How to choose the right food for your next sale.
Food fundraisers work well for many groups because they're consumable. Convenience is also a factor because when we buy prepared food from students, we don't have to purchase it from the grocery store and prepare it ourselves. Most nonedible gift items tend to collect dust over time. However, we all have to eat. Thus, there is a built-in natural demand for food items.
Another advantage is that many food sales aren't subject to sales tax. However, it's essential to make the distinction between food that's prepared for immediate consumption and food that's prepackaged. Many states define taxable food as food served on a plate with a knife and fork. In other words, food intended to be eaten immediately is generally taxable, with some exceptions.
In most cases, selling food falls under the nontax category; however, we recommend confirming this with your state's Department of Revenue. For more information on sales tax for food brochure fundraisers, see our tax guide.
In a recent PTO Today article, there are three critical factors to consider before deciding to sell food. One is the quality. If people like how it tastes, they'll be more apt to purchase it the next time. Another consideration is timing. Make sure that no one else is selling a similar item at the same time. And third, you might want to focus on foods with a higher nutritional value if your area emphasizes healthy eating. Here are the pros and cons of 5 popular food fundraisers:
1. Cookie Dough Fundraisers
PROS
Cookie dough usually comes conveniently pre-sliced and ready to go in the oven. And even though you may be able to buy it that way from the store, taste, and quality tend to be better when purchasing from a cookie dough brochure. Otis Spunkmeyer cookies are a well-known case and point.
CONS
Cookie dough fundraising has pretty well saturated the marketplace. Therefore, ensuring that no one else in your area plans to sell it simultaneously is always a good idea. Many groups are also leaning towards more healthy alternatives, although they historically haven't sold all that well.
2. Boxed Chocolate Fundraising
PROS
Chocolates are popular food fundraisers that sell themselves. Boxed chocolate brochures have a higher but affordable retail price than candy bars. Thus, groups make more money per item sold. Buyers can also choose from chocolates, such as chocolate-covered peanuts and pecan caramel clusters.
And in most cases, unlike direct sale items like candy bars, items found in food brochures can be sold on campus during school hours.
CONS
On the contrary, boxed chocolate items are more expensive than a candy bar fundraiser. Candy bars typically sell for $1.00, a convenient price point that makes an 'impulse buy' much easier for many.
3. Prepared Frozen Food
PROS
Prepared frozen food offers convenience to the buyer because, in many cases, you're talking about 'thaw and serve' items, like cheesecakes. Other items like pizzas and burritos only have to be heated. Another advantage is that groups selling from the typical frozen food brochure can offer an excellent selection of items. And since these foods are prepackaged and not ready for immediate consumption, there's usually no tax involved.
CONS
Unlike many other food fundraisers, frozen food cannot be left unrefrigerated for an extended period, even at room temperature. Thus, extra planning is necessary to ensure a smooth distribution of student orders. One thing often overlooked is having a contingency plan for orders that aren't picked up on the delivery day.
4. Food Mixes
PROS
Food mixes take the worry out of delivery because there's no refrigeration required. Many variety food brochures carry specific mixes that otherwise would not be practical, like Louisiana Gumbo and Texas chili.
CONS
Even though food mixes make deliveries more accessible, they're not so convenient once you're ready to prepare them. For example, our cookie mix requires adding eggs and butter before baking.
5. Snack Food Fundraisers
PROS
Snack fundraiser products are also popular because they're convenient and reasonably priced. We all need something quick and easy to fuel our 'on the go' lifestyles. Buyers usually have a good selection to choose from.
CONS
Allergies can concern many consumers, especially with foods containing nuts. It's always a good idea to disclose the ingredients to potential buyers so they can be informed before making a purchase.
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.