The Big Event - An Alternative

The arrival of May in New York means that gala season is in full swing. Every Sunday I open the Times "Styles" section and look at the photos of the week's events. This morning the local news did a piece on the Met Museum's annual Costume Institute gala. Everyone was there -- Madonna, Rhianna, Isaac Mizrahi, and so on. The goal was to raise $7 million. The report did not way whether that goal was reached.

But all is not well in gala paradise.

Along with all these party photos, this Sunday's Styles section also included an article saying that non-profits are having trouble finding corporate honorees -- often going with third and fourth choices. Even worse for the organizations, the honorees are giving less money and sharing fewer contact lists, often not even wanting to approach their company's vendors for support. Some organizations are lowering their fundraising goals for their events, others are canceling them.

Full disclosure, I am not a fan of galas as a fundraising tool for smaller organizations. Yes, I understand they have pr and visibility value. And if a board is both committed to the event and well-connected, they can be successful. However, if the cost/income statements for these events included not just the venue, food and entertainment, but also the amount of staff time spent planning and executing the event -- and the opportunity cost of those staff members not having time for other fundraising -- in most cases the events wouldn't be worth it.

Those organizations that raise a good portion of their annual revenue through big events should continue to have them. Those that don't have an established annual gala might want to wait a year or two to hold the first one.

Organizations that see diminished revenue or are struggling to find an appropriate honoree could should consider taking a break this year. One option to keep some of the event momentum going is to have a "non-event."

Pick a specific project or need, put together a "non-event" committee if you have people who want to help, send out invitations to all prior event contributors and other donors letting them know that this year, in order to save costs, you're not having a big gala, instead you're asking for gifts to support a specific project or organizational need. Instead of spending money on the place, the food, the entertainment, you're going to use all of the money raised to support your organization's programs. Just like you would with your gala, have a follow-up plan to secure donations.

That way you've communicated with your supporters who like to come to events so that if the economy bounces back, you won't have to start again with them. And, even if you raise less money than you would have with a gala, your costs are much lower, so in terms of the net, you might come out ahead.