3 Fundraising Fallacies Worth Shattering

Why you need to stop focusing on these three things.

Over the years of working with various groups, we have a pretty good idea of what will help them succeed. Some sponsors initially have misconceptions that they assume upfront will help their sales, but in reality, these things. However, they sound logical and have been proven not to make a difference most of the time.

The hard part is attempting to get people to understand that their views and opinions may not always be correct. We feel it's important to share what we've learned, although ultimately, it's up to the sponsor to make their own decisions.

Here are three fundraising fallacies to watch out for that you may initially assume are always accurate.

1. More Fundraiser Percentage means More Money

Someone once said, "You don't take profit to the bank. You take money." This seems obvious to some; however, it's probably the most misunderstood concept for sponsors to grasp. School fundraising companies understand how most people think and promote higher profit percentages to lure them in. What companies don't tell you, however, is that in exchange for a higher profit percentage, you may receive the following:

• The same brochure but with higher priced items.
• A cheaper prize program.

What's more critical than percent profit is ensuring that you:

• Pick the best possible brochure based on what will sell in your community.
• Select a better prize program to motivate your sellers to increase sales.

After all, you can receive the highest profit percentage in the world, but if your students don't sell, having a higher profit percentage won't matter. Groups that receive a higher profit percentage consistently bring in less gross dollars than those who receive a lower percentage of the sale. Perhaps it's because groups receiving a higher percentage of profit don't feel they need to work as hard, or maybe it's because groups receiving a lower percentage are making up for it with better incentives.

2. Selling Lower-priced items leads to More Profit

More people can afford less expensive items, but why should they? Again, what's more, selecting a brochure that will appeal to more potential supporters is essential. Remember that you make less money from lower-priced items, so you must sell more to make the same amount. Your sellers will need to work harder to make more sales.

3. Raise Additional Money by Fundraising Longer

If your group sells a certain amount after a couple of weeks, won't they sell more if you give them a month? The answer is probably not. Most sales are made during the first 3-4 days. Allowing more time than usual won't bring in additional sales. The reason is:

• Students will lose focus.
• They will procrastinate.
• More selling time means less urgency.

When planning a campaign, these three fundraising fallacies may appear to give you an advantage but usually don't work out that way. We have lots of evidence that supports that the opposite is true.

See our brochure fundraisers.

Author Bio

Clay Boggess has been designing fundraising programs for schools and various nonprofit organizations throughout the US since 1999. He’s helped administrators, teachers, and outside support entities such as PTAs and PTOs raise millions of dollars. Clay is an owner and partner at Big Fundraising Ideas.