To Cancel or Not to Cancel – COVID 19 & The Spring Gala Dilemma
The spring fundraising event season is upon us, and unfortunately, so is the coronavirus disease COVID-19. Our clients with events in April, May, and June are grappling with scary dilemmas—to cancel or not to cancel. To go virtual or postpone.
While we at Growth for Good think every situation is unique and must be considered based on the specific set of circumstances, one thing we can say for sure is – do not stop fundraising!
Whether you are an arts group facing a steep decline in ticket sales over the next quarter or a social services agency serving the folks who do not have a “work-at-home option” and will need your services even more, we are certain that fundraising during this human tragedy is likely more critical than ever before.
This blog is devoted to some things to consider when considering your gala plans, recommendations for potentially going virtual, and a little bit of a soapbox speech about why it is important to soldier on and stay focused on raising money.
What to Consider When Thinking About Cancellation or Postponement
Venue Contract – It is time to read the cancellation clauses in detail. Understand which circumstances allow the termination of the contract. Call your venue contact to explore all possibilities (cancellation, postponement, and timing). What we are seeing is that the only way a deposit can be returned is if the City of New York issues a “no assembly” edict. Then the venues can make an insurance claim and return deposits. Remember that most venues operate on a thin margin too. They are likely looking at a bleak next quarter.
Review All Other Vendor Contracts – Contact your AV, florist, auctioneer as soon as you possibly can as you may be able to negotiate termination or postponement terms. Don’t delay these conversations. Always remember these people are also facing financial hardship. Keeping this in mind during negotiations will result in a better outcome for you.
Consider the Vulnerability of Your Attendees – According to the CDC, high risk groups include older adults and people who have serious chronic medical conditions like heart disease, diabetes, HIV, cancer, or lung disease. How does this risk factor into your decision?
Financial Implications – We recommend developing financial scenarios. One should consider the event if you go forward taking into consideration fixed and variable expenses. What is the financial exposure if you cancel? Click HERE for an example of a spreadsheet that we use in making this determination. If you have your sponsor dollars already in the bank and they agree to let you keep them (which is likely), you could come out close to whole if you go virtual before serving 300 dinners at $275 each. Be in touch with your sponsors and do the math. Be realistic.
Consider an Un-Gala or Virtual Event
If you are thinking about an Un-Gala or hosting a virtual event on the very same night, you could send out a message to your guests that says something like:
This year, we are inviting you…
…to stay at home and support Smart Kids. You’ll have the best seats in the house!
If you go virtual, your guests join you via the Internet and have the opportunity to bid on silent and live items. A raffle can be online too. Just remember to get the special online raffle license.
Here are some links to other examples of virtual event resources & ideas:
And, Keep Fundraising!
There are many things we do not know about the pandemic. Here is what we do know:
For human services organizations that provide vital services for vulnerable populations, funding has never been more critical. Most of their clients don’t have an option to work from home. They must go to work or get evicted. They lack basic medical services. The demand for services in 2020 and 2021 is going to increase. This takes money.
Arts and culture organizations – With ticket sales possibly falling off a precipice, fundraising has never been more important.
Education services – With the many disruptions schools may face, there will be even more resources required to educate young people—whom we are counting on in the future to help solve the world’s problems. This takes money.
Medical and health organizations – You will likely face unprecedented demand for services. Philanthropy will play an even more central role in your ability to serve your clients.
The mantra we are living by right now is, “Stay calm and carry on.” Remember also to be kind and to take care of yourself.
