Southern Ontario Library Service

Funding Development Services

FAQ Series :  Special Events

• What is a special event?
• Why have events? Should I only do special events to make money for the library?
• What can we issue a charitable receipt for?
• What are some good event ideas?
• How do I determine the special events that will work for my library?
• Is it better to set objectives before picking the event and should we also include our mission with that decision?
• What are some ways to minimize the risks of doing special events?
• How can we make more money from our current event?
• How can we reduce our expenses?
• We don’t have a volunteer base and the staff doesn’t have the time to organize fundraising events.  Is there any way we can still take advantage of events?

What is a special event?

“Special event” is the term used in fundraising to describe a fundraising event.  It can be a ticketed event like a gala dinner, a golf tournament, or a walkathon.  The type of event is really only limited by your own creativity and resourcefulness.

Why have events? Should I only do special events to make money for the library?

When most people think of fundraising, they immediately think of events.  It is probably the most common way to raise money.  They’re popular for lots of good reasons, but there are definitely pros and cons in doing special events and the good usually out-weighs the bad.  Events are generally a good way to make money for your organization if you need a modest amount in a relatively short period of time.  They are a good way to have some fun, generate some excitement, get lots of volunteers involved, and get the word out about your library.  They are also a good way to lose money if they’re not well organized.  They can cause friction between volunteers and staff and quickly burn out volunteers.  Another reason they are so popular is that most people are more comfortable selling an event ticket to their friends than asking them for a donation.  From a long-term fundraising perspective, events are a good way to begin a relationship with new donors to the library and can be a particularly good foot in the door with businesses.  Events should be a part of your long-term fundraising strategy to acquire new supporters to the library.  So, while they are a good way to make money for the library, there are other reasons to do events as well.  For assistance is determining if an event idea is a good one, use the ‘Event Evaluation Checklist’.

What can we issue a charitable receipt for?

One of the convenient aspects of special events that appeals to organizations of all sizes is that events generally don’t require the issuing of charitable receipts – so you don’t need charitable status to do them.  The CRA (Canada Revenue Agency) determines that a charitable donation is a gift freely given without expectation of return.  Usually events mean that you are getting something for the money you spend, and therefore the transaction is not considered a donation for tax purposes.  So, small organizations or volunteer groups that do not have charitable status can still do an event and not worry about issuing charitable receipts.  However, roeHoweceipting for events can get complicated, especially now that CRA has allowed for split receipting.  A good rule of thumb is that if you determine that the fair market value of what the attendee is receiving is equal to the price of the ticket, you don’t need to worry about receipts.  If there is a premium value added to the ticket price, then you can receipt for the amount of the premium.  I’d encourage you to go to the website for the CRA and look for their information schedule on receipting for special events and split receipting.

What are some good event ideas?

There is no end of good ideas for special events – you’re only limited by available resources and creativity.  A really good special event is closely tied to the mission and values of an organization.  For instance, it makes perfect sense that many libraries and Friends groups hold book sales to generate income. Some libraries use the occasion of the book sale to do other things as well, such as a plant sale or a garden tour that ends at the library’s book sale.  Authors’ readings are good ways to promote the mission and values of the library and literacy and we see many libraries already doing these.  There are lots of creative ideas based on themes taken from books – mystery dinners, period balls and galas, fantasy evenings, travel and adventure, local history.  My best advice is not to look too far a field – often we get ‘event envy’ when we see what other groups are doing.  The best ideas will make use of resources that are easy for us and make sense for our supporters.  Just be clear about your goals and objectives: How much money do you need to raise? Are you cultivating a particular audience, like major donor prospects? Are you building up a volunteer pool? Are you trying to make a big splash in the media to promote a particular idea or bit of library news?  Any of these could be accomplished with the right event.

How do I determine the special events that will work for my library?

Organizational fit is a very important element of having a successful event.  As discussed above, you don’t have to wander too far from what you already have.  Speakers’ series and authors’ readings make sense for libraries to produce – and perhaps bachelor auctions and fashion shows aren’t.  You can be unique, surprising and provocative with your events and still stay true to your mission and values.  Also, the community has certain expectations of the library for what it should and shouldn’t do.  Taking that into consideration, the event committee should do an environmental scan to review what other organizations are doing and when, what they are charging, and who sponsors them.  This is all good information to have in hand when planning your event.  You should also consider who the target audience for the event is: members, potential donors, other market segments.  Once you’ve determined who you audience is, you must create a sales plan to reach them.

Is it better to set objectives before picking the event and should we also include our mission with that decision?

You should certainly set objectives for your event and they should be measurable.  And the objective shouldn’t only be money; it should include elements like: increased number of volunteers engaged, getting new patrons to come, adding new sponsors, and retaining old sponsors.  And so you’ll know that you’ve been successful, you can add goals to these objectives; such as increase number of new sponsors by 3, add 15 new volunteers, and introduce 7 new patrons.  This allows you to evaluate your methods by comparing your goals and objectives, and determining your success.

What are some ways to reduce the risks of doing special events?

There is always going to be financial risks to producing special events unless you are not producing them yourself (see 3^rd party events, below).  In order to manage the risk, try to use other people’s resources, money and time, as well as sponsorships and in-kind contributions and volunteers. 

How can we make more money from our current event?

One of the nice things about event fundraising is that we can build on them year over year.  It’s best to start simple and execute very well – so the attendees have a good time and feel it might be something they’ll do again.  After the first couple of years, you can add other activities to enhance the revenue – called secondary revenue generators.  These are things like: silent auctions, raffles, balloon bursts, and mystery envelopes.  They add excitement, visual interest, and best of all more income to your bottom line.  Other strategies for generating more revenue include: created tiered ticket pricing, so those who can afford more have the option; create a VIP section for gala patrons; sell corporate rows or tables for businesses looking to support at a higher level for a little bit of recognition; program advertising; add a pre-show reception or after-party for a premium ticket; and, an ask from the stage, or simply adding a donation box for loose change.

How can we reduce our expenses?

Budgets for events can be quite extensive, and often hold the key to more net revenue.  Some of the strategies you can employ to reduce your expenses include: trading value in-kind, such as rather than paying for décor items like table centres, you offer some marketing value to the vendor in exchange from free or reduced cost items; negotiating with a venue partner for marketing value such as an ad in your program; partnering with service clubs or schools to provide volunteer assistance; using a combination of paid help and volunteers to reduce the cost of staffing; and perhaps the most common, sponsorships.  Sponsorships should be used for ‘budget relief’, that is asking sponsors to help your event by covering the hard costs of producing the event.  In that way, ticket sales revenue goes directly to the library, since all your expenses have been covered with sponsorship money. (See more information on sponsorships in the section on corporate partnerships.)

We don’t have a volunteer base and the staff doesn’t have the time to organize fundraising events.  Is there any way we can still take advantage of events?

You can still have all the advantages of doing events, such as publicity and fun, if you can get good partners like service clubs or a Friends group to take on the risk of doing events.  These are referred to as third party events – another organization is taking on all the financial risk of producing the event, but a portion of the proceeds are benefiting the library.  It can be surprising, yet encouraging, that there are wonderful volunteers in our communities who will rally to help out a good cause.  Usually a group will want some sort of recognition for their efforts – so be attentive to what they would like.  One caution though, you may want a written agreement with groups that are using the library’s name to raise money in the community. It’s good to have this written agreement as backup in case something goes wrong and the event reflects poorly on the library.  Make sure as much detail as possible is spelled out in advance so there are no surprises or unrealistic expectations.  You don’t want to encounter difficult situations where a volunteer group is expecting the library to cover their expenses, or sign contracts on their behalf.