The Great Fundraising Debate

Most charities operate with limited resources and face a critical choice: should they invest time and effort into organizing fundraising events, or focus on writing grant applications? The answer isn't straightforward, as both approaches have distinct advantages and hidden costs.

Key Statistics That Matter

>£2.3k

Average fundraising event profit

>£18k

Average successful grant award

300%

Higher ROI from grants vs events

Event Fundraising: The Full Picture

Event Advantages

• Community engagement: Builds relationships and visibility
• Immediate cash flow: Money comes in on the day
• Predictable outcomes: Easier to estimate returns
• Skills building: Develops team event management capability
• Multiple revenue streams: Tickets, sponsorship, auctions
• Marketing opportunity: Raises profile beyond fundraising

Hidden Event Costs

• Staff time: 120+ hours for typical charity gala
• Volunteer burnout: High demands on supporter base
• Weather/external risks: Outdoor events particularly vulnerable
• Upfront costs: Venue, catering, marketing expenses
• Seasonal limitations: Most events cluster in few months
• Diminishing returns: Annual events often see declining attendance

Event Fundraising Reality Check

Case Study: Medium charity annual dinner (150 guests)

Income:

• Ticket sales: £4,500 (£30 × 150)
• Auction: £1,200
• Raffle: £400
• Sponsorship: £800
Total: £6,900

Costs:

• Venue hire: £800
• Catering: £2,700 (£18 per head)
• Marketing/printing: £300
• Entertainment: £600
• Staff overtime: £500
Total: £4,900
Net profit: £2,000

Note: This doesn't include the 120+ hours of staff time at £15/hour = £1,800 opportunity cost

Grant Funding: The Strategic Alternative

Grant Advantages

• Higher awards: Typically £5,000-£50,000 per grant
• Lower overhead: Minimal upfront costs
• Skill investment: Grant writing improves over time
• Strategic focus: Forces clear project planning
• Professional credibility: Enhances organizational reputation
• Sustainable funding: Multi-year grants available

Grant Challenges

• Success uncertainty: 15-25% success rates typical
• Delayed income: 3-6 month application to payment cycle
• Reporting requirements: Ongoing monitoring and evaluation
• Skill barrier: Requires specialized writing expertise
• Limited flexibility: Funds tied to specific purposes
• Competition: Multiple organizations competing for same funds

ROI Analysis: The Numbers Don't Lie

Metric	Fundraising Events	Grant Funding
Average Return	>£2,300	>£18,000
Time Investment	120 hours	40 hours
Upfront Costs	>£2,000-£5,000	>£0-£500
Success Rate	85-95%	15-25%
ROI per Hour	>£19	>£450
Risk-Adjusted ROI	>£18/hour	>£112/hour

The Optimal Fundraising Mix Strategy

The most successful charities don't choose between events and grants – they strategically combine both. Here's how to create the optimal funding portfolio:

Small Charities (<£100k income)

Recommended Split:

• 70% grants: Focus on smaller trusts (£500-£5,000)
• 30% events: 2-3 small, low-cost community events

Rationale:

Limited capacity means focusing on higher-ROI grants while maintaining community connections through simple events.

Medium Charities (£100k-£500k income)

Recommended Split:

• 60% grants: Mix of trusts and government funding
• 40% events: Professional events with corporate sponsorship

Rationale:

Enough capacity to run quality events while pursuing larger grants. Events support relationship building for future funding.

Large Charities (£500k+ income)

Recommended Split:

• 50% grants: Major government and foundation grants
• 50% events: Flagship events + corporate partnerships

Rationale:

Can afford dedicated teams for both strategies. Events become major income generators and brand building opportunities.

Making the Strategic Decision

Decision Framework

Use these questions to determine your optimal approach:

1. Current Capacity Assessment

• Do you have dedicated fundraising staff or rely on volunteers?
• How many hours per month can you realistically commit?
• What's your risk tolerance for upfront investment?

2. Organizational Goals

• Is community engagement a key strategic objective?
• Do you need flexible funding or are you happy with restricted grants?
• Are you looking for one-off funding or sustainable long-term income?

3. Market Environment

• How saturated is your local events market?
• What grant opportunities align with your work?
• Do you have existing relationships with potential funders?

Action Steps for Both Strategies

Improving Event ROI

• Corporate partnerships: Secure venue/catering sponsorship
• Digital integration: Online auctions and donations
• Volunteer management: Clear role descriptions and appreciation
• Data capture: Build supporter database for future events
• Cost control: Track all expenses against initial budget
• Follow-up strategy: Convert attendees to regular donors

Maximizing Grant Success

• Grant database: Maintain comprehensive funder research
• Application tracking: Monitor success rates and feedback
• Relationship building: Attend funder events and presentations
• Outcome measurement: Robust monitoring and evaluation systems
• Template development: Create reusable content for applications
• Partnership strategy: Collaborate for larger grant opportunities

The Hybrid Success Story

Case Study: Yorkshire Wildlife Charity (£200k annual income)

Previous approach (events only):

>£45,000 raised through 8 annual events, requiring 400 hours of staff time

New hybrid approach:

• 4 streamlined events: £28,000 (200 hours)
• 12 grant applications: £67,000 (180 hours)
• Total: £95,000 (111% increase, same time investment)

Optimize Your Funding Strategy

Whether you choose events, grants, or a hybrid approach, Crafty helps you maximize returns through strategic planning and expert application writing.

Create Your Funding Strategy