Hosting Fundraisers that are Both Fun and Profitable
Posted by Jenna Sheehan on November 19, 2025
Fundraising events are often designed to be enjoyable, with elegant venues, delicious menus, and lively entertainment. A memorable experience can strengthen your supporters’ loyalty and even attract new donors. But while fun is important, never lose sight of the primary goal: raising money. To ensure your event is profitable, you need a strategic approach that balances excitement with financial discipline.
Start with Clear Goals
Before diving into planning, set a realistic fundraising target. This should include anticipated contributions from attendees, sponsorships, and any pre-event solicitations. Use past events as a benchmark but consider aiming for a stretch goal, perhaps 5% to 20% higher than last year’s results.
Build a Smart Budget
List all potential expenses, such as:
- Venue rental
- Catering and beverages
- Entertainment and speaker fees
- Decorations and prizes
- Invitations and marketing
- Event coordination services
- Insurance coverage
- Permits (e.g., for raffles or sales tax)
Review your list carefully for cost-saving opportunities. For example, if you’ve previously booked a luxury hotel, explore alternative venues that may offer discounts in exchange for exposure. Even when you secure deals, include full-price estimates in your budget for future planning.
Secure Strategic Sponsors
Sponsors can significantly reduce costs and boost your nonprofit’s visibility. Focus on quality over quantity — seek partners whose brand aligns with your mission. For instance, a children’s clothing company might be ideal for an education nonprofit. Leverage your board members’ networks to identify strong prospects. Just be cautious about overpromising benefits like advertising, which could create tax complications.
Follow the 30% Rule
While it’s true that you need to spend money to make money, keep expenses in check. A widely accepted guideline is that fundraising events should cost no more than 30% of net proceeds. This ensures your efforts deliver meaningful financial impact without overspending.
Final Thoughts
A successful fundraiser blends enjoyment with efficiency. By setting clear goals, managing costs, and cultivating the right sponsors, you can create an event that delights attendees and strengthens your organization’s financial health.
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As a member of the Firm’s audit department, Jenna supervises the conduct of audit fieldwork for nonprofit and governmental organizations. She has expertise working with a considerable number of public and private foundations, human service agencies, and other nonprofit organizations in the areas of audits, Single Audit, reimbursement, tax and information returns, and financial reporting