3 School Fundraising Misconceptions You're Not Aware Of

Fundraising fallacies you should avoid.

We've seen a lot in 20-plus years of fundraising. From a technology standpoint, the industry has changed significantly. But one thing remains constant over time. Schools will always need money to pay for extracurricular activities.

When it comes to school fundraising, everyone has their opinions. What works for some may not work for others. For example, socioeconomic conditions vary, affecting what people can afford.

Many ideas are floating around about the best ways to raise money. Working with many groups, we learned a lot. We've developed a pretty good sense of what's needed to succeed. As much as we want fundraising to be easy, it's not. Regardless of what you've heard, if you want to reach your goals, you must put the work in.

Technological advances, like what's happening with online fundraisers, have streamlined the process. But the same basic principles apply, like monitoring your sales progress.

Many sponsors have misconceptions that they bring to the table. And they assume these beliefs will help their sale. In reality, they have not made a difference most of the time.

The challenge is getting people to understand that their opinions may not work. It's important to share what we've learned, although, in the end, it's up to the sponsor to decide.

Here are three typical school fundraising fallacies you need to be wary of.

1. A Higher Profit Percentage Means More Profits

What? This sounds like an oxymoron. You might be scratching your head on this one. Why won't a higher profit percentage always lead to more money in the bank? Many fall into the same profit trap.

This might be the case if fundraising took place in a vacuum. But unfortunately, other variables must also be considered. It's been said that you don't take profit to the bank; you take money. This seems obvious, but at the same time, it's hard for some to grasp.

Companies understand how people think and are thus promoting higher profit percentages. Their goal is to attempt to lure you in. What you may not know is that in exchange for a higher profit percentage, you may receive the following:

• The same product but at a higher price.
• A cheaper prize program in exchange.

What's even more critical than percent profit? Ensuring that you:

• Pick the best possible product based on what will sell in your community.
• Select an effective incentive that will motivate your group to sell.

You may receive a large profit percentage, but if your students don't sell, it won't matter. Many groups with a higher profit percentage make less than those with better prizes. It may be because groups receiving a higher profit percentage don't feel they need to work as hard.

Receiving a high-profit percentage off meager sale results is not very rewarding.

2. Lower-Priced Items Mean More Profit

This might be true in some cases. But again, it depends on your area. More people will indeed be able to afford to buy less expensive items. But some may be able to afford to pay more.

Instead, you should focus on finding a product that will appeal to more supporters. There are disadvantages to selling less expensive items:

• You'll make less money off lower-priced items, so you must sell more to make the same amount.
• Your sellers will need to work harder to make more sales.
• More expensive items may offer better value.
• Only offering lower-priced items may limit buyer options.

Learn why school fundraisers fail with higher profit percentages

3. Longer School Fundraising Sales Make More Money

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, in most cases, not necessarily. Sales typically happen during the first 3-4 days. Allowing more time than usual won't always bring in more sales. The law of diminishing returns comes into play. The reason why you might want to avoid this strategy is that your students might:

• Lose focus.
• Procrastinate.
• Have a lower sense of urgency.

It's easy for people to think these three fundraising fallacies offer an advantage. But unfortunately, it usually doesn't work out that way in the end. We have lots of evidence that supports that the opposite is true in most cases.

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.