Why Your Gala Might Be Hurting Your Fundraising Strategy
- Michelle Crim, CFRE
- 9 hours ago
- 2 min read
Galas once served as fundraising cornerstones for many nonprofits. Today, their value deserves closer scrutiny. When expenses grow, engagement fades, and return declines, then a nonprofit needs to reassess whether the gala still serves the mission or if it’s become a distraction.
The Illusion of Success
A full room and sold-out tables feel like a win. But that energy can mask low net revenue and poor donor retention. Events often feel successful in the moment but deliver weak long-term fundraising results.
Questions to ask:
Did guests become donors?
Did we spend staff time that could have gone toward more effective fundraising activities?
Did the event build lasting relationships or just cover costs?
Warning Signs to Watch
Net revenue is declining
Track income after expenses. If production costs climb each year but donations stay flat, the event drains resources.
Here is a guide:
60–70% net = solid, healthy event
70–80% net = strong, efficient event
Below 50% net = warning zone, review required
Donor conversion is low
If most attendees buy a ticket but never give again, the event lacks fundraising impact. Transactional guests aren’t mission partners.
Event fatigue is growing
Board members, staff, and volunteers may quietly signal burnout. Sponsors may stop renewing. Attendance dips despite more marketing.
Event goals are unclear
If the goal is “we’ve always done this,” rather than “we raise $150,000 in net revenue from major donors,” the event needs a reset.
Mission is disconnected
Galas sometimes lose the link to purpose. If the audience remembers the entertainment more than the mission, the message got lost.
How to Evaluate the Gala’s Real Impact
Create a simple event review tool with these data points:
Total income vs. all expenses (including staff time)
Number of new donors acquired
Number of repeat donors who increased giving
Number of attendees who took action post-event, such as scheduled a visit, joined a committee, or volunteered
Include qualitative data:
Did the event feel connected to the mission?
Was the audience aligned with your donor base?
Did it generate meaningful follow-up conversations?
Options if the Gala Isn’t Working
1. Sunset the event with intention. Use data to explain the decision to your board and supporters. Be transparent. Share how shifting time and money into major gifts, monthly donors, or other strategies aligns better with your goals.
2. Reimagine the format
If the gala feels tired, reduce scale, focus on engagement, and make it mission-centered. Swap a ballroom for a behind-the-scenes tour or donor appreciation night with stories of impact.
3. Use milestone events
Make events occasional, not annual. Tie them to agency anniversaries or major campaign launches where celebration reinforces purpose.
4. Shift the goal
Move from ticket sales to donor activation. Invite loyal donors to host tables and share their story. Focus on relationship-building, not performance.
A gala shouldn’t run your fundraising strategy. Treat this like any other investment where you evaluate outcomes, weigh the opportunity cost, and adjust as needed. Effective fundraising builds on what works today, not what worked ten years ago.
Cheers,
Michelle Crim, CFRE
Dynamic Development Strategies can help. We offer coaching, grant writing, and fundraising services for our nonprofit clients. We specialize in small to mid-size organizations because we understand your challenges. Please contact us for more information.