Fundraising is the cornerstone to the sustainability as well as the growth of a chapter. It not only generates funds for your chapter, but also serves as part of a public relations plan. Every bake sale, garage sale, or car wash means more exposure for the chapter on campus or in the community. For this reason, fundraising activities must be well planned and effectively implemented.

Development of fundraisers is very similar to developing a marketing strategy. When developing a sales plan, marketers use the “marketing mix” (product, price, place and promotion). Careful planning using the marketing mix can also result in more successful fundraising activities for chapters.

Product

Arguably the most important aspect of developing a fundraiser is offering a good or service that is in demand. Just because a fundraiser is easy to do, such as a bake sale, or a sidewalk sale, doesn’t mean it is going to be effective. If there is not a demand for what a chapter offers, there is a distinct possibility the chapter will lose money instead of making money. The main focus for fundraisers should be on the quality good or service can be offered rather than the process of making money. If a product is not in demand, then there will not be much money made. Determining what products will be in demand is probably the most important yet difficult task.

Research
The first step to identifying the right product for a fundraiser is research. The most effective source of information is directly from the mouths of other students. A simple questionnaire or comment box is actually a much cheaper alternative than depending on chance for a successful fundraiser. Using the information that is gathered will help in deciding on a product, and will usually lead to effective fundraisers since “in demand” products can be offered.

Watch the Trends
New fads come and go like the seasons; for this reason, it is important to watch out for what is popular and what is not. Keeping up-to-date with the latest trends helps provide ideas for what students will buy. Offering products that are no longer popular can kill a fundraising effort, and end up costing the chapter more money than they will make.

Price

Once a product or service has been chosen, then it is time to set the price. Prices can make or break a fundraiser. Regardless of the quality of the product, if the price is too high, not many will be sold. There are a few factors that should be taken into account when setting the prices.

Method of Payment
There are various forms of payment in regards to fundraisers. Pledges are recurring forms of payment to an organization by an individual. This form of payment is usually rare, and often involves more paperwork than other forms. Donations are a more common form of payment that is given without the exchange of a good or service; it is a voluntary gift. Set prices are the most common means of payment during fundraisers. Consumers pay a specific price for a good or service that is set by the chapter.

Start-up Cost
If the cost of organizing a fundraiser is high, then the price for the goods or services must be higher as well. To keep prices down, look for inexpensive or free ways to start your fundraiser. Members may be able to bake cakes, or offer some other skill to minimize start-up costs. Lower start-up costs equal more money that is made by the chapter.

Place

Many times, the product or service offered is only as good as the placement. Fundraising, like real estate depends heavily on location, location, location. A well developed fundraiser in a high traffic area or market can result in major profit for a chapter.

Location
Conducting a fundraiser in a high traffic area can greatly affect the amount of money that is raised. The more people are exposed to the fundraiser, the higher the number that will donate, or purchase your good or service. Determining the perfect location for your fundraiser is as easy as knowing where the majority of the students on campus walk.

Timing
Having a fundraiser at the right time can help make it a success. If the only fundraising that is done is during a campus-wide event, then other clubs who are raising funds will cut into your profits. While it is good to participate in these events, they should not be the only times that your chapter raises funds. Plan an event when no one else is doing a fundraiser on campus, and then you will not have to worry about competition from other organizations.

Promotion

Even the best fundraising event can turn south if there is not adequate promotion of the event. Effective promotion will inform others about the fundraising event as well as generate interest.

Advertising
Advertising is a broad approach to informing others about a fundraising event. Usually the message is broad, but usually effective in generating interest. In most cases, advertising does require a cost that would be taken from the overall profit of the fundraiser, but the benefits generally out-weigh that cost. A popular place to start advertising is a campus newspaper, or the events calendar of your campus.

Personal Selling
This is where the heart of a fundraiser is found. The face-to-face interaction with the donor/buyer is very important. The members working at a fundraising booth or event act on behalf of the chapter. They are essentially the face of the chapter, and many times a smiling face can encourage some one to donate or to purchase what is being offered through the fundraiser.