Success With Fundraisers Expert advice for meeting your financial goals with product sales. by John R. Throop

Churches large and small strive to fulfill God's call to be the Body of Christ, and to reach their communities and the larger world with the Good News. They develop ministries that have a powerful impact on people's lives, and members often give a great deal of their time and their talent to make a difference for Christ. Yet ministries need money to develop facilities, purchase equipment, run programs, pay workers, and reimburse travel costs.

Even when church members are generous in their regular tithing, the church budget may not be sufficient to pay for discretionary expenses, expansion opportunities, or special projects. So how can churches raise the most money in the best possible way?

Sometimes churches simply ask for a donation, and people write a check. But not everyone wants to give in this way. Other churches ask people to pledge to support people in a Bowl-a-Thon or Walk-a-Thon. Others, especially in youth groups, run car washes or host bake sales.

These fundraising results, while good, are not all that they could be. The work can be very tiring—and sometimes demoralizing. Many churches are discovering an important alternative—fundraising through product or service sales. Product sales can be an effective and quick way to raise significant amounts of money and build some great teamwork.

Choices Galore
The most difficult part of a fundraiser might be choosing the right product to sell. With a wide range of programs and activities to choose from, the decision could require a lot of internal negotiation. Churches and ministries can opt to sell collectible products that celebrate a special event or milestone such as a church centennial. Commemorative products give individuals and families opportunities to honor or remember loved ones. Consumables such as candy, fresh fruit, cookie dough, or snacks sell well in many congregations. Cookbooks draw the interest of all those who broil, blend, or bake.

Regardless of the product line, it is important for a church to partner with the right company. "This is a business venture," says Russell Lemieux, executive director of the Association of Fund Raising Distributors & Suppliers, an international association representing the product fundraising industry. "Churches will have a lot of options as they are solicited by several companies. Do a thorough investigation and examination of all companies. Ask a lot of questions of any company, especially regarding their support for and help with the program."

Before choosing a type of fundraiser, consider the demographics of the congregation and the community to which products and services will be sold. What products will be especially appealing? Some people, such as teens and older persons, might prefer candy, while families with children might want frozen cookie dough. "We find that cookie dough is one of our best sellers these days," says Morris Capp, president of Spirit of America, a distributor of fundraising products. "Families like cookie dough because parents can bake with their children. And who doesn't like the taste of a fresh-baked cookie?"

Other people find collectibles quite appealing. They might have a sentimental history with the church, and want to invest in keepsakes or other items to honor their church. "Churches often want products to sell in different price ranges because not everyone likes the same thing," says Bob Messersmith, president of Messersmith Promotions. He says collectors have many different interests—some drawn to expensive items, others to smaller keepsakes. So some churches will sell multiple items, including china plates, Christmas ornaments, and hotplates.

Know Your Market
As you contemplate different fundraising programs, keep in mind that demographics are important in determining product offerings and pricing. This is especially true with commemorative fundraisers such as a Tree of Life. The Tree display is divided in branches and leaves of different sizes, which are purchased to mark special events such as a birthday, anniversary, baptism, or ordination. Leaves are also purchased as memorials to deceased church or family members.

Richard Baum, president of W & E Baum, says that when churches do their homework to understand the demographics within their church and community, they can properly determine pricing for different parts of the display. People with more financial resources can be asked to give at a higher level to fund a branch, while others who have less money to give can contribute leaves at a lower amount.

People can give on several occasions, too—not just one time. "The biggest mistake a church makes is pricing the leaves too low," says Baum. "Churches need to do homework to determine the highest price they can charge and what the market may bear." He urges church leaders to contact other organizations in their community, such as hospitals, that have been successful in commemorative efforts.

A Tree of Life requires an initial investment by a church or ministry. "Someone may want to donate the commemorative tree," says Baum. "Then there is zero cost to the church and profits result from every leaf or branch sale." Another plus: additional items at other prices can be added to leaves and branches, such as acorns, apples, and doves. Baum also notes that by adding a church logo or a picture of the church building in the tree design, the tree becomes more personalized.

Get Properly Organized
Fundraisers require carefully planned organization. Begin by selecting a project chairperson. "Select a chairperson for this project and then gather a committee," says Hong Ni, sales representative for Fundcraft, a cookbook developer. Then, as you involve others to help organize the work and to market or sell the products, look for those who are excited about the product.

Ni has specific advice for successful cookbook projects: "Start distributing the word about the need for recipes from friends, relatives, and church members." When more and more members submit recipes, there is growing excitement about publishing the cookbook, and the church will be able to sell more copies. "Also, a church needs to be sure that people not only are gathering the recipes, but are pre-selling the book," says Ni. "Be sure to have someone to check on the errors, too."

Churches can publish cookbooks using two methods. The traditional method involves gathering recipes, typing or printing them onto forms provided by the publisher, and submitting them for production. The process requires 60 to 90 days from recipe submission to delivery of a 200-page cookbook. Fundcraft also offers a newer method called Instant Publisher, using free software they provide to a church for data entry. The recipes can be transmitted electronically for production. The entire process takes less than a month from transmission to delivery of a 150-page cookbook.

Collectible fundraisers need careful organization, too. "This entire process is more than simply buying commemorative items," says Messersmith. "You need to have a committee with historical sense, as well as a separate fundraising/promotional committee, and an events committee to highlight the occasion. When these groups are in place, get in touch with someone like me and go from there."

It is important to have a clear purpose for the fundraiser, and to set a firm goal for how much money needs to be raised. "The first thing we ask is how much the church wants to raise, and a start/end date for the fundraiser," says Capp of Spirit of America. "You also need to make sure that there are no conflicts with fundraising schedules with other groups in their church, such as a frozen cookie dough sale for a building fund when choir is doing same for new robes."

Lemieux cautions against the appearance of raising money just for the sake of fundraising and generating a steady stream of cash for various needs. He notes that many schools are guilty of this. "We think the biggest thing to do is to identify the purpose for funds—what they will be used for," he says. Without the clear purpose communicated, Lemieux says, "People in the community feel like they keep getting hit up and don't know why." He stresses that it is tremendously important to communicate the purpose of the fundraising to all stakeholders to achieve success.

Common Mistakes
When selling consumables, collectibles, or cookbooks, a committee needs to be very careful in determining the quantity to order. Ordering more product than it can sell is a problem. "Most fundraising companies won't take anything back that's edible because of security concerns," Capp says. Collectibles and cookbooks are highly individual and specific to the church and congregation, and likewise cannot be returned.

Other types of products, however, can often be returned. "Most companies will take back any products that people don't buy as long as they are in good, sellable condition and in the original package," says Capp. Remember—it's always possible to order more product if needed.

Another mistake to avoid is pricing the products too low, or thinking that a discounted price will boost sales. If the purpose is important enough and communicated clearly, and the product is of excellent quality, then people will be willing to pay a premium because they know they are making a donation and not just purchasing a product.

But choose a product that is in a price range that most people can afford. "The figure should be a number that average church member wouldn't stop to think about too hard," says Baum. He also advises churches to think outside the congregation—church visitors and friends and coworkers of church members are potential purchasers, too.

Finally, door-to-door selling has become a poor sales method, primarily due to safety issues. "At the minimum," Lemieux says, "an adult always should accompany a child who stops at different houses." In many places, people will not answer the door to anyone selling anything, he adds. Church members can sell instead to classmates, co-workers, friends, neighbors, and at special events. And don't forget to use the church web site.

With good business practices, challenging goals, organized teams, and a clear starting and ending date, successful church fundraisers can generate the resources to help fill gaps in ministry finances and take advantage of great opportunities. By selecting the right product for a clear purpose, people inside and outside of a congregation or ministry can become partners in advancing the Gospel.

John Throop (throop@consultsummit.com) is a management consultant and pastor of Christ Church Limestone near Peoria, IL. This article first appeared in YOUR CHURCH magazine, November/December 2004.

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