Can a race be a good fund-raiser?

Posted on 10/03/2009 at 11:39:33 AM by David Patt

A race director told us his event has grown every year and recently fielded a record 136 finishers.  He was proud of the huge profit generated by the race - about $1,000.

This race may be the biggest fund-raiser in that community, but it wouldn't pass muster in a lot of other places.

Since race entries don't cover costs, many races lose money all of the time.  That's fine for many - the race is really serving as a marketing campaign, usually for a hospital, running store, or other business.

But fund-raising organizations can't afford to lose money - ever.  Even a successful event will have to use the majority of its income to pay for overhead.  The net profit has to be worth it.

So, how much profit is enough to justify a race as a fund-raiser?  $1,000?  $5,000?  $10,000?  $25,000?

It depends on the organization's budget, the number of events it conducts each year, the amount of sponsorship and underwriting it can secure, and its interest in fielding a quality event, among other things.

Races are not good fund-raisers.  So why are so many organizations trying to raise money from races?

Posted in Money
1 Comment
Posted Oct 03, 2009 1:26 PM by Sandra Sims
'How much profit is enough to justify a race as a fund-raiser?' That is a great question every planner should ask right from the start. If the purpose is not a fundraiser and the planner wants to only cater to hard core competitive runners that's fine. But it limits the fundraising potential to only target that end of the fitness spectrum. Charity athletic events often appeal to beginner athletes or people whose main motivation is support the charity. Some people participate for both reasons, so attention has to be paid to what draws both crowds. Athletic events can be excellent fundraisers if they are planned and marketed well. According to the Run Walk Ride Thirty study (see http://www.runwalkride.com/research.asp) in 2008 the top 30 “athon” programs generated more than $1.76 billion in gross revenue. Many of those were walks, not competitive races. In my opinion this underscores the importance of being clear on an event's purpose and knowing your target market.

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