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Why Fundraiser Profit Percentage is Misleading

By Clay Boggess on Aug 4, 2015
Why Fundraiser Profit Percentage is Misleading

Why you shouldn't get hung up on profit percent

Does a higher profit percentage always mean more money for the group? Many school fundraising companies promise that if you work with them, you’ll be guaranteed the most profit. Just look on the internet. Companies are offering up to 90% profit. If you Google “100 profit fundraising” you’ll find several search results. But are these offers too good to be true? Are they even scams? Actually most aren’t. Many of these companies offer legitimate ways for groups to raise money.

A better question to ask yourself though is which company will help you bring in the most money. Many groups unfortunately get caught up in the profit war by only considering companies that offer the highest fundraiser profit percentage. What they don’t realize is that other things are being sacrificed along the way. Successful sales reps that end up winning the bidding wars are usually the best at disguising the downsides. There are pros and cons to everything so let’s take a closer look at why you may not want to automatically choose the company that offers the most profit percent.

Quality Fundraisers Make More Profit

The best companies offer great fundraising programs and then help you personalize them to best fit your needs. It starts with a strong brochure that offers a large variety of consumer-based items at fair prices. An exciting prize program will then motivate your students to get out and sell. Finally, make sure that you have access to effective sales tools that will help drive sales by increasing student participation and the number of items sold per seller.

A Slow Nickel Beats a Fast Dime

A good rule of thumb to go by is the higher the fundraiser profit percentage, the lower the quality of the prize program. You don’t want to offer cheap prizes to your students and parents because this is what helps drive the success of your sale. In other words, you will never be able to take profit to the bank. You can only take money.

So instead of focusing so much on profit percent, focus more on how you can bring in more sales. You’ll never be satisfied getting a large cut of a small money pot.

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