I’m not a fan of what I call, “transactional” fundraising at international schools.
That doesn’t mean I haven’t done them before, or that they’re not good community builders, or that they don’t show some feel-good, short term results; it’s just that they eventually get in the way of what the school really could be raising, and they’re awfully hard to get rid of once they’re a tradition.
Contrasted with philanthropy, where the donor expects nothing personal in return, transactional fundraising is where we hold events, galas, auctions, raffles, etc, where the “donors” receive a tangible, personal benefit from their donation (whether that’s a special night out or a new set of luggage). It’s an attractive idea if the school has no history of fundraising, or if we’re tepid about the school’s Case for Support.
A primary issue with transactional fundraising at international schools is the profound difference (at the risk of stating the bleeding obvious) between raising money for an affluent school and raising money for, say, finding a cure for cancer.
The thought process is that we’ll hold a black-tie event where people bid substantial amounts for a donated object of perhaps little value, which ideally the winner will then give back so that it can be auctioned again to the next donor. We know that this is an often successful way for people to show their affinity for a cause with an instantly and globally recognized benefit (Save the Children, for example).
The problem is that this model simply doesn’t work for all non-profits; the Case for Support for an affluent international school is more nuanced than that for The Breast Cancer Research Foundation, so other than in extreme cases (and do please share in the comments if your international school is one of them!), these events will not raise substantial (and more importantly, growing amounts) for our schools’ operating budgets, nor will they introduce potential major donors to ways in which they can further support the school. In the end, the auction turns into a yard sale of more and more goods donated by people looking to market themselves to the community, and the volunteers who organize these labor intensive events are left deflated (burned out, dreading the next annual event) because all the items they diligently collected for the auction ended up selling for less than their appraised value; but this shouldn’t be a surprise because (not understanding or perhaps believing in the school’s Case for Support) the only reason people are bidding on them at all is to get a good deal, not to support the cause. And increasing the size of the event doesn’t necessarily increase the revenue: the increased cost means that net income flatlines at a rather predictable level.
In reality, then, the money raised from these events is simply the profit from having held an event, with virtually no philanthropy involved at all. Worse, it obscures any Case for Support that the school actually has, and confuses people if, at the same time, the school is trying to run an Annual Fund. Why should I give to an Annual Fund if I can wait and bid on some airline tickets at the gala?
Another issue is that relying on events to raise money is that far from bringing the community together, it can split your community into those who can attend and those who can’t (usually due to geography, and usually Alumni). Those who can’t attend are left to wonder if they are as valued as current families.
The answer to this is to ensure that:
Our Case for Support is so strong that at a minimum, our closest supporters (our Trustees) give at a meaningful level* to support it, and they are able to speak passionately about it. They, in turn, enthuse others who want to join this growing community of donors who want to see this school achieve its mission.
The methods that the school uses to fundraise are clear: an unrestricted Annual Fund, an Endowment, and Capital Campaigns (all with best-practice policies for naming, giving levels, estate gifts, etc), and nothing else. It’s only through these vehicles that giving can be scalable.
If you’re reading this and thinking that your community (your Trustees, even?) would only ever be grudgingly convinced to give in a transactional way, and wouldn’t support an unrestricted Annual Fund, it’s time to get to work on perfecting your school’s Case for Support: convince your parents, alumni, teachers - and yourself - that your school is worthy of true philanthropic support. And move your volunteers towards a committee that works to not only raise more money each year, but to increase the number of donations received. I’ll address those committees in my next post.
*for some donors, €100 is as meaningful as €1,000,000 is to another donor, and we want all donors to contribute at a level that is meaningfult to them; if donors give more than we expect, it gives the school the confidence to budget for more of its aspirations in the future.
I agree Clive. I see it works and an Annual Fund is somewhere I hope we will go. It is difficult when the tradition is deep, but I think this would be a better model for us. Great post!