Julian’s comment is on point though. I’ve been involved with any number of charitable organizations where it is expected that people donate significant time for things like bake sales or craft fairs or dinners in order to raise money, where if you took the money raised minus costs divided by the total hours spent, people would have done better taking second jobs at McDonald’s and donating the money.
Plus, we’re often providing a product which wouldn’t sell for that price on the open market, with custom driven largely by people’s affinity for the organization raising the money.
All in all, fund-raisers that aren’t either a good leisure activity for all involved, or relentlessly and professionally focused and profitable (i.e. don’t encourage random volunteers—only those with relevant marketable skills and make sure the venture would at least be break-even if you accounted for fair value of labor) are just a horrendous waste of resources. Just get people to write checks.
And yes I beat this drum at every socially appropriate opportunity for every charitable organization I’m associated with.
You might be underestimating the value of social involvement in your equation. If new people become involved in the organization as a result of a “fundraiser” then this may lead to a higher expected value than direct donation, all things being equal.
From direct experience: Most charities encourage volunteer time for one and only one reason: The more someone has volunteered their time, the higher the expected dollar amount they will donate. The main purpose of volunteering is to establish emotional engagement.
Julian’s comment is on point though. I’ve been involved with any number of charitable organizations where it is expected that people donate significant time for things like bake sales or craft fairs or dinners in order to raise money, where if you took the money raised minus costs divided by the total hours spent, people would have done better taking second jobs at McDonald’s and donating the money.
Plus, we’re often providing a product which wouldn’t sell for that price on the open market, with custom driven largely by people’s affinity for the organization raising the money.
All in all, fund-raisers that aren’t either a good leisure activity for all involved, or relentlessly and professionally focused and profitable (i.e. don’t encourage random volunteers—only those with relevant marketable skills and make sure the venture would at least be break-even if you accounted for fair value of labor) are just a horrendous waste of resources. Just get people to write checks.
And yes I beat this drum at every socially appropriate opportunity for every charitable organization I’m associated with.
The charities are being rational—they’re raising money in a way which is effective given the irrationality of the givers.
Yet another thing where raising the rationality waterline would help us all.
You might be underestimating the value of social involvement in your equation. If new people become involved in the organization as a result of a “fundraiser” then this may lead to a higher expected value than direct donation, all things being equal.
From direct experience: Most charities encourage volunteer time for one and only one reason: The more someone has volunteered their time, the higher the expected dollar amount they will donate. The main purpose of volunteering is to establish emotional engagement.