Tag Archives: who pays fundraiser costs

Should I absorb the cost of the fundraiser supplies or should the organization?

This can be a bit of a hot topic when it comes to fundraising.  Some organizations cannot afford the initial outlay for the supplies required (order forms, possible samples or flyers) and therefore expect the consultant to pay.  But at the same time, the consultant should not have to be out the cost for possibly several hundred dollars if the organization is not successful.

The best solution I have heard to this is to have the consultant charge the organization for the supplies and they will get the funds back in their fundraiser.

For instance, supplies cost $100.  The consultant would get the $100 from the organization to pay for them.

Then, when it comes time to settle up, let’s say the organizations proceeds would be $1000.  The consultant may then choose to give the organization back the $100 for the supplies as the consultant is able to write them off as a business expense.

Another option would be to go half and half.  Using the example above, the consultant would give the organization back $50.

You could also give them a credit for all the supplies they turn back into you after the fundraiser is over.  Continuing with the previous example, if they spent $100 for the supplies, and they gave you back $25 worth of supplies (have to be in new condition) then you would give them $25.  Those supplies could then be used for another fundraiser.

I suggest that the organization pays for the supplies up front as it will be an indication of how serious they are in making money with their fundraiser.  There are horror stories out there of consultants who bring in the supplies for a 100 sellers from their funds and then the organization doesn’t bother or only get a few hundred dollars in orders.

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