Stop Running Events That Cost Too Much

Behind the approach: Fund-raising events cost a lot in time and money, so many groups have been taking a hard look at ways to trim expenses. Others have been working to discard events that weren’t lucrative enough.

What’s working: Father Flanagan’s Boys’ Home (No. 147), in Boys Town, Neb., cut back spending on its big events, especially galas, and told affiliates to do the same. The nonprofit trimmed the number of people invited to some events, reduced many evening events from five hours to two, and instead of renting hotels, asked donors to offer their homes for parties. As an alternative, many of its affiliates started successful salon-style events, and cocktail parties replaced dinners. But Boys Town soon found out that one size doesn’t fit all. Boys Town Nevada, in Las Vegas, held a pool party in 2009 at a casino instead of its full-fledged gala, but donors didn’t like it. So in 2010, the affiliate returned to a more formal event, which was significantly more successful.

Lessons fund raisers learned: Nationwide the effort saved money, but it needed to be flexible. At the pool party, for example people hung out longer, “but then they realized they were hungry,” because only appetizers were served, says Laurie Susie, senior vice president for development. Fund raisers told the Las Vegas group’s board that the event didn’t work as well, and with the blessing from the national office, the affiliate was allowed to do a full-scale dinner for their next fund raiser.

Results: Boys Town last year saved 19 percent in costs, or $97,800, by reducing its gala and event expenses throughout its organization.

What’s working: The Salk Institute for Biological Studies (No. 337), in La Jolla, Calif., slashed a series of dinners, called “A Taste of Discovery,” geared toward donors who gave $2,500 or more because the institute was getting little in return. “People loved to come to them,” says Rebecca Newman, vice president for development, since they featured one of its scientists as a speaker. But because the events were open to anyone, they were not achieving their goal of attracting big gifts. So Salk scuttled the dinners by June 2010. Now it invites a select group of potential donors to lectures from top scientists and invites generous supporters to see scientists at work. “We want to channel those same people with a more interactive experience at the Institute,” Ms. Newman says.

Results: Salk is saving $45,000 to $60,000 a year by not holding the dinners, which cost about $15,000 per event. Ms. Newman says the Institute decided it was smart to let events that were primarily social die and focus more on efforts that make donors more aware of the institute’s mission.

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