how to raise the money you need to win your election · events, including how to hold events that...

How to Raise the Money You Need to

Win Your Election

By Joe Garecht

www.LocalVictory.com

Class Guide #5:

The Complete Guide to Holding Successful

Fundraising Events for Your Campaign

© 2016 by Joe Garecht. All rights reserved. 2

Welcome back to our class How to Raise the Money You Need to Win Your Election. I hope

you enjoyed last week’s class materials, where we talked about how to send out successful

fundraising letters for your political campaign.

In this week’s class guide and podcast, we’re going to be talking about political fundraising

events, including how to hold events that raise more money and take less time and stress to

manage.

Remember, if you have any questions about what you are learning, please feel free to e-mail me

at any time at [email protected] and I would be happy to answer!

Holding Profitable Fundraising Events for Your Campaign

Fundraising events are a staple for almost every campaign. Whether you’re a major statewide

candidate running half-million dollar galas, or a small-town campaign holding you’re a family

friendly barbeque fundraising lunch, chances are, if you are raising money to support a

candidacy, at least part of your fundraising is through events.

Here’s the problem, though: far too many campaigns are simply winging it when it comes to

events. These campaigns are missing out: they’re spending too much time and far too many

resources to generate less revenue than they otherwise could. The purpose of this class module

is to change that. It’s time to supercharge your fundraising events.

Why Fundraising Events Work

It is extremely important, as you set out on this path, to understand precisely why events work as

a fundraising method, and why they are so popular with attendees and campaigns alike.

Knowing these reasons will help your campaign run events that appeal to guests and meet the

needs and goals of your campaign:

1. People Like to Feel Like Part of a Team

Donors love to go to events because it makes them feel like part of a larger team that is working

together towards a common goal. They enjoy being with a group of like-minded people, and

delight in spending time with their friends in a social setting. Getting to shake the hand of the

candidate, hear a rousing speech, and talk to the campaign’s staff and volunteers all make people

feel like they are a big part of your team.

2. People Like to Show-Off

People like to be seen as leaders, as important contributors to society, and as someone who is “in

the know.” For this reason, if a person is involved with your campaign as a donor, committee

member, supporter, or volunteer, they will want to not only attend your event, but also bring

along friends and co-workers. Bringing others makes the event more enjoyable not only because

it is fun to be social with good friends, but also because the donor who invites others will be seen

as a leader and / or knowledgeable about political issues

mailto:[email protected]


This tendency, of course, is good for your campaign because it will allow you to reach into your

donors’ networks to find more fundraising prospects through your events.

3. All Hands on Deck Efforts Work

At many campaigns, events are “all hands on deck” efforts. This means that everyone… your

staff, your finance committee, your donors, your volunteers… everyone pulls together to meet

the fundraising goals for the event. There’s something about these types of efforts that just

“works.”

Think about it this way: how many times have you been part of an event that was exhausting and

draining… one where everyone was working together, but where there were late nights and

nearly-missed deadlines… and where the minute the event was over, you tiredly crashed into

bed. But, when you awoke the next morning, you realized that you had hit your fundraising goal

for the event, and felt great about it? For me, that has happened numerous times.

There’s just something about events that has the ability to pull everyone together, constantly

remind them of the goal, and keep the deadlines front and center. When everyone is rowing in

the same direction, constantly communicating, and has a firm end-date (event day!) in mind,

things seem to get done.

Cost / Benefit: Should You Really Have That Event?

While many events do work, for the reasons noted above, it doesn’t mean that every event is

created equal. I can’t tell you how many campaigns I have worked with that ran the same event

cycle after cycle, and each year it took dozens of hours to pull together, only to raise a relatively

small amount. Yet, when I approached these campaigns about taking the event out of their

fundraising plans, they balked. “But we always run this event!” “People love to come to our

annual chicken dinner!” “What will the donors say!?”

As a campaign organization, you can’t afford to place any of your fundraising tactics “off limits”

for discussion. Every single line item, and every use of time and resources, should be scrutinized

to see if using your staff or money differently would yield better results for your campaign. This

is doubly true of events.

Events take time. Lots and lots of time. And usually, events cost money… perhaps a significant

amount of money, depending on the type of event you are holding. Because events take lots of

time and a significant amount of money, it is doubly important that you perform a cost / benefit

analysis on your fundraising events to see if you should continue to hold them.

The Costs of Holding an Event

First, take a look at the costs of holding the particular event you are thinking about holding.

How much money will it cost to run the event? How much time will it take your staff and

volunteers to put the event together? How much money could your staff be raising doing other


things if they were not working on this event? How will holding this event impact your donor’s

ability to give to your other fundraising methods throughout the campaign cycle?

The Benefits of Holding an Event

Next, take a look at the benefits of holding this particular event. How much money would you

like to raise? How likely are you to be able to raise that amount? How many new donors will

you acquire by holding this event?

The Number One Question to Ask

In summary, I believe that the number one question you should be asking when doing a cost /

benefit analysis for your event is this: If I spent the exact same amount of money and staff time

on a different fundraising tactic, would I raise more or less than I would with this event? (If

your goal for the event is to reach new donors and raise money, then ask if you could reach more

new donors and raise more money with a different tactic). If they answer is yes, then you should

consider not holding your event.

For example, let’s say that your campaign holds a cocktail event that you spend $20,000 and 50

staff hours to pull together and run. The event raises $50,000 so your net revenue for this event

is $30,000. Then, you notice that your candidate’s personal fundraising asks have really been

paying off – you notice that for every hour your staff spends working with the candidate on his

personal fundraising asks, the campaign raises $1,000. If you are spending $20,000 and 50 hours

to run an event and net $30,000 but your staff could be spending 50 hours to make phone calls

with the candidate and net $50,000 then you should re-consider whether or not this event is

worth the effort.

It is my belief that many campaigns are holding events that they just shouldn’t be holding,

because they are spending too much money and time for too little return on that investment.

Fundraising Events vs. Non-Ask Events

It is important at this point to recognize the difference between fundraising events (which are

being covered in this module) and non-ask events. The purpose of fundraising events is to

generate income for your campaign. The purpose of non-ask events is to generate new leads, or

prospects, for your campaign.

Non-ask events are meet and greet events and other small events where the purpose is for the

candidate to meet new potential fundraising prospects, talk with them, and then eventually (days

or weeks after the event) call them to ask them to make a donation.

You will lose money on non-ask events, because they take time and money to organize, but

should make up for it on the backend by eventually making asks to the new prospects who

become part of your funnel. Fundraising events, on the other hand, should make money. That’s

not to say that you shouldn’t be performing a cost / benefit analysis on your non-ask events as


well… you should! Don’t spend $10,000 to find 2 new prospects, unless those are really, really

good prospects. Everything your fundraising operation does should be subjected to a cost /

benefit review to see if there is another, more effective and efficient way to raise the same

amount of funds.

Choosing What Type of Event to Host

Every type of event takes preparation, planning, and hard work. It is up to each campaign to

decide what types of gatherings would appeal to their own supporters. Choose what type of

event you want to have based on your prospective attendees – the type of event would be most

appealing to them? Remember, the goal of a fundraising event is to raise money. In order to do

that, you will need to get as many people as possible excited about attending your event.

While there are an almost infinite number of event types you could host, some of the more

popular categories include:

Informal Dinners – This type includes spaghetti dinners, buffets, beef and beers, etc.

Formal Dinners – You might also choose to have a more formal, sit down dinner.

Receptions – This is one of the most popular types of events, and includes cocktail hours, hors

d’oeuvres receptions, meet and greets, etc.

Barbeques – including clambakes, chili cook-offs, outdoor and indoor events, etc.

Breakfasts – Sit down or buffet

This is just a small sampling of the types of events you may choose to hold. Remember to keep

in mind the fundraising goal for the event, the people that you are inviting, and the facilities that

are available when choosing the type of event you are planning to host. Choose a method that

fits your audience, your budget, and your fundraising goals.

Putting Together an Event / Host Committee

In my experience, the number one mistake that campaigns make that leaves money on the table

at events is the failure to form a strong event committee (sometimes called the “host

committee”). Event committees can make or break an event.

First, understand that when I am talking about an event committee, I am not necessarily talking

about a committee that does the actual work of planning, setting up, breaking down, and working

the event. You may decide to have a committee like that, or to make the people that do that part

of your overall event committee, but that is not what I mean when I say that a great event

committee can make or break an event.

What I am talking about, instead, is a committee whose primary responsibility is to raise money

for the event by selling sponsorships and tickets. The event committee is a fundraising

committee, and putting the right one in place is extremely important.


Why is an Event Committee Important?

Let’s face it, events are hard work. If you want to raise a ton of money at your next event, you’re

going to need help, even if you have a large staff or dedicated group of volunteers. You’re going

to need people who feel like they are part of your team, who commit to helping you raise money

for the event, and who get their friends, neighbors, colleagues, vendors, clients, and associates

involved in your event.

Your event committee is a fundraising network… the members of the committee should be

expected to open up their networks and rolodexes to the campaign for the purposes of the event.

Who Should Be On Your Event Committee?

Anyone who supports your campaign, is willing to fundraise, and has a good-sized network that

they are willing to open up to your campaign. Ideally, your event committee will include a

Chairperson who is super-supportive of your campaign and who has a massive network, as well

as 5-25 (or more) of your donors and supporters who are ready to raise money for the event.

How Do You Get People to Join Your Event Committee?

You ask! Seriously, in order to get people on your committee, you’ll need to treat this like any

other fundraising ask… look at your donor list to see who might be a good candidate. Call or

meet with each of these people to tell them about the event, why the event is important, and what

is expected of event committee members. Then ask them to join.

What Should Your Event Committee Do?

Fundraise! Make sure that everyone on your event committee knows that their primary goal is to

fundraise for the event. Sure, you want their advice on the event itself, and welcome their good

ideas, but you also need help raising money.

Be sure to tell your committee what the ultimate fundraising goal is for your event, and how you

expect that goal to be met. For example, you may say that the goal for your fundraising

barbeque is to raise $5,000 for your campaign. Of that, you expect $1,500 to come from host

committee or leadership donations, $1,500 to come from ticket sales for the event, etc.

Once you tell your committee what your goal is, be sure to give them the tools that they need to

reach that goal. They should have all of the collateral materials, tickets, event invitations,

sample scripts, and everything they need to help you raise money.

You should also track the work of the committee, whenever possible. Ask who they are

approaching, track how many tickets each member sells, etc. I also suggest you hold regular

meetings of the whole committee to talk strategy, check on progress, and offer thanks, praise,

and advice. If your committee is a particularly large one, you can also consider breaking the


committee down into smaller sub-committees, with each holding its own meetings and focusing

on different areas of the event.

How Should You Recognize Your Event Committee?

It’s very important to recognize the hard work of your event committee, and to let them know

just how crucial their role is in your event’s overall success. In addition to your written and

spoken words of thanks, you can consider doing things like putting their names on the event

invitations, thanking them as part of the event program, offering them special lapel pins or a

number of free tickets for the event, etc.

An Important Note about Event Committees

No matter how great your event committee is, never rely on them 100%. Once, I watched as a

campaign (against my advice) relied entirely on its event committee to fundraise for the event.

The staff handled the event hall, catering, and invitation printing, but the event committee, led by

the event chair, was supposedly handling all of the sponsorship and ticket sales.

Three weeks before the event, the campaign manager finally realized the mistake, when he found

out that only $1,500 in leadership donations had been pledged (against a $10,000 goal).

Thankfully, the staff took over ticket sales, the candidate started making calls, and by working

the phones and holding a coordinated series of meetings with larger donors, the campaign was

able to sell out the event and beat the ticket sales goal, which partially made up for the leadership

donation debacle.

You want (and need) to put together a phenomenal event committee for your next affair. You

want them to set big goals and raise a lot of money. But your staff should also be working on the

event, contacting your donors and selling sponsorships, as well as tracking the progress of the

committee.

Setting the Ticket Price

Setting the ticket price for your event is an important decision. To set the price for your event,

let the type of event and the fundraising goal be your guide. Establish a ticket price based on

how many tickets you think you and your host committee will be able to sell. For example:

If your fundraising goal is $1,500 and you sell 20 tickets, the ticket price would need to

be $75 to meet your goal. However, if you sell 50 tickets, the price would only need to

be $30.

Similarly, if your fundraising goal is $5,000 and you sell 25 tickets, the ticket price would

need to be $200. However, if you sell 100 tickets, the ticket price could drop to $50.


Tiered Events: Appealing to Different Donors

One great way to maximize the revenue at your fundraising events is to make sure that every

event you hold offers multiple tiers / giving levels. This is important, because it expands the

reach of your event to include more donors at different wealth levels.

For example, let’s say that every year, your political party committee offers a sit down dinner

event that serves as your large annual political fundraiser. The event costs $100 per person.

This year, why not add a pre-event at a higher cost? Perhaps you could have a $500 VIP cocktail

reception before the event. Or maybe your campaign is supported by a local celebrity chef, and

you can offer a $1,000 hors devours reception at the chef’s home prior to the dinner (assuming

he or she lives close). Be creative when adding levels.

Of course, giving levels can also go the other way… depending on the size of your campaign,

you could have a $25 per person cash-bar event prior to the dinner, to hit lower level / grassroots

donors, followed by the $100 dinner. Or do all three: a $25 party, a $500 VIP cocktail reception,

and a $100 dinner.

Supporting different tiers in this way ensures that your event is accessible to smaller level

donors, mid-level donors, and high-level donors. Of course, how many levels you can add and

what the giving amounts are will vary depending on your campaign.

Be sure not to have too many levels – I once went to a fundraising event geared at the investment

community where the organizers got cute and offered 10 different giving levels (not 10

sponsorship levels, mind you, but 10 giving levels with pre-receptions, seating options, lapel pins

for the event… the works). All it did was confuse donors, and many who should have been

$1,000 level donors looked at the massive reply card listing those levels and simply checked off

the lower ($100) option. Don’t make the same mistake. Most events are good with 2 or 3 levels.

Rarely should an event use 4 or more.

Planning the Event

There are several key considerations that need to be made when planning the actual affair:

Location – Will the event be held in your home or at another location? Will you need to

rent an outdoor event tent or will additional seating be needed to accommodate guests?

Food and Beverages – Will the event be catered? If so, by whom and how much will it

cost?

Parking – Does your location have sufficient parking for event attendees?

Dress – Will your event be casual, cocktail, business or formal attire?


Another key planning consideration is the program (the flow of the event). The usual structure

of a campaign fundraising event is:

1. Guests arrive and pay at the door or are marked off on the guest list

2. Guests enjoy meal, cocktails, buffet or whatever food and beverages are being offered.

3. The host (or a person the host designates) gets the guests’ attention, thanks the host

committee for its hard work, and introduces the first speaker.

4. The speakers offer brief remarks to the guests and thank them for coming.

5. Guests continue to enjoy beverages and entertainment, if offered.

6. Guests depart.

This sample program is merely a guide. Because each campaign and event is different, your

event structure may differ from the sample program above.

Event Speakers

Early in the planning process, it is important to determine who will be speaking at your event.

Speakers are more than just a program-filler. Often, choosing the right speakers will allow you

to sell more tickets. People are drawn to events where they know the speaker and are eager to

hear from him or her.

One of the best speakers for your event is your candidate. Be sure to have your candidate deliver

brief remarks at as many of your events as possible. Other possible speakers for your event

include civic and community leaders, well known business people, elected officials, etc. You

may choose to have more than one individual speak at your event. It is best not to have more

than three speakers, however, and it is important to let every speaker know that only brief

remarks re required (3-5 minutes).

Ticket Selling Structure

While there are any number of ways you could collect checks and set up your ticket selling

system, there are really only two methods that work efficiently and effectively. It is up to your

campaign to set up a ticket selling system to be followed by your ticket sellers and host

committee.

The first possible way to handle selling tickets and collecting checks is by selling actual,

tangible tickets to your event. With this scenario, you will need to print up tickets well in

advance and distribute them to your host committee for sale. You should also be prepared to

mail out the tickets as you sell them. If you choose this route, make sure you keep a watchful

eye on your ticket sellers and committee to make sure they actually sell the tickets and deliver

the money to you on a timely basis. You should collect all of the money for all of the tickets

they sell and have it in your hands on event day.


If you are selling actual tickets, set up a ticket collection table at the entrance to your event. At

this table, a volunteer or member of the host committee collects tickets and distributes nametags.

This volunteer should also be prepared to sell tickets to spouses and friends that ticket buyers

have brought along.

The second method (and probably the best way to go) is by using a “guest list.” In this scenario,

you use a “reply card” or “reply envelope” to collect checks. When you mail out an invitation,

you include a reply envelope that allows the person to write on it the number of people attending

and place a check inside. Your host committee can hand out these reply envelopes to their

contacts and have them either mail them back to the campaign, or give them back to the host

committee member.

When you receive the check and response form, add the attendees’ names and the number of

guests to a guest list. Then, set up a table at the door and when guests arrive, they can sign in

and receive a nametag as a visible sign that they have paid.

You may also decide to sell using both of these methods. No matter which of these structures

you choose, be sure to keep accurate records and a keen eye on your ticket sellers.

Finding Attendees

One of the most important ways to get people to make a donation and attend your fundraising

event is by setting up a host committee, as noted above. For some events, your host committee

alone will be able to sell enough tickets to meet your entire fundraising goal. There are several

other methods, however, that you can use to get contributors to attend.

Personal Calls

The single most effective way to get people to come to your event is with a phone call. People

find it easy to say “no” to mailed invitations, but it is hard to say “no” to a friend or contact who

calls on the phone and invites you to come to their event.

One of your first activities after setting up the event structure should be to sit down and list the

names and contact information of everyone you know who might attend (and who could afford

to attend), including family, friends, business and social contacts, etc. Then take a few hours per

night, or on the weekend, and call each one individually to ask them to attend.

When you call, tell them about the event and why you are excited about it, and make the sell: ask

them to pledge to come. When they say “yes” ask them to mail you a check as soon as possible.

You should also mail them a reminder the next day just in case they forget to mail the check. If

you don’t receive the check in a week, call them again just to make sure it is on the way.


Mailed / E-Mailed Invitations

Another worthwhile method, though less effective than phone calls, is mailing and/or e-mailing

out invitations to your event. This is a great tool for getting people you don’t know quite as well

to attend. Just make sure you mail out the invitations in plenty of time to get a response – send

them at least 4-5 weeks before the event, and don’t be afraid to follow up a week later with a

phone call. Calling the person after sending them an invitation can double the number of people

who actually buy a ticket.

Turning Pledges into Dollars

No matter what type of event you are holding or how well you know the people on your

prospective attendee list, there are some people who will pledge to buy a ticket when you call

them but will, for whatever reason, not send i a check. Here are some strategies for making sure

that everyone who makes a pledge actually buys a ticket:

1. Follow Up Immediately

The most important strategy for turning pledges into dollars is to follow up immediately with

every person who makes a pledge. Each potential donor who promises to buy a ticket should

receive a thank you note from the host that mentions the event, the date the pledge was made and

the amount of the contribution promised.

2. Make it Easy

Whenever you follow up on a pledge, make it easy for people to send you a contribution. Send

them a pre-addressed envelope along with the thank-you note, and along with any other follow-

ups you make. You can also consider sending postage-paid envelopes to those who make

pledges thus making it even easier for them to respond.

3. Follow Up Again

Many hosts are wary of sending out reminders or making follow up calls to potential donors for

fear of offending them. Don’t be. Remember, people who make pledges to buy tickets have

invested in you and your event. More often than not, the reason pledged contributions don’t

come in is because donors simply forget. Use common sense, but don’t be afraid to remind

contributors one, two, three times or more about pledges they made

4. Make it Personal

The single most effective pledge collection tactic in your campaign’s arsenal is a personal call

from the host (or the candidate). When letters and reminders don’t work, the host should make a

call to the donor thanking them for their pledge and letting them know why their contribution is


urgently needed by the campaign. Whether used as a last resort or as a simple follow up, a

personal call from the host is your number one tactic for turning pledges into dollars.

For Those Who Can’t Attend…

If someone tells you they can’t attend your event, don’t be afraid to ask for a contribution

anyway. Soliciting contributions from those who can’t attend, but would be willing to help, can

go a long way toward meeting your fundraising goal.

Focusing on Leadership Gifts

No matter what type of event you are running, you should be soliciting leadership gifts for the

event. These are sometimes called “host committee gifts” or “leadership committee donations,”

and are similar to the event sponsorships sold by non-profits for charitable fundraising events.

Every event has room for leadership gifts or event sponsors, no matter how low key or low

dollar. Generally speaking, these types of donations can make up over 60% of the revenue for

many fundraising events, and the more money an event raises, the higher the percentage that

comes from large gifts and sponsorships. You’ve probably seen these types of donations listed

on political event invitations. They usually say something like:

Event Hosts: $5,000 – Includes photo with candidate

VIP Guests: $2,500 – Includes VIP meet and greet

Attendees: $1,000 / Person

Leadership gifts are an example of high-end event tiers, as mentioned earlier in this class

module. Are you selling sponsorships or using leadership gifts at your events? (Note that for

most political campaigns sponsorships are personal donations, not corporate or business

donations, due to campaign finance laws. This is different from non-profit fundraising events,

where almost all of the sponsors are corporate or business sponsors).

Adding Other Revenue Streams to Your Event

In addition to ticket sales and sponsorships, there are a number of ways to add additional revenue

streams to your fundraising events. Some may not be allowed by your local campaign finance

laws and regulations, so be sure to double check before adding any of these to your event. Here

are a few to consider:

Live or Silent Auctions

Auctions are perhaps the most popular “add-on” revenue stream at modern fundraising events.

Many campaigns have had a great amount of success with adding live and/or silent auctions to

their events. Well run auctions can raise five or six figure sums, but can be incredibly time

consuming to prepare for and to operate.


Raffles

Holding a raffle at your event can add both revenue for your campaign and entertainment value

for your guests. Your best bet is to find 2 or 3 highly sought after items that businesses agree to

donate and to sell tickets at $5, $10 or $20 per ticket (in order to sell tickets at such a high price

point, the items will need to be pretty good).

Upsells

I’ve seen several campaigns successfully using upsells to raise more money around their event.

These upsells can be items written right onto the event program (e.g. “Check this box to purchase

a raffle ticket at the discounted price of $18 along with your event tickets”) or can happen right

at the event (e.g. setting up a table to sell tickets to your next event, two months in the future, for

25% off the face value).

Minimizing Event Overhead Costs

Many campaigns forget that if they normally spend $1,000 to raise $5,000, and can cut their

event costs so that they are only spending $800 to raise that $5,000, it’s like raising an additional

$200 for your campaign. I always recommend that campaigns take a close look at their

fundraising events to make sure they are not needlessly spending more money than they have to

in order to raise the same amount.

After the Big Day: Follow-Up Matters

Following up with event donors and attendees after your event is particularly important because

events are such great ways to find new prospects. It’s very likely that a number of the guests that

attended the event (whether on their own or as part of the networking efforts of your event

committee or staff) are brand-new to your campaign. Assuming you were tracking event

attendees and taking down information at your registration table (and you should be!) now you

can start following up with these new prospects.

My suggestion would be to send them each a letter thanking them for attending, and including a

brochure for your campaign. This should happen almost immediately after the day of the event.

Then, perhaps a week later, follow up with a call from one of your fundraising staff members,

again thanking the person for coming, and inviting them to come to a tour of your campaign HQ

or other non-ask event opportunity. This gets them immediately into your cultivation pipeline.

You should also follow up with your event committee and major sponsors for the event to thank

them for their help and let them know what a success the event was, as well as send out thank

you letters to every single person who donated money through the event, including all of those

who bought tickets. This is a crucial “donor touch” that reinforces your campaign’s connection

with your event donors.

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