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  Home / Fundraising Resources / PR 2
 Why do you give away 50% of your profits?


11/30/2007

As the owner of a school fundraising company I am often asked the question, “ Why would any one give 50% of the schools profit to a fundraising company?”

I always give the same response, which is, “I wouldn’t!”

That being said, I am not a PTO president or coach that just wants an easy unique fundraising idea.

The reason a school would give half of the profits from the school fundraiser to an outside company are fear and lack of time. The fear of failure if you change anything and the fact that people are busy and believe it is very time consuming setting up a school fundraiser. I understand both of these feelings, and believe that they can be overcome. This becomes evident by simply reviewing the process of a school fundraiser.

School fundraising has always been handled by a sales representative that monitors the adults, who then do all of the hard work monitoring the kids participating in the fundraiser. Then this person is sometimes there to unload the merchandise and is always there to collect 50% of the profits.

Most schools will continue with the same fundraising program year after year once they find a successful program. Statistics show that sales from a successful fundraising program will maintain or grow year over year if circumstances are similar.

I believe this happens because the group conducting the fundraiser streamlines the process and the community buying the product is conditioned to buy. It doesn’t matter weather the group is doing a discount card fundraiser, a cookie dough fundraiser or a candle fundraiser.

If the group doing the fundraiser is getting better at conducting the fundraiser and the community is getting stronger expectations of the product, therefore creating less work for the sales rep, shouldn’t the school make a higher profit percentage?

I believe the answer is yes. ESC Promotions used to have offices in a number of different states. We would go out and conduct direct sales just like every other school fundraising company. Times have changed and so has ESC Promotions. ESC Promotions now offers a full range of products and has inside phone consultants standing by to handle any questions. This is why we are able to offer a higher profit percentage on our products. For example we offer up to 90% profit on some of our school discount cards.

I am not proposing doing away with a personal relationship in the fundraising process. I am simply saying there are a number of good companies like ESC Promotions that have utilized technology to allow clients to get the same great service while making more money.

 



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