Parties with a purpose

Charity events fill the community calendar nearly every weekend in Colorado Springs. There are dinners, dances, auctions, golf tournaments, wine tastings, bowl-a-thons, walks and runs - the list goes on.

Such special events have become a popular way for nonprofits totry toraise sorely needed funding. About half of all charities in the nation host special events, according to Charity Navigator, a Mahwah, N.J.-based industry evaluator.

But a special event is nothing like throwing a birthday party for a 4-year-old.Special events are labor intensive and require months - if not years - of manpower from staff and volunteers.

And unless they're properly orchestrated, special events may not be profitable enough to make the effort worthwhile, industry experts say. On average, charities spend $1.33 to raise $1 in contributions from special events, according to a 2007 Charity Navigator study.

Despite the potential for problems and the poor odds of getting a hefty monetary return on the investment, nonprofit organizations say special events are worthwhile because they raise awareness about what an organization does and help draw new donors.

"Anyone will tell you an event is the one of the hardest ways to make money because there's so much planning and detail, but at the end of the night, people enjoyed themselves, know more about your organization and feel more strongly about your cause," said Rochelle Schlortt, spokeswoman for Catholic Charities of Colorado Springs.

Defining an event as a success or failure depends on the criteria the organization sets, said Cynthia Bullock, president of the board of Dreampower Animal Rescue, an animal-adoption service.

The nonprofit's 10th annual "Whiskers and Wine" dinner and auction, held in October, had lower attendance than in previous years, which Bullock attributes to the slow economy, and likely won't produce the profit it has in the past.

"But we attracted a potential new board member and new business members - and we look at that as well," she said.

Time commitment

In its 26-year history, Ecumenical Social Ministries has never hosted a special event to raise money - until this year.

The consortium of eight downtown churches that helps low-income families will debut its Festival of Trees on Friday and Saturday at the Pro Rodeo Hall of Fame, starting with a $100-per-person dinner and dance Friday.

On Saturday, the festival opens with 90 designer trees decorated by business sponsors.

There will also be visits with Santa and a gift shop full of Christmas décor.

As ESM officials discovered, putting on a fundraiser is a staggering commitment:The project was two and a half years in the making. The first step was convincing board members it was a good idea.

"Events aren't cheap, and people get nervous about spending and raising money," said Tami Forero, a local event planner hired by ESM.

The organization's goal is to net $30,000 from this year's festival and increase the size and scope in subsequent years, said executive director Carolyn McDole.

The budget for the inaugural event is $163,000, she said, more than it is likely to be in subsequent years because of the initial investment of designing a Web site, sending staff to research similar events in other cities and other expenses.

The organization, which helps about 18,000 people each year with emergency services such as food and job assistance, is banking on the event being a long-term investment, McDole said.

"We're going to crawl before we walk," she said.

"You have to know your audience, your primary attendees, how to market it, how to get business sponsors.

"We'll also have testimonials from clients who feel we've made a difference in their lives to provide an awareness of our organization."

Catholic Charities of Colorado Springs, which operates the city's primary soup kitchen and provides services for the homeless, pregnant women and families, also realized it would take time to increase the viability of its sole special event, an annual St. Patrick's Day Gala.

The inaugural gala in 2002 had fewer than 200 people in attendance. It was held in a school gym and made only $3,200.

This year's bash attracted 500 people and netted $140,000, Schlortt said. The organization also decreased expenses from 65 percent of revenue in its first year to 24 percent this year.

Several factors have turned the fundraiser into "one of the must-attend events in town that people put on their calendars months in advance," Schlortt said.

Among the strategies, she said: moving the venue to a hotel ballroom; adding new moneymaking elements each year, such as a big board auction and pot-of-gold raffle; keeping ticket prices low to increase volume; adhering to a casual dress theme as an alternative to black-tie events; purchasing an auction software package to scan credit card purchases; and keeping it fun.

"We've been able to bring more sponsors on board and communicate to our donors what we do. In return, they have deepened their commitments," she said.

Getting the word out

Not all organizations are sold on special events to raise funds. Dreampower Animal Rescue has moved away from them because they're a risk, said Bullock, the board president.

"They're labor intensive and cost money - and you don't always know if you'll make money," she said.

The organization pared its special events from several a year to only one - the

"Whiskers and Wine" auction and dinner - because of the difficulties involved, including vying for business sponsorship with hundreds of other local nonprofits, she said.

"If we viewed the event in terms of how much it will bring in, we probably would have canceled it years ago. The event draws attention to our cause," said Bullock, who also is director of annual giving for the Penrose-St. Francis Health Foundation.

And that's OK, Forero said, because events aren't meant to carry an organization's entire budget or even solve shortfalls.

They're intended to supplement an existing development, marketing and branding plan.

Nonprofits also should not rely on begging for donations from corporations and mom and pop operations, said Forero, whose company is making a how-to video on event planning.

Forero suggests organizations sell sponsorships that include advertising and promotions so companies get something in return for their donations of food, services and auction items, besides a tax write-off.

"We want nonprofits to look at fundraising as a business, as much as a charity," Forero said.

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Contact the writer: 636-0235 or debbie.kelley@gazette.com