By Jill Robisch, First Vice President & Manager, Nonprofit Division
As the nonprofit sector continues to adapt to a post-pandemic world, many organizations have resumed their large-scale fundraising events, aiming for a return to normalcy. However, with increasing uncertainty surrounding state and federal funding, is it time to rethink the traditional approach to these high-cost, resource-intensive fundraisers?
The Return to Large-Scale Events
In the immediate aftermath of COVID-19, many nonprofits pivoted to virtual or hybrid events, discovering new ways to engage donors and reduce overhead costs. Now, with in-person events making a strong comeback, some organizations are eager to revive the familiar gala, auction, or large benefit dinner. These events often serve as significant revenue generators, brand builders, and community engagement tools.
Yet, the landscape has changed. The unknown impact of potential shifts in government funding, inflation concerns, and shifting donor expectations mean nonprofits must be more strategic than ever about how they allocate fundraising resources.
The Uncertain Future of Public Funding
Federal and state funding for nonprofits remains a moving target. With economic fluctuations and shifting legislative priorities, nonprofits reliant on government grants and subsidies may face unpredictable funding streams. Organizations that previously used large fundraisers to supplement government dollars may now need to explore whether these events can reliably fill financial gaps in a sustainable way.
Balancing Costs and ROI
Large events require significant investment—venue costs, catering, entertainment, staffing, and marketing add up quickly. Nonprofits must critically assess whether the return on investment justifies these expenditures. While some events yield high revenue, others may break even or operate at a loss when factoring in hidden costs such as staff time and donor fatigue.
Instead of defaulting to large-scale fundraisers, nonprofits should consider a diversified approach, blending traditional events with:
- Targeted Major Donor Engagement – Intimate gatherings or one-on-one donor stewardship may yield higher returns with lower costs.
- Corporate Partnerships – Engaging corporate sponsors for year-round giving, rather than a one-time event sponsorship, can provide more sustainable funding.
- Peer-to-Peer Fundraising – Empowering supporters to raise funds through social networks can create broad engagement with minimal upfront costs.
- Recurring Giving Programs – Encouraging monthly donors builds a stable revenue stream, reducing reliance on annual fundraisers.
The Future: Quality Over Quantity
Rather than focusing on returning to the way things were, nonprofits should evaluate what works best for their specific mission and donor base. This might mean scaling back on extravagant events in favor of more targeted, mission-aligned gatherings that foster deeper connections with supporters.
Ultimately, the question isn’t whether large fundraisers should disappear but whether they should evolve. By reevaluating their role within a broader, more sustainable fundraising strategy, nonprofits can position themselves for long-term success—regardless of the external funding climate.
