5 Ways to Increase Revenue

Article by: Alison Finkel, Event360

With fall events in full swing, it’s likely that you’re looking for quick and actionable ways to boost revenue. Here are five proven ideas to give an extra boost to your fundraising results this season. These ideas don’t require a strategic shift or a lot of development time. But, they each offer great potential for deeper investment from the participants and donors who are already interacting with your event!

These tips are presented in order from the fastest and easiest to implement to the ones that may take a little more investment and integration on the part of your team. Good luck and have a great event season!

1. Bump up the suggested donation giving levels on your donation form
Take a look at most event websites and you’ll find the same pre-set suggested donation levels on every page. Usually in $25 increments, this is the default language provided by most event databases.

Event 360 worked with several organizations to see if we could increase average gift size per donor by simply bumping up the suggested donation amounts at each level. In other words, could an organization pick up an extra $5 or $10 per donor by simply changing the preset values on the donation form from $25 to $30 or from $50 to $60?

The answer is YES. In our test, we found that by changing the preset amount from $25 to $35, the percentage of donors choosing $25 fell 10%, but the percentage of donors choosing $35 increased 13%. So, 10% of event donors suddenly gave 10% more just by making this small change!

A word of caution, though: don’t get greedy! Changing preset levels from $50 to $60 gave a bump to average donation size. However, changing preset levels from $50 to $75 had a negative impact. In that test, the use of the $30 donation level increased by 33%!

There is also some question about whether listing suggested levels from high to low or low to high is best. Our tests have revealed that low to high generates better average giving. More important than the order of the suggested levels is having the ‘other amount’ box at the top of the section.

Finally, the use of case statements on the donation page did not show consistent results. A case statement connects the donation to the organization’s mission. An example of this could be “$100 funds the installation of a new toilet in three homes.” If you’re considering case statements, think about how closely they connect to your organization’s mission. If there’s a strong and direct tie in, you may want to include them. However, if it’s a stretch to make a fit, it’s better to leave them out!

2. Sweeten the Deal
Is there an opportunity to reconnect with your event donors for an incremental donation this season? The Susan G. Komen 3-Day offers the opportunity for donors to send a personal note and a custom chocolate to the participant they’re supporting in exchange for an additional donation.

The ‘ask’ with this program is extremely unique; the 3-Day isn’t asking for an additional donation to that participant’s fundraising account. Instead, they offer a highly personal and one-of-a-kind opportunity to connect with a loved one or teammate while they’re on the event. 

3. Ask Participants to Top Off Their Registration Fee
What percentage of your event participants visit the website exactly once when they register? Chances are, it’s somewhere between 75% and 90%. Make the most of this interaction because it’s the only chance you’ll have to connect with them, not just as a registrant but as a fundraiser!

Include a section on the registration form that provides the opportunity for the participant to make an additional donation when they register. But, like the pre-set donation levels, you can’t just throw in a generic box on the registration page and expect results. Be sure to include two important pieces of information:

• Make a strong and relevant ask: Why should this registrant also be a donor?
• Provide a suggested and relevant amount to give: What is the right amount based on the ask you just provided?

When Event 360 tested this with one of our clients, they saw great results! The percentage of registrants making a self-donation increased by 12% and the average (mean) donation increased by 5%. In addition, people who make a self-donation at registration are great targets for additional engagement and communications about fundraising.
4. Identify Existing Fundraisers with the Potential to Raise More
Turning registrants into fundraisers is the most difficult challenge for event fundraisers. Your participants who are fundraising have already cleared this hurdle. By raising funds for your organization, they’re demonstrating a connection to your mission and the desire to do more than just participate. Is your event doing all it can to promote fundraising among this dedicated group of participants? By segmenting your database and putting together corresponding communications and tools for each segment, you can get more from your fundraising program.

Here are some places to look for key fundraisers among your registrants:

• Repeat participants, particularly those who have participated three or more times.
• Team captains
• Key affinity (grantee, survivor or co-survivor, etc.)
• Anyone who has raised at least $1
• Anyone who has logged in to their online tool center/participant page
• Anyone who gave a self-donation at registration

On one project Event 360 consulted on, just by targeting specific communications and tools to anyone who was sending fundraising emails from their participant account, giving increased 17% in that segment.

Remember that putting together a segmented communication plan goes hand in hand with providing tools, tips and recognition that match each segment. Your organization needs to deliver both in order to maximize fundraising potential.

5. Treat Top Fundraisers Like Top Donors
Most organizations have a fairly robust stewardship program for major gifts and top fundraisers. But, surprisingly, those same organizations don’t carry those programs over from their traditional development activities into their event activities. Just like donors, among event participants, the top 20% of performers are raising at least 80% of the funds.

By setting up a clear engagement and recognition strategy for top fundraisers, your event could see fundraising improvement within this existing group of participants. One project we worked on increased total fundraising revenue by 6% even though registration only increased by 1%. They did this by focusing on providing better tools, recognition and stewardship to their top fundraising group. As a result, 50% of the incremental donations collected on this project came from those participants. This resulted in an increase of nearly $270,000 for the program.

Here are some aspects to consider when developing a program to support top fundraisers:

• Set clear and simple recognition tiers for high fundraising
• Consider what kinds of perks or recognition is a good fit with the program you’re managing
• Increase awareness of top-performer programs
• Increase access to tools and support for this participant group all year round, particularly pre-season. Note that this could include additional investment in staff resources for this group or program.

Fundraising Minimums: Friend or Foe?

Are fundraising minimums a) unnecessary barriers to participation, or b) useful elements of an effective event fundraising strategy? I'll go with Option B.

arial="arial" helvetica="helvetica" line-height:="line-height:" sans-serif="sans-serif">The primary argument against fundraising minimums — and registration fees as well — is that they scare off would-be participants. That's true. And it's a good thing. 

arial="arial" helvetica="helvetica" line-height:="line-height:" sans-serif="sans-serif">When you set a fundraising minimum, you weed out the people who lack the commitment, time or network to make an impact through your event. Raising the minimum might not affect registration numbers much, but you might see more people dropping out once they register. You're left with participants who are more likely to make a real difference for your cause by contributing to the success of your event.

In terms of separating the wheat from the chaff, registration fees serve a similar role as minimums. By setting a price floor, they send a message that the participant experience has value and is worth paying for — uncommitted people need not apply. As a result, you're likely to see a drop in participation but an increase in overall dollars raised.

Sponsors and media may get caught up in high participant numbers. But your event can only succeed if you minimize the number of people making minimal contributions. I'll take a smaller number of high-impact participants over the opposite scenario any day.

Arriving at the Right Numbers
arial="arial" helvetica="helvetica" line-height:="line-height:" sans-serif="sans-serif">There is longstanding research in the consumer space about how prices create perceived value. It's the same with events. When we tell a participant they can come for free, how much do you think they value the experience? 

Once you've decided to have a fundraising minimum and/or registration fee, determining the figures is an art and a science. First of all, see what similar events in your area are doing. Second, compare your event with similar events and consider whether you offer any additional value that would justify higher numbers.

Finally, if yours is a well-established event, look at past performance. If participants generally reach the minimum with little trouble, maybe it's time to up the ante. Perhaps you can raise the minimum across the board. Or, maybe there are certain obvious breakpoints where you can push the minimum higher and create communities of "super performers" within your event.

In some cases, conversely, you may want to drop the minimum to make it more attainable — e.g. if very few participants are activating. With the proper messaging, this can reset the participant mindset around the importance of raising funds and foster a fundraising culture.
One note of caution: Don't adjust the minimum every year. Through strong execution of a recognition program around fundraising, you'll make successful achievement of certain goals attractive to some participants. Constantly changing the goal minimizes its meaning and could be demotivating.

Regarding registration fees: We've used price elasticity models to help determine the figure at which we begin to lose too many participants to make it worthwhile. You, too, should use financial models in setting that price point.

It All Comes Back to the Mission
As you can probably guess by now, I'm a strong proponent of always having a registration fee and fundraising minimum (whether it's required or strongly suggested).

It's easy to justify a registration fee because it helps a worthwhile nonprofit like yours to cover the cost of holding the event. No one can argue with that logic.

A fundraising minimum, in contrast, is all about helping your organization meet its mission — and you should articulate this point to participants. For example, "By raising $750, you'll fund six months of lifesaving medications needed by someone battling this disease." That's a tangible, mission-related outcome that participants can get their arms around.

At Event 360, we believe fundraising minimums and registration fees make good financial sense. In fact, every time we've seen a minimum and/or registration fee implemented, there's been an improvement in overall event performance. Take the chance and see for yourself!
Vice president, fundraising strategy Meghan Dankovich serves as the lead for many of Event 360's consulting engagements, striving to help nonprofits exceed their event fundraising goals. Her expertise includes strategic planning, implementation of qualitative fundraising work and developing successful quantitative approaches for collecting and analyzing event-related data.

Event Registration Fees: To charge or not to charge?

And now for a great post on one of my most favorite debates to have in the nonprofit world - registration fees.  Coming from three different organizations who do not charge a registration fee, I am personally ALL for them.  I was apart of one organization who tested out using a registration fee of $15 - just $15!  And we saw substantial growth in net profits.  This day in age, I think people almost expect registration fees and it helps them understand that this event is indeed a fundraiser.  Too many individuals come to fundraisers and do not contribute towards the end goal - of raising money for the cause... meanwhile, they are stocking up on the free food, t-shirts, and give-a-ways.  I understand the possible downsides of charging a registration fee - less attendees and the possibility of people paying the registration fee and not fundraising a cent more... but I would rather have 100 individuals at my walk, who care about my cause and have demonstrated their commitment to my cause, than 500 individuals who don't fundraise or donate even a dollar.  I think it's a debate of quality vs. quantity.

It is one of the most popular and hotly debated questions in the world of walkathons and athletic event fundraising: to charge or not to charge.  While the classic answer – “it depends” – holds true, if your run, walk or ride does not currently have a registration fee, it's time to consider it--because people who pay to play also tend to show up to play.

Too many fundraising events tolerate a large percentage of non-performers. A successful fundraising event requires a strong fundraising culture. A registration fee helps set an expectation by requiring something of the participant up front. This will guarantee a certain level of income for the event by ‘weeding’ out the non-performers and raise the awareness and mindset that the cause is important, money is needed to take action to help the cause, and there is value to being part of the event. Positioned correctly, such a fee can have a positive effect on fundraising performance, while at the same time decreasing event support costs by reducing the number of non-performing participants. In fact, all of the clients we interviewed who charged a registration fee were positive the fee resulted in more committed fundraisers.

Another benefit of charging a registration fee is that participants who pay a fee tend to actually show up at the event. While our data set did not include actual attendance figures, we heard time and time again in the interviews that participants who pay a registration fee are more likely to physically show up at the event. If one of your goals is to make a public spectacle with lots of people, be cognizant of the effect a registration fee can have on physical attendance as well.

However, there are two caveats with registration fees. The first is that while events that do charge a registration fee see higher fundraising growth, they also see slower participation growth. If you do not charge a registration and your event is relatively mature or you are happy with the rate of participation growth, you should consider implementing a fee. Most organizations position the fee solely as a way to cover the costs of the event. However, if your event is very small, or it is more important to you to rapidly grow the participation, you may want to hold off on implementing a registration fee.

The second caveat is that participants who pay a registration fee do not necessarily fundraise, so don’t think that you can rely on this correlation to guarantee participants who also fundraise. In fact, it is common for as many as 60% to 70% of paid registrants do no fundraising. All participants should be encouraged to fundraise and provided the tools to be able to articulate “the ask” for your organization, regardless of registrations fees.

Ultimately, registration fees seem to be beneficial to events success, but be careful! Analyze the median and average funds raised per participant after each event to set the fee at an appropriate level that encourages participation. 

Findings

• The average amount raised is significantly higher for nonprofits that charge an event registration fee.
• Our data set included information on registration fees collected as a part of participating in the event.  We found that the majority of organizations charge a registration fee. In fact, for every organization that does not charge a registration fee for their events, there are three organizations that do.
• Registration fees are trending higher each year. The average registration fee in 2008 was $19, and has grown an average of 5% each year.
• The average amount raised is significantly higher for organizations that charge a registration fee.   
• The online registration numbers for events that do not charge a registration fee grow consistently year over year, whereas the registration numbers for events that charge a registration fee do not.

-Jeff Shuck, Event360 Blog

Adapted from Join the Race: A joint study by Convio and Event 360 with support from the Run Walk Ride Fundraising Council, analyzing the best practices for increasing performance of nonprofit team fundraising events. Download the full white paper here.