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About Percentage of Fundraising Profits

by the AFRDS


Too often percent of profit becomes the decisive factor for choosing one fundraising program or company over another. Some groups flat out refuse to do business with companies who offer percentages beneath a certain level. Is this a wise practice? We asked a couple of product fundraising professionals just how important percentage is when making sound fundraising decisions.

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I do not engage in bidding wars over percentage. As a result, my customers know my prices are fair and the services are worth it. If a company is offering a higher percentage, find out why. It usually means product quality or service is less than you expect or the retail price is higher than it needs to be -- all of which will ultimately hurt sales.

                                                                                                                                             Jamie Silver, Miami, FL

"You can't put % in the bank." It may sound trite but it's true. Percent of profits is important but it's not going to make or break a fundraising project. Product quality, service and delivery are more important especially now that there are fewer volunteers with less time to invest. It's naive to think that you're not losing something when you gain even a few percentage points.

                                                                                                                                              Kurt Koehler, Kutztown, PA

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About the Author:

This article is from the March 2000 issue of the Fundraising Edge, an online publication of the Association of Fund Raisers and Direct Sellers and is reprinted with permission. Visit their web site at http://www.afrds.org/ for more information and a look at the complete issues of the Fundraising Edge.



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