What percent of fundraising sales should organizations receive?
This is a question that is not often asked directly to us but I’m sure it’s on the minds of most organizations when they look for a fundraiser. The answer is dependent on the product offered. Between 20% and 90% is common. If you are making less than 20% you will be working too hard and if you are making more than 85% the quality of the product comes into question.
There are more important factors to take into account:
1. How easy is the product to sell? If you are making 95% on a product and you sell very little, that percentage doesn’t really matter. We are a company that never offers products that don’t work at any percentage and always advise our groups towards the products that will work best for them.
Example: A high school football team is going to have a hard time making their goal with a scratch off card fundraiser even though its 90% profit. This is a fundraiser that is highly successful with the elementary to middle school aged groups.
2. Is it a quality product? Quality is a factor in two ways. If you give them a substandard product, you will have returns or they will never purchase from your organization again. Our goal has always been to offer the highest quality products we can find. Not only will they be extremely happy when they receive their product, they will gladly purchase from you again in the future.
Example: The second year selling, a booster club can double their sales the second year because everyone remembers how great the cookies where from last year’s Cookie Dough Fundraiser. Girl Scouts earn more selling cookies in one month then most organizations do in an entire year because of the quality.
3. How much can you earn? This come to your product and market size. Some products work well in certain markets and you’ll need to take these into consideration if you want to earn more money with the least effort.
Example: If you are in a small town, you will want a product that you can sell to friend and family outside your community as well as in. In this case, a Jewelry fundraiser is perfect. They can order right out of an online catalog. If you live in larger town or city, the discount card fundraiser is an easy sell because every person will want their own and with lots of business to choose from they have great value.
Keep all this in mind when choosing your fundraiser and your group will do well. If you need help choosing a fundraiser that will be a success for your group, feel free to contact us, we are glad to help. Big Dog Fundraising – (866) 582-3597
Percentages of sales offered to non-profit groups vary widely depending on the type of products being sold and the services offered by the fundraising company. Too often, fundraising coordinators equate financial success directly with the percentage of gross sales that their group will keep. Rather, volunteers should be focused on how the combination of product quality, company services and percent of profit to be received will all work together to help the organization meet its total fundraising goal. See Fundraising: A Handbook on How to Succeed section Reaching Financial Goals and Edge article on Percentage Profit.