Why School Fundraising Profit Percent is Overrated

When selecting a school fundraiser, most fundraising sponsors feel that the single most important goal is to go with the company that will give them the highest possible profit percent. It’s the first question that many people ask when they call us on the phone. Let’s face it, everyone wants to raise as much money as possible and an easy way to accomplish that is by getting a bigger share of the pie, right? Well, not so fast. Keep in mind that higher profits also mean:

Limited Program Options
If you are receiving a higher percentage of the total amount raised you can expect to have a limited number of programs that the company will be able to offer your fundraising group. For example, you may not be able to sell items like:

• Frozen food or cookie dough
• Jewelry or candles
• Customized items like designer bags or sports mugs

Keep in mind that you will most likely make more money by selling more desirable items that people will want as opposed to the cheaper products that many fundraising companies are able to offer at a higher profit. This is true even with a lower profit percentage.

In addition, you will not be able to motivate your sellers with some of the better prize programs like a Super Party, sportswear or cash. By offering more exciting prize programs you will motivate more students to sell additional items out of their brochure.

You Take Money to the Bank, Not Profit Percent
You’ve seen the ads on Google. Get up to 95 or even 100% profit! But how much do you end up raising with their fundraiser? Most of the time, it’s not very much. Which scenario is better?

1. Raise $500 and receive 90% profit?
2. Raise $3,000 and receive 40% profit?

Overconfidence and Complacency

We have seen many fundraising groups falsely think that the hard part of their fundraiser was over simply because they received a higher profit percentage. Unfortunately they ended up not put the necessary time into promoting their fundraiser and as a result they ended up not raising very much money at all. Unfortunately they figured that they would make more money simply because they received a higher profit percent.

When considering a fundraiser that will maximize profits, groups should instead focus on how well their product will be received in their community as well as how they plan to motivate their group to sell. Focusing on these two things will end up making far more money than just focusing on trying to obtain a higher profit percent. In the end, you will usually get what you invest in!