What to Know Before Choosing a Fundraising Company

There are thousands of different opportunities out there to raise money for your organization, and there are thousands of companies that are standing by and waiting to help you get started. The first thing to realize however, is that virtually all of these companies, whether they are providing you with candy bars, Christmas cards, scented candles, or some other product, are for-profit companies.

There's nothing wrong with that, but realize that they are in business to make a profit. But, if you play by the rules and select a good and reputable company, then both your needs, and the needs of the provider, will be met.

If you're operating on a small budget, it may be difficult to have a fundraiser which requires you to buy products ahead of time. In some cases, this can't be avoided, but there are plenty of providers out there that will work with you and give you options.

It is very common for these companies to provide you with order booklets from which your volunteers can sell. Once you have taken orders and collected the money, they you place your order--and you thereby avoid having to order everything up front before you have raised any money.

 

However, if this is the model that your provider offers, be sure you are familiar with the product they are offering. It's easy to make something look good in a photograph on the Internet, but what does it look like when you get it in front of you? If there's any doubt, ask the provider if you can order just one of the items as a sample. Often, they will permit you to do this, so you can evaluate it and make sure it is quality merchandise.

You will need some sales material, especially if you are taking orders in advance of receiving the product. Your fundraising provider should be able to provide you with high-quality, color brochures that clearly show the product being offered, and include detailed descriptions of all the options available. They may also provide you with things like order books and log sheets.

 

In most cases, these order kits and sales materials should be made available to you at no cost.

There are so many different providers with so many different products out there, and you shouldn't just always go with the same type of promotion every year. Sure, it may be easy to just decide to sell chocolate bars every year, but you may be missing out on something that could make you a lot more money.

Don't be afraid to try different products. There are probably dozens of other groups in your town that are also selling candy bars and the more common types of fundraising products; take a look around and see what else is out there that is a little different. Something else that hasn't been offered before, may get a lot more attention.

 

Regardless of the product, you should be able to get at least a 50 percent profit; that is, if you're selling the product for ten dollars, you should be able to keep five dollars.

Of course, you want to deal with a fundraising provider that has a good reputation and that you know will treat you fairly. That's precisely why a lot of groups get stuck selling the same thing every year--they have come to trust a particular provider, and so they go with the same thing. While this approach does have some merit, it may limit your fundraising ability.

If you have been working with a particular provider, find out what else they have to offer. They may have several other products available you don't know about, or they may have other divisions or subsidiaries that deal in other types of goods.

 

And of course, always try to check out any provider as much as possible. Do a search on the Internet to try to find out if anybody has made any complaints, and ask if you can talk to one of their other clients. Try to stay in touch with other non-profit groups so you can share information.