Nonprofit Galas Breaking Fundraising Records On West Coast

Nonprofit galas in the Bay Area are breaking all sorts of fundraising records this year, bringing hope that organizations could soon be returning to pre-recession fundraising levels.

A report in the San Francisco Business Times reveals that many San Francisco-based organizations are getting a big boost in revenue from their annual galas. For example, Meals on Wheels (MoW) raised almost $2.17 million for homebound seniors at its 26th annual Star Chefs and Vinters Gala in April. That amount was the most ever raised by the organization for that particular event. In total, it netted $300,000 more than last year's gala, as more than 1,000 guests showed up to sample a spread of food made by gourmet chefs.

MoW Executive Director Ashely McCumber told The Business Times that she believed the success of this year's gals stems from a couple of factors: Strong donor relationships and an increased confidence in the economy, as people are feeling more comfortable giving once again. He added that most of the money from the gala came from individuals while corporate donations remained the same. Around 200 businesses and individuals participated in the gala's live and silent auctions.

While Habitat for Humanity San Francisco has not yet had its annual gala, Executive Director Phillip Killbridge told The Business Times that he is confident it will also break fundraising records, especially after Coldwell Banker Residential Brokerage wrote the nonprofit a $25,000 check.

Are your nonprofit galas and special events seeing similar results? Let us know in our comments section.

You can read the full story in the San Francisco Business Times.

8 Negatives Of Annual Galas

There aren't many nonprofits that don't hold annual galas, and there aren't many nonprofit employees that actually enjoy preparing for them.

As was suggested in one of our recent LinkedIn discussion questions, some employees feel an obligation to attend their organization's annual gala even if it's not exactly the way they want to spend their evening. While they are a time-honored method of increasing awareness and raising money, some would argue they aren't really worth all the hoopla.

One person who holds that view is Steve Klingman, who wrote in his book "Fundraising Strategies for Community Colleges" that nonprofits should consider scrapping the gala altogether and replacing it with an annual fund campaign. While he acknowledges the positives of galas -- fundraising, showing the flag, cultivation, recognition, volunteer involvement and people having a good time -- he maintains those good aspects are overwhelmed by negatives:

• A gala event has a low yield as a fundraising vehicle.
•  A gala saps annual fund dollars. Rarely do event-driven programs coexist with robust annual fund dollars.
• A gala pre-empts other fundraising efforts for a significant portion of the year.
• When staff time is added in, net revenue is too low.
• A gala focuses donor attention on the event rather than the mission.
• A gala distracts volunteers from more beneficial involvement. Using them to make annual fund calls is much better use of their time.
• Donors quickly forget a gala.
• A gala is expensive to produce. The cost of such items as dinner, facility and balloons can easily eat up 50 percent of each ticket.

8 Reasons Galas Aren't The Answer

Galas are a time-honored tradition in the world of special events. They are a great way of raising awareness and money for your cause. Yes, a lot of people seem to love going to these ritzy events; but are they really right for your organization?

In his book "Fundraising Strategies for Community Colleges," Steve Klingman argued in favor of scrapping the gala all together in favor of an annual fund campaign. To him, galas are just too much trouble than they are worth for most nonprofits. While he acknowledged the positives of galas -- fundraising, cultivation, recognition, volunteer involvement -- he maintained that they are outweighed by a host of negatives. He listed eight of those downsides:

• A gala event has a low yield as a fundraising vehicle.
• A gala saps annual fund dollars. Rarely do event-driven programs co-exist with robust annual fund dollars.
• A gala pre-empts other fundraising efforts for a significant portion of the year.
• When staff time is added in, net revenue is too low.
• A gala focuses donor attention on the event rather than the mission.
• A gala distracts volunteers from more beneficial involvement. Using them to make annual fund calls is much better use of their time.
• Donors quickly forget a gala.
• A gala is expensive to produce. The cost of such items as dinner, facility and balloons can easily eat up 50 percent of each ticket.

What do you think? Do you agree that galas are simply not worth the time and money, or do you think they still have a place in the special event universe?