Elements for Raising Money Through Product Sales
By: Vickie Mabry

Schools and youth groups raise nearly $2 billion each year through sales of popular consumer products. The money helps pay for computers, field trips, athletics, music, art and other programs that educate and enrich young lives -- important programs that are not always covered by shrinking school budgets. While there are a number of fundraising options available -- bake sales, car washes, charity events, straight donations -- product sales are an effective and financially rewarding approach to fundraising.

Millions of parents and young people participate in product fundraising programs each year. Recent research found 75 percent of Americans -- and eight out of 10 parents -- purchase fundraising products each year. The vast majority of fundraising sales are made to family and friends. (NOTE: Fundraising companies sponsoring organizations emphasize that children should not be allowed to sell door-to-door unless directly supervised by a parent or adult.)

Americans agree that product fundraising is an important resource for today's youth. More than just raising money to pay for valuable programs, a well-run fundraising drive also can be an experience that educates, builds self-esteem, provides community service, and promotes school, organization and community spirit.

Not very long ago, conducting a campaign to raise money was intimidating for most organizations and their volunteers. Campaigns were time-consuming and difficult to coordinate with a limited guarantee of success. Today, there are hundreds of fundraising products and programs available that maximize an organization's financial return and minimize the time investment for volunteers and advisors. Better still, many products and programs have been tested over time and are reasonably guaranteed to succeed. Behind these successful fundraising programs are professionals in product fundraising -- companies that experienced fundraising organizations have come to rely on as partners in meeting their financial goals.

There are some 1,500 fundraising companies operating in the United States and Canada . Most are local, independent, small business owners, mid-size companies with small sales forces or larger regional and national companies with local sales representatives. These companies work directly with schools, PTAs, booster clubs, church groups, scouting groups and other not-for-profit organizations to help them raise funds. Many have been in business for decades. They supply products and a variety of valuable services -- including sound advice on all the facets of fundraising.

As the product fundraising industry matures and more fundraising products, programs and services are introduced, fundraising sponsors have more decisions to make. First, one must understand and follow any special guidelines for fundraising that have been established by the school. Then, one must decide which company will best meet the needs of the school? What product(s) will work best as a fundraiser? And, volunteer safety should always be top priority.

Finding a Professional Fundraising Company
Selecting the right fundraising company is a critical step toward your program's success. In some areas, dozens of companies offer fundraising products and services. Though the competition may create certain advantages for the fundraising organizer, it also increases the need to completely evaluate a company before choosing a program. It is a good idea to pare the list of candidates down to two or three companies before scheduling appointments to allow ample time for thorough interviews.

A critical consideration when evaluating a company is service. Let the company explain what they will do to make your fundraiser a success and, importantly, make your job easier. Allow them to demonstrate their expertise and professionalism. To help you and the company determine whether or not your group requires a full-service program, know your financial goals upfront. The company will also want to know the age and number of your volunteer force. Armed with answers to the following questions, fundraising sponsors can make solid decisions for their group:

• How long has the company (and the company's representative) been in the product fundraising business? The size of the company and the mechanics of the program are less important than the company's financial stability, experience and reputation.
• What value-added services does the company offer; and how much do these services cost? (e.g., assistance to volunteers, communicating with parents)
• Is volunteer safety a key element of the program? Does the company discourage unsupervised door-to-door sales? Will children be encouraged to focus their efforts on family and friends? Will adult supervision be stressed? How will these points be communicated to children? Parents?
• How will the company tailor the program to fit your organization's particular needs or requirements?
• Are teachers encouraged to take advantage of the educational elements (e.g., oral presentation, math, and marketing skills) of the fundraising program? If so, how?
• Does the company understand and comply with your state sales and use tax laws and how these laws impact your program?
• What is the company's order turn around time? How are products shipped and how will it impact delivery logistics?
• How responsive will the company/representative be should problems arise?
• What is the company's policy if your group receives damaged products? Are returns accepted?
• How does the company handle back orders?

Ask for and check references (e.g., other groups, parents, school administrators). Find out if the company delivered on promises. Did they meet, exceed or fall short of expectations?

The personal relationship between the organizer and the company is critical. Because the organization's reputation is at stake, fundraising coordinators must be able to completely trust the company and know that it will operate with integrity and high ethical standards.

Also important is how the volunteers perceive the company and its representative. Is the representative sincere? Does he or she take a personal interest in the group's goals and concerns? Does the person really believe in the products and services offered? Volunteers will respond best to individuals they trust, admire and respect.

Choosing the Best Program
There are a number of fundraising programs on the market today. They vary not only in the products offered, but also in how they are sold, packed, delivered and distributed.

Groups can order products and programs through sales people who represent national or regional companies; local fundraising companies who market exclusively in a particular area or region; or from direct mail catalogs. There is no single preferred source for, or type of, fundraising program.

Often, it is the fundraising coordinator's experience and resources that determine what programs are most appropriate.

Direct Sales
Direct sales programs generally involve the following: schools order an inventory of products; products are distributed to volunteers who sell products directly to the consumer; funds are collected at the point of sale; schools pay for products sold.

Features:

• Requires only one contact with individual consumers
• Programs are generally shorter in length (an important consideration if funds are needed quickly)
• Consumers can examine the actual product(s) before making a decision

Order Takers
Generally, order taker programs involve the following: consumers select products from a brochure; volunteers record the order on an order form; all order forms are returned together to the fundraising company; the company fills the orders and ships products to the school; products are distributed; volunteers deliver products to the consumer.

Funds may be collected at the time of selection or upon delivery of the product to the consumer. In some instances, sellers carry a "sample kit," which includes samples of products shown in the order taker brochure.

Other mechanics of order taker programs can vary widely. Some programs require the school to tally orders, calculate collections and sort merchandise upon delivery. Also, the cost of programs may include computerized tallying and delivery of products that are pre-sorted and custom-packed.

Features:

• No guesswork on how much product to order
• Brochures allow the group to offer a wide variety of products and range of prices
• Convenient format to include parents and adults in fundraising efforts
• A successful formula for offering a wide range of products and price levels

Selecting the Right Products
Perhaps the most basic question a group must answer is, "What are we going to sell?" There are virtually thousands of products available for fundraising programs. These can range from items such as candy, cookies and other edibles, to wrapping paper, magazines and a wide range of gifts and novelties.

The first - and most important - step when narrowing down the product choices is to insist on high-quality merchandise. Generally, consumers are willing to purchase a product to help support a worthy cause; however, most do not want to pay for inferior or significantly overpriced products. Also, most fundraisers are annual or semiannual events, and success depends on repeat sales. Nothing builds loyalty and profits like a reputation for offering top-quality fundraising products.

Be careful when choosing a product only because it is "new" or "hot." Although new or unusual products can generate a lot of excitement for your program, and may indeed be successful fundraisers, they do not have the track record to compare with more traditional items. Depending on the fundraising goal of the organization, sometimes it makes more sense to sell products that are proven "winners."

Look, taste and touch. Although it is not always possible, the best way to establish product quality is to see a sample. If sampling is not possible, scrutinize catalogs and brochures carefully and ask questions before you order the product(s).

When reviewing retail prices for the product(s), consider the income level of the community where the sale will take place. Matching prices with what the people in your area can reasonably afford will give your program its best chance for success. Make sure the retail price of the product represents a fair market value. An experienced, professional fundraising company can provide valuable advice on the product or products that will work best for your group and your area.

Identifying needs and setting financial goals are vital first steps in conducting a successful fundraising campaign. With a clear understanding of how much money is needed and how it will be spent, volunteers will be motivated and focused. Clearly stated financial goals also will give a fundraising program a benchmark for success.

Vickie Mabry is associate director of the Association of Fund-Raising Distributors & Suppliers (AFRDS), www.afrds.org .

Sidebar 1
Five Steps to a Successful School Fundraising Program
By Ephraim Spero

If your goal is to raise $250,000 to build an addition to your school, or to cover your deficit, then this article is not for you. My advice to you is to hire a proven, full-time professional fundraiser dedicated to your goal. However, if your goal is to raise $5,000 to $25,000 to purchase "extras" for the school (i.e., playground equipment, an enhanced library program or helping send kids to camp), then keep reading, because this is just what you're looking for.

1. Identify your goal.
Choose a special project or an ongoing non-budgetary expense you would like to fund.

2. Select your team.
Assemble a group of volunteers dedicated to this fundraising project-preferably, those with enthusiasm for this project.

3. Choose a program.
If you're using volunteers, look for an easy and inexpensive program, because no matter how exciting the program sounds or how enthusiastic the volunteers are in the beginning, time and effort wears everyone down. With donors, remember that even loyal donors get turned off. "If you come to drink from a well too often, it will either dry up or close up." (Ancient Chinese Fundraiser's Proverb)

4. Altruism
Find a fundraising program with an altruistic objective. Protecting the environment, for example, is one very popular and worthwhile cause.

5. Choose a program provider.
Look for a fundraising company that offers direct contact with fundraising professionals who are ready, willing and able to help you achieve your goals.

Ephraim Spero is the director of marketing for Recyclestop.com.

 

Sidebar 2
Product Roundup

Brakeley Briscoe
Established in 1919, Brakeley Briscoe Inc. is one of the most experienced fundraising consulting firms in the world. They have provided counsel to clients in the religious, education, arts and cultural, health, environmental, and human service sectors. They are noted for their innovative techniques in major gifts fundraising, encouraging clients to stretch their goals and to foster institutional leadership. The services Brakeley Briscoe provides are based on the belief that any assignment begins with an understanding of the mission and vision of the client's organization and the philanthropic environment of its constituents. Regardless of organizational size, the same quality of service is assured. Thei r consulting services include Major Gift Fundraising, Capital Campaign Planning & Management, Training & Executive Coaching, Strategic Planning, Communication Strategies, Annual Campaigns & Planned Giving, and Board Development & Governance.
www.blakeleybriscoe.com

Beacon Fund Raising
Beacon Fund Raising proudly represents The Christian School Collection, backed by a manufacturer with more than 30 years of fundraising experience. Designed exclusively for Christian schools, your school gets 50% profit, free prizes, free brochures, free parents' letters, teacher incentives and 24/6 hassle-free service. For those who would like to keep track of their school sales on a daily basis, Beacon offers FundMaster. This allows any school with a computer to download the program and easily keep track every aspect of The Christian School Collection program. Their album features an appealing selection of gifts, as well as Christmas cards (with KJV Scripture) that can be personalized. There is also a nice selection or roll wrap, flat wrap and gift bags. www.beaconfundraising.com

Believe Kids
Believe Kids is a very different type of fundraising company. Children and their education are their top priorities. The Believe family of companies, The Believe Group, was founded in support of a children's charity, "Small Champions," in association with Children's Hospital. So, their hearts go out to people like you who give up so much for children. They are very proud of our successes, and they continue to innovate with dozens of major corporations and celebrities in creative ways to enhance education and fundraising. Believe Kids offers more than 10 fundraising programs, a dedicated customer care team and a state-of-the-art warehouse. www.believekids.com