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Because dollars are tough to find these days, some nonprofits are considering galas as a fundraising solution. While it is true that there is an abundance of galas across the country, it is also true that any nonprofit can launch a gala, regardless of the competition.  The essential ingredients include board involvement; some connections to business leaders and wealthy individuals; a great story or case that will resonate with prospective donors; and experienced gala managers to provide direction, fundraising expertise, cost containment, and production capability.

Galas are great vehicles to broaden the donor base, but they are not easily executed and many are not successful.  Most nonprofits achieve a net income of 50% on a first time gala, if professionally managed, and if the gross revenue is above $250,000.  As time goes on, and as the event is annualized, gross revenues tend to grow faster than expenses, thus increasing net income.  A mature $1 million gross revenue event can easily net 65-70%.

For those of you thinking of creating a fundraising gala, these questions will guide you as you make your decision. Until you can answer "yes" to all of these questions, you might want to hold off on starting a gala.

Since the start of our partnership in 2000, OAI has helped the The Marriott Foundation for People with Disabilities' annual Bridges Gala become a highly successful fundraiser. The Gala has raised over $12.2 million for the organization, including the record-breaking $1.36 million raised in 2013.

• Have I defined the appropriate fundraising goal for the gala?
  A gala may be seen as a way of raising money to make up the difference in your operating and revenue budgets. But, you need determine a realistic fundraising goal. Take your top 10 individual and corporate donors and determine how much more revenue you could raise if they gave a certain percentage on top of their annual giving. Then add in how much the volunteers and board should be raising -- either by giving themselves or asking for gifts through their personal networks. Then add in ticket sales. Does the total number you could raise make sense when measured against the expenses of the gala and the staff time that will be taken away from other priorities? If not, you might need to rethink the idea of having a gala or determine if this is a good investment leading to higher revenue in the future.

• Do I have a leadership strategy? 
  You must have full buy-in on the gala strategy from your board, staff, and major stakeholders in order to be successful.  Your nonprofit's staff must support the gala and the board must "own" the full fundraising goal of the gala. If the board is not willing to share their personal and professional networks; sign letters and make calls; speak to the mission of the nonprofit; and perform stewardship once the gala is over, you will find it next to impossible to be successful. On the other hand, this could be a chance for some of your new or more junior leaders to become gala chairs and show their potential.

• Can you obtain a "draw"?  
  With so many competing galas, you must find a reason for your gala to be the donor's choice. Finding a keynote speaker or honoree that is a "draw" will convince people to attend your gala. Even better, the keynote speaker or honoree will become invested in your nonprofit's mission. Many honorees will open their networks to your gala and you will experience an exponential increase in the visibility of your nonprofit. Another strategy to draw donors is to bring in talent that gets attention from the media and your stakeholders. A unique venue (or using your nonprofit as a venue, where possible) can also bring in donors who might not give otherwise. If you create a must-go gala and market it well and to the right audience, you will surely find success.

• Are my programs/volunteers ready to be on display to the public and media? 
  Galas increase the visibility of programs and volunteers. If your nonprofit's programs, leadership, and volunteers are not ready to be in the spotlight, then a gala might not be your best solution at this time.

For the past 18 years, OAI has partnered with Youth, I.N.C. for its annual A Celebration to Benefit New York Kids. In 2012, more than 1,000 guests and 14 partner nonprofits gathered in the Waldorf Astoria's Grand Ballroom for a fun, beautiful evening which raised nearly $2 million.

• Do I have a gala fundraising strategy? 
  Crucial to a successful gala is a strategy that uses a natural circle of high-net-worth and corporate donors who give annually, and who might give more if you have a gala. A good strategy will incorporate an upcoming or existing campaign, an important anniversary, or a new program as the theme of your gala. If you have gotten this far through the check list and have a realistic revenue goal, a leadership strategy, a draw, and programs and volunteers that are ready for the public eye, then you have all the key components of a successful fundraising gala.

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Since its founding in 1991, OAI has managed hundreds of large-scale events annually with budgets that range from $250,000 to more than $2 million spanning formal black-tie galas, award dinners and intimate gatherings at embassies and private residences, large-scale conferences, week-long community festivals, and sporting events such as golf and charity basketball tournaments. If you are interested in starting a new fundraising gala for your nonprofit or need guidance in reinventing your existing gala, please contact OAI today at [email protected] or (202) 338-6100.