Spend money to make money? It might seem like an oxymoron, but in reality it’s a great fundraising tool for charities to use. Large, extravagant events can benefit nonprofits in a couple of ways.
Everyone likes a party, so why not make some money off of it? That’s part of the mentality that black-tie benefit balls depend on. These events usually charge a ticket price for each person who wishes to attend. While the party may cost the charity $50 per attendee, tickets for entry might cost $250 or more – an easy net gain of $200 per person. Multiply that $200 by a thousand people and you’ve raised $200,000 before anyone even walks through the door. Once inside, a charity might hold an auction or have other mini-events that would contribute even more to their total funds raised.
Besides the monetary benefits, black-tie balls often attract celebrities and other influential people who can raise awareness about the charity. These events are also a great way for a charity to give back to its donors – to thank them for their contributions and (hopefully) continued support. By spending a little money on entertaining their donors, charities are the ones with money in their pockets at the end of the night.