Ensuring that an event is fun, profitable, and not overly taxing on your staff is no easy task. Approach events with the same methodology used for capital campaigns or strategic planning: with ample time, realistic goals, and a clear sense of the desired outcome. Anyone who has planned an event knows they are like home renovations—they seem to cost twice as much and take twice as long as you expect.
Let's talk next about money. Many nonprofits fall into the trap of poor budgeting, investing time and money, only to break even or incur a loss at the end of an event. A budget that is realistic, detailed, and carefully managed is one of the best tools in your toolbox. Envision all aspects of your event, account for every component that has a cost associated with it, and think through how you're going to raise money and what's realistic. Identify items and services you need to get donated, but be very conservative with your in-kind donation estimates. Notwithstanding our comments in Tip 7, organizations often erroneously assume that they can throw an entire event based on donated goods and services. Finally, add a 5 percent–10 percent contingency line item to cover unexpected costs without breaking your budget.
Consider the 2-to-1 ratio. If you raise $2 for every $1 you spend, that's considered a respectable expense/income ratio. Even if you're planning a modest fundraiser with the goal of bringing in $500 for your project, you still need to create a realistic budget and time line, just as you would for a large gala.