization every year, the people that manage the fundraisers are often thrust into their role with little or no experience. As fundraising experts, we are asked how a fundraiser works, what kind of costs there are, how much profit your group can make, and many other questions. Here, we will explain just how a fundraiser works.
The process of raising money can be incredibly simple and our programs are designed to make your life as a fundraising coordinator as hassle free as possible. The basic gist of a fundraiser, whether it is a pre-sell (brochure based and no money up front) or a direct-sell (you purchase the items before the fundraiser), is that you are selling items and collecting money from your customers. You will make a fundraising profit based on the difference between what you sell the product for and what the products costs you.
For direct sell fundraisers, such as our Smencils fundraiser, you are buying the items before the sale. This means you will need to have some cash on hand for your initial purchase but it also means that every penny you sell during the fundraiser stays with the group. These fund raisers work great because you have the product on hand and the customer gets their item immediately. Most direct sell fundraiser items are relatively inexpensive and are easy for your sellers to carry with them.
For pre sell fundraisers, you have no costs to get started and you collect your money during the sale. At the end, you place one big order and only pay the wholesale cost for the items you have already sold. The great thing about these fundraising ideas is that they are free to start and you have no risk of losing money. Our most popular pre sell fundraisers are the Go Green fundraiser and our flower bulb fundraiser. The profit margin on these fundraisers typically depends on the number of items you sell although we do offer some flat rate profit brochure fundraisers.
There are also unique ideas like our Online Donation Fundraiser that is conducted almost entirely online and features no products at all. Learn about doing a unique program like that by visiting the Online Donation Fundraiser page.
And that’s really all there is to it. Not too bad huh?
Hopefully this helps you understand a little better the basics of doing a fundraiser. If you have questions or need more help getting started please feel free to call us at 877-448-9746.
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