Mastering Gala Fundraising: Essential Tips with Anne Davis East

Non-Profit Stories: Inspiring Tales from Silicon Valley

In This Episode:

In Silicon Valley, high venue costs often exceed $30,000, creating significant financial burdens for nonprofits. Additionally, frequent event invitations lead to donor fatigue, reducing gala attendance by 20%, and a 35% volunteer shortage critically affects the execution and staffing of these events.

Gala Fundraising Problems Of Silicon Valley

• High Venue Costs: High venue costs in Silicon Valley, often exceeding $30,000 due to demand, pose financial challenges for smaller nonprofits hosting galas.

• Donor Fatigue: Silicon Valley donors frequently experience donor fatigue due to many charity event invitations, leading to a 20% decrease in repeat attendance and reduced donation rates at galas.
• Volunteer Shortage: Silicon Valley faces a volunteer shortage, with a 35% gap in the needed volunteer base for events. This affects the execution and staffing of large-scale fundraising galas.

About Anne Davis East:

Anne Davis East, with over 30 years in nonprofit management, is the CEO of Davis East Consulting. She specializes in nonprofit compliance, board development, ethics training, and strategic planning. She’s active on several boards, focusing on community development and assisting underserved youth. Her affiliations include notable organizations like the National Association of Business Women and the Association of Fundraising Professionals. Anne earned a BS from William Woods University and an MS in Elementary Education from Lesley University.

Show Notes:

• Auction Considerations: Anne Davis East highlights the need to issue a 1099 form to auction winners at fundraising galas, as these winnings are considered income for tax purposes.
• Raffle Regulations: Anne discusses the importance of obtaining a permit for raffle events from the attorney general and suggests securing a year-long permit for monthly raffles to ensure compliance and cost-effectiveness.
• Online Raffle Ticket Sales: In some states, including California, selling raffle tickets online is prohibited. Anne stresses the need for transparency and careful management of raffle tickets to avoid legal issues.
• Fair Market Value of Raffle Items: Organizations must determine the fair market value of raffle items, except for gift certificates, which are valued at the amount stated on them.
• The Risks of 50-50 Raffles: Anne explains that 50-50 raffles are only legally permissible for professional sports teams in California, and engaging in such raffles can lead to significant legal consequences.
• Alcohol Management at Galas: Handling alcohol at events requires careful consideration, including ensuring that volunteers serving alcohol are properly trained and certified. Anne discusses the implications of alcohol service and the importance of managing consumption responsibly.
• Training for Alcohol Servers: Volunteers serving alcohol must be certified, and Anne mentions that training can be done online for a fee, and certification lasts several years.
• Event Revenue Streams: Anne advises on collaborating with wineries or breweries for events, using a ticket system to track sales, and effectively managing financial transactions.