With every new fundraiser that is out these days, there is one thing that stands true, that truth is minimum expectations. Whether you are selling cookie dough or swag for your team, every person who is a part of the team or organization has a set limit they need to reach in order for the group to hit their goals. Students who are involved in extracurricular activities have become accustomed to this principle. This is common among many fundraisers and in this post, we hope to tell you how to set realistic minimums and goals with all of your fundraisers.
Our first recommendation is using basic math. Find your minimum product or profit margin item and know that will ultimately be your most sold item because, in theory, it should be your cheapest item. Once you’ve found that amount, use it as your base price. Next, take the number of active participants you have, followed by the number of funds you need for the budgeted goal, and divide that number by the number of students you have. You should get the number of funds each student should raise. Then, divide that number by the minimum price of the cheapest item.
$15 minimum profit
25 active members
$3,000 divided by 25 Students= $120 each participant
$120 divided by $15 = 8 items
Eight items sold becomes the minimum for each active participant. So now if they do happen to sell a higher profit margin item you will exceed your goal, but if they only are able to sell the lowest profit item and only sell the minimum you will still reach your goal. Fundraising ideas are always evolving and changing but one thing will always stay the same and that is minimums. Setting the correct minimum will set your year up for a success or a failure.
As leaders, we must be smart and thoughtful to the active participants and keep two things in mind.
- We must give the participants a reachable minimum. To ask a participant to sell too much isn’t fair to them or your organization.
- Give your participants a sellable product. If the product is something no one wants, it puts your organization in a place where it could possibly not raise the funds needed.
In leading if we set minimums and there are some that don’t reach their minimum there must be a consequence. If we don’t have consequences then there really isn’t a minimum, its more of a recommendation. Minimums must be fair and equal across the board.
So to recap, in setting minimums for any fundraiser idea we must do the simple math and find the numbers. Second, we must give our participants a reachable minimum and a sellable product. the final thing we must as leaders do is the hardest part and that in enforcing the minimum set. We will set ourselves up for success and reach our goals with simple math and strong leadership.