How Effective Are Galas at Raising Money?
How Effective Are Galas at Raising Money?Feb 01
Gala benefits have received their fair share of criticism over the years, with many individuals complaining that they are an inefficient way to make money for organizations. Indeed, galas do take a LOT of volunteer time and money to put together, but there’s no question that they can also bring in stunning amounts of donations when carried out properly.
Gala benefits require staff—waiters, bartenders, auctioneers, DJs, and more—and it’s not always possible to find good Samaritans willing to volunteer, so part of the revenue must go toward paying those employees. If a gala is carried out correctly, though, costs should be minimized and donations should far outweigh them; if not, an organization could lose money hosting a gala.
Gala benefits are hosted for a few purposes. First, they tend to get people excited about a cause. Second, they might honor a particularly committed or influential donor/community member. Third, they raise money through tickets, auctions, and donations. One-time donations are popular among guests who aren’t overly involved in the organization, but it’s certainly possible that other more committed donors could emerge.
Donations at gala benefits may not be as altruistic as simply writing and sending a check, but that’s not necessarily a bad thing. Revenues will be smaller because of the cost of the event, but donors will get a chance to socialize and get each other excited about the cause. This can ultimately create more “buzz” and awareness within the community, which could attract new supporters.
When organizing galas, groups should be sure that the hosting committee is full of influential and affluent members of the community. People with better connections will create a bigger buzz and can attract more donors and attendees. Some of the biggest and best galas have been hosted by well-known names: Actress Sarah Jessica Parker (Dance By Design), Vogue contributing editor Lauren and husband Andres Santo Domingo (DKMS Linked Against Blood Cancer), and businessman François-Henri Pinault and wife Salma Hayek (Costume Institute).