Underwriters vs. Matching Gifts
Do you host an annual dinner to raise funds for your nonprofit? Chances are, the answer is a resounding “YES!” For many nonprofits, these annual dinners are major fundraisers for the organization and an excellent opportunity to reach new partners.
A common approach we’ve seen in many of these fundraising events hosted in our Attendance platform is to seek underwriters and/or sponsors to cover the event expenses. This makes sense as it takes the burden off your shoulders as you plan, knowing that all funds raised that evening go straight to the cause and not the event.
But… is that the most effective way to raise funds at fundraising dinners?
A different perspective.
Our friend, development expert Jim Dempsey, has a different perspective on this common practice.
Jim has hosted over 2,500 fundraising dinners over the past 35+ years and has found that leveraging matching gifts at these events performs significantly better than events that are underwritten.
A matching gift is where a sum of money is pledged by partners, stating that they will "match" any donation from others up to a certain amount. We hear about matches during radiothons a lot: "We have a partner willing to match any donation of $300 or more made within the next 30 minutes."
Matching gifts can be incredibly powerful at your event. Not only that, but statistics show that they actually increase the money raised that night significantly.
Your partners want to make a difference with their giving.
Let's try this on for size: When I (as a dinner guest) hear you tell me that the event has been underwritten and completely paid for, the financial need is no longer relevant. My perception has changed as you have just indicated that your organization does not need my money—or at least as much—since you just told me that you have very wealthy partners able to pay for this multi-thousand dollar event.
So while I am so happy that an organization I support has the money it needs to continue the cause, my $50 monthly commitment now seems negligible or less wanted.
A powerful ask.
On the other hand, when I (as a dinner guest) hear you tell me that your organization has a ministry partner willing to match any gift of $600 ($50/month) or more, my ears perk up. This means that if I commit to a $50 monthly gift, the organization will actually get $100/month because of the match, which allows you to serve even more people!
With matching gifts, your dinner guests are challenged to give—often more —than what they initially planned.
Think about it. If you typically donate $500 to an organization in a year and you were told that if you increase your donation by just $100, the organization will actually gain $1,200, wouldn't you consider adding that $100?
Now, you may be wondering: How do you get these "matching gifts"?
Easy. The same way you got your underwriters. Ask.
If you have a few major partners who tend to help underwrite your major events, simply ask them if they would be willing to give the same amount (or more) in order to challenge others at the event to increase their giving. You can list these people and businesses in the program as "Partners" (instead of "Sponsors" or "Underwriters") and your organization will still receive the funds.
While a small change in concept, transitioning from underwriting to matching gifts could be a BIG change for your annual dinner.
Want to learn more?
Want to learn more from Jim? Check out this webinar in which Jim shares more about leveraging matching gifts for fundraising dinners and why sponsorships underperform.
To learn about the Perfect Vision Dinner that works, check out The Fundraising Masterminds Podcast.
Get 15% off of the Fundraising Masterminds Perfect Vision Dinner mentorship program when you mention FundEasy sent you!
I hope this simple change helps your nonprofit thrive, having the capacity to serve more because of increased giving.
Crystal Hoag
This article was developed with input from Jim Dempsey, National Director for Fund Development for Campus Ministry of Cru. Jim has helped ministries plan over 2,500 dinners and has seen this approach greatly increase giving at these events. To learn more, please contact Jim via email at jim.dempsey@cru.org.
Adapted from a 2017 article written by Andrea Trudden with input from Jim Dempsey.
