Why Fundraising Profit Percent is Overrated

Your sale needs more than a high-profit percentage.

When selecting a fundraiser, many sponsors automatically go with the company that gives them the highest profit percentage. Sometimes it's the first question we get asked when someone contacts us. They've reviewed the information provided by all the school fundraising companies and most likely feel that there's not much that distinguishes one.

Some companies anticipate this, and to get the business, they increase the percentage amount. Let's face it, everyone wants to raise as much money as possible, and one way to accomplish that is by getting a larger share of the gross sales. So why, then, is fundraising profit percentage overrated?

Limited Fundraising Options

If you're receiving a higher profit percentage, you can expect a limited number of programs the company can offer. For example, you may be unable to sell items like frozen food, cookie dough, or candles. These are typically higher quality items people like but must be offered at a lower profit percentage.

Groups usually make more money selling desirable items than lower-quality items that can be offered at a higher profit.

Student Motivational Factors

In addition, you won't be able to motivate your sellers with better prize programs like a super party, sportswear, or cash. By offering more exciting prize programs, you will motivate students to sell additional items from their brochures.

Money is Better than Profit

You've seen the ads on Google. Get up to 95 or even 100% profit! But how much do you end up raising with their fundraiser? Most of the time, it's not very much. Which scenario would you rather have?

1. Raise $500 and receive 90% profit?
2. Raise $3,000 and receive 40% profit?

Higher Profit Percent Breeds Complacency

Many groups think a higher profit percentage automatically leads to a successful sale. Unfortunately, these groups usually don't put the necessary time into promoting their sale and end up not raising much money. Regrettably, they figured they would make more money simply because they received a higher profit percentage.

When considering a fundraiser that will maximize profits, groups should instead focus on two things:

1. How well your community receives your product.
2. How do you plan to motivate your group to sell?

Concentrating on these things will make you more money than just focusing on fundraising profit percentage. You always get out what you put in.

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.