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.
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.