Fundraising Cost or Benefit for Nonprofit Organizations

If your nonprofit is looking to grow, it's time to get creative when it comes to fundraising! One of the ways a nonprofit can obtain more funding is by holding special events. Nonprofit organizations holding special events provide brand awareness for their organization, attract donors and potentially new volunteers. We've seen plenty of nonprofit charities, booster clubs, and parent/teacher organizations create successful events to benefit their cause.

Check out GuideStar's 10 Fundraising Tips

Easily managed special events that can significantly benefit a nonprofit include 5k runs, bake sales, golf outings, picnics, beer gardens, parties, car shows, fundraisers and sporting events. However, there are risks associated with holding such events that can often result in a general liability or liquor liability claims.

Learn about special event insurance.

These nonprofit organizations recently experienced a claim at their special event:

A nonprofit fundraising organization held a golf tournament with an entry fee of $200 per person. The tournament lasted three days and accrued over $8,000 in entry fees from its 40 participants. An unlucky two year old spectator who attended the golf tournament tripped over a sprinkler head that suddenly turned on. The toddler suffered a fractured knee cap, and needed reconstructive surgery. Medical bills totaled $10,000 which was more than the event raised in profits. Subsequently an annual package insurance policy was purchased by the nonprofit which included special events coverage easing everyone's mind of holding future events.

Learn about package insurance for nonprofit organizations.

A minor attendee was served a bottle of champagne at a dinner party sponsored by a charity. After leaving the party, the underage attendee got into her car, lost control of her vehicle and struck a telephone pole. She suffered severe facial lacerations. The attendee is sued the charity and the beer vendor for illegal service to a minor to cover his medical bills totaling $150,000