Great ideas often lead to great things, but investment and fundraising are required at some point. Nonprofits, political causes, and business startups need cash to expand and grow. Although many groups may dream of a mega grant or a super venture capitalist, the support of small donors and individual investors is often the foundation from which everything grows.
One of the most successful ways to attract these people is through small meetings. These “house parties” are a popular and successful way to raise money for nonprofits, political functions, and business enterprises. Although the reasons for these meetings are always to raise funds, the purpose of the money creates subtle differences in the structure and style of the events.
Let’s take a look at all three types of events and see how they vary.
Nonprofit events go by many names, such as ballroom gatherings, house gatherings, house parties, or rounds. The purpose can range from funding for social programs or religious organizations, support for the arts, humanitarian outreach, environmental awareness, or assistance for dozens of other charitable causes.
• These small charity hall gatherings are usually hosted by two or more people who are commonly referred to as co-chairs.
• Successful house parties need two or more months in advance.
• As a practice, the host does not ask for money. Instead, one of the co-chairs or featured speaker will discuss the funding needs and benefits of supporting the organization or cause.
• A popular way to increase donations is to offer matching dollars. This is a popular incentive. A major donor agrees to make a specific donation as long as its amount is matched by other sponsors.
Political fundraising can focus on a single candidate, group of candidates, or local political party. Small group fundraising represents a significant amount of dollars for both older and younger candidates.
• Political parties in the house generally begin with a committee led by a president. In most cases, all members are responsible for bringing guests.
• The purpose must be defined. There may be more than one objective, but each objective must be very clear.
• Unless it is a general fundraiser, a target audience should be defined up front. Food, location, and activities should be geared toward the target audience.
Investor meetings also go by various names, including networking house parties or angel events.
• Although these small parties are often held in homes, informal settings in businesses or prestigious venues are fine too.
• Incentives, perks, and recognized speakers are often used to attract attendees.
• There are some commercial groups available to organize events.
Although the three types of small events have some differences, successful events share many of the same elements.
1. Prestigious location – Private homes are fine and sometimes the best option. Setting the event in a prominent neighborhood or notable home can attract guests and set a financial tone.
2. The organizers set a realistic financial goal with a specific amount they plan to raise.
3. The budget must be established in the initial planning and must be paid in advance. (Dealing with last minute fees or unpaid bills creates a negative atmosphere.) A flawless event is reflected in the organization, the candidate or the company.
4. Leadership must be clear and defined. All team members must write and understand jobs and roles.
5. Time management is very important. If the event is listed as two hours, do not drag on. Working overtime angers potential donors.
6. Aggressively market your target audience. Make sure to budget for the marketing campaign that can include personal contacts, mailed invitations, direct mail, and entertainer contacts.
7. Letters (or calls) of thanks should be sent to all attendees who attended salon meetings or investment parties, whether they invested immediately or not.