Frequently Asked Questions
Schools find many creative ways to raise funds--from bake sales, spaghetti dinners, auctions, and school carnivals to more aggressive advertising, affinity programs, grant writing, and straightforward donation requests. But few fundraisers are more reliable for reaching specific fundraising goals than a good product sale.
Product fundraising has been around for more than a century. It typically involves the purchase and re-sale of popular consumer products by a non-profit group whereupon the group sponsoring the sale keeps a portion of the gross sales. Products can be purchased in bulk and paid for in advance by the organization, then re-sold to supporters. Products can also be ordered using a catalog, order forms and other methods. Supporters pay for the product when the order is placed or upon final delivery.
Here are some frequently asked questions regarding school fundraising.
Why is product fundraising effective?
Product fundraising usually involves a professional fundraising company and often a sales representative who serves as liaison between the product supplier and volunteers responsible for the fundraising drive. These companies provide advice, trouble-shooting, support, products, guidance and other valuable services that can reduce volunteer time and energy and maximize sales. Special events and other "do-it-yourself" fundraising methods are more labor-intensive and frequently yield smaller results. Product sales work because results are fast and people like buying products for a worthy cause. Each year, non-profit groups net approximately $2 billion by selling products.
How can we prevent our parents and other supporters from burning out on fundraising?
First, set clear goals and firm deadlines. Communicate fundraising goals and important dates often to parents and teachers, along with frequent progress reports.
Do a few and do them well. When it comes to fundraising, less is more. Don't make constant pleas just for the sake of fundraising. Communicate early on your goals and fundraising plans for the year. Families are more supportive if they understand and support one or two tangible goals.
Know what others are doing. Share dates and other important info with other fundraising groups in the community to avoid duplicating efforts.
What percent of fundraising sales should organizations receive?
Percentages of sales offered to non-profit groups vary widely depending on the type of products being sold and the services offered by the fundraising company. Too often, fundraising coordinators equate financial success directly with the percentage of gross sales that their group will keep. Rather, volunteers should be focused on how the combination of product quality, company services and percent of profit to be received will all work together to help the school meet its total fundraising goal.
Are incentive programs essential for motivating volunteers?
Schools eager to reach their goal often add an "incentive program" to their fundraising effort. Although the goal itself is motivation enough for some volunteers, prize or award programs can contribute significantly to the success of a program. Incentive programs are designed to encourage and reward participation and add an element of fun, encouraging broad participation of volunteers so that the burden of meeting the school's goal does not fall to a dedicated few. Indeed, the majority of fundraising prizes actually distributed today are simple tokens (stickers, pencils) to recognize participation.
It is important that school administrators and parent groups work closely with fundraising companies to ensure incentive programs are appropriate for their students.
Does a product fundraising sale require "door-to-door" solicitation?
For some people, product fundraising has mistakenly become synonymous with the term "door-to-door sales." In fact, most product fundraising sales are made to parents, family members, friends and close neighbors. A successful product fundraising drive does not require volunteers, young or old, to canvass neighborhoods. Parents are very involved with these programs, often soliciting support from co-workers.
Is it appropriate for children to participate?
School fundraising drives are often a child's first taste of volunteer service. If presented and supervised properly by a parent, coach or teacher, a fundraising project to support school or extra-curricular activities can build a child's confidence, self-esteem, sense of responsibility, good manners, planning and budgeting skills, to name a few.
However, children should never be allowed to sell door-to-door unless directly supervised by a parent or responsible adult. Fundraising companies, school and organization leaders and parents must be diligent in assuring that children participate in fundraisers in a safe manner.
Who are product fundraisers?
Product fundraisers are companies that provide products and services to schools, parent-teacher organizations, booster clubs, church groups, youth sports leagues, scouting groups and other non-profit organizations to assist them in their fundraising programs. These companies have the knowledge and expertise to help groups select safe, effective approaches to fundraising. There are large national companies that specialize in fundraising as well as many smaller, family-owned businesses that collectively employ thousands of men and women who justifiably take great pride in helping schools and other organizations raise money. Product fundraisers are also sometimes referred to as fundraising distributors.
Why should companies benefit from fundraising efforts?
Fundraising companies provide products and services to help schools and non-profit groups. Like all other services schools may utilize, professional fundraising services do come with a price. But the rewards of a good relationship with a fundraising company are well worth the investment. The portion of the gross proceeds that go to the fundraiser cover the company's costs of doing business, including: 1) the cost of the products and other materials (brochures, order forms, parent letters); 2) the costs associated with services (stocking and handling inventory, packing, shipping and troubleshooting); and 3) a fair profit so that the company can provide service year after year.
Evaluating Fundraising Companies
Choosing a fundraising company is much like choosing a business partner or hiring a new employee. It's important to work with a company that can be trusted and one that can deliver. When interviewing fundraising companies, schools should prepare a list of key questions.
Is the company offering a high caliber, professional program?
Are the products high in quality and something the school can be proud to stand behind? How is safety addressed? Does the company discourage unsupervised door-to-door sales? Will adult supervision be stressed? How will these points be communicated to volunteers? What promotional materials and/or incentive programs will the company provide? Are the materials appropriate and good in quality?
How will the company's program meet the fundraising goals of your group?
What time and energy saving services (tallying, individual student and/or classroom packing, etc.) does the company offer, and how much will these services cost? Rather than focus on percent of profit your group receives, ask what real dollars a group similar to yours in size and scope can expect to raise? Does the retail price of the products represent a fair market value? Will there be a written agreement?
Does the program include straightforward logistics?
How will the program work? Are products paid for in advance or upon delivery? Will the company provide volunteers with easy-to-understand, comprehensive guidelines for record keeping? Does the company understand and comply with your state's sales tax laws? How are products shipped and when? Who pays the freight? What is the policy on damaged or unsold products? Will out-of-stock items be back-ordered or will substitutions be provided? How quickly will the group be notified if there is a problem and given a plan for how the problem will be resolved?
Does the company have a strong track record?
How long has the company and the individual representative been in the product fundraising business? How quickly will you be able to reach the company or individual representative should the need arise? How good has their program worked for other groups similar in size? Can the company/representative provide references? (Ask references if the company met fundraising goals. Was the representative responsive? Would the group work with this company again? )
Most online fundraising programs are designed as online "store-fronts or shopping malls" offering rebates based on a percentage of the purchase back to non-profit groups designated by the online shopper. When considering an alliance with an online fundraising company, apply the same rigorous research as you would a traditional fundraising company.
Source: Association of Fund-Raising Distributors & Suppliers
