VIPs Can’t Afford The Gala… Should The Party Go On?

September 25th, 2009

Everyone is feeling the recession – even the rich – and that’s making it difficult for nonprofits to find honorees for their glitzy gala fundraising events.

  • The spring benefit season in New York (usually heavily funded by Wall Street) has been hurt by the struggling financial sector.
  • Potential honorees are opting out, not wanting the responsibility of asking friends and family for money in such lean times.
  • Some organizations, like Carnegie Hall, have canceled their galas, while others have gone ahead with their events without an honoree.

Facts & Figures

  • Groups earn anywhere from a few percentage points of the annual budget to the majority of a year’s expenses.
  • Nonprofit endowments are down 25 to 30%.

Best Quote

“This idea of getting on the phone and saying, ‘Wouldn’t you like to be honored at our gala?’ – that’s more difficult, more challenging now than in my 30 years of experience at this.” – Will Maitland Weiss, Executive Director of the Arts and Business Council of New York

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