I was inspired by a post The Chronicle of Philanthropy shared that suggested that your organization’s next major donor might never attend a gala. I’d been thinking about galas for some time and was involved in an ROI conversation just a week ago. This post felt timely, so galas…let’s talk about them.

Imagine a perfectly clear evening under the stars. The lights are twinkling, music is playing, and a tray of canapés has just passed by as you sip a glass of wine and laugh with friends. Someone steps up to the microphone, and suddenly you are listening to the most heartwarming story you have ever heard, surrounded by people who share your passion. This is how a well-run gala makes your guests feel. They are brought together by a common purpose, inspired to serve, and motivated to do more. 

Now imagine nine months of collecting auction items in your office, stuffing name tags for half a day, and coordinating a dozen committee meetings that result in staff having more work to do. That can be how a gala feels. But the real question is: is it worth it? 

The short answer is, it depends. What percentage of your annual revenue comes from gala proceeds? How many members of your community are engaged? 

I have worked at two organizations that both had major galas. At one, I made the decision to eliminate it. It was a huge drain on the entire organization, not just the development staff. The organization did not have many local volunteers helping with the event, and the work largely fell to staff. Two full-time employees worked nearly 100% of the time on the gala for nine months. The gala had an expensive ticket price and was seen as an event that divided the community rather than brought it together. The net gain was roughly $200,000. Getting rid of the gala was the right decision, and the fundraising revenue was easily replaced through meaningful prospect work. 

The second organization was a very different scenario. One employee worked full-time on the gala for four months, with four other team members supporting about five hours per week. The gala had a very robust and active committee of volunteers who were eager to do as much as possible. The event raised over $1 million each year. At this organization, the gala was a community builder and frequently sold out. Additionally, the event raised money that gala participants would not have given to the organization if the event did not take place. It served a vital communication purpose and helped the organization educate the community about the importance of philanthropy. It was both a fundraiser and an educational tool. The gala lives on to this day. 

It’s hard to put a price tag on networking. This is one area where fundraising becomes more of an art than a science, but there are qualitative metrics you can use to evaluate ROI. First, calculate the staff time dedicated to organizing the event. Review your actual costs versus dollars raised. Consider the philanthropic behavior of your constituency. Do you raise funds through your gala that would not otherwise be given to your organization? Could the staff time allocated to the event be used to focus on other philanthropic revenue development? Are you using your gala to communicate other important information that you wouldn’t be able to deliver in another way? 

Let’s be honest: you’ll never make every person happy, but you can do the right thing for your organization, community, and colleagues. As you think about your gala this year or in the future, consider both the tangible and intangible benefits. Talk to your trusted advisors and stakeholders. Then make the right decision for the right reasons. Happy New Year!