How To Budget For Your Charity Fundraising And Keep Costs Down

When you start charity fundraising, it is natural to concentrate on how much money you hope to raise. What can be easier to overlook is how much your fundraising itself might cost, particularly if you are planning events or activities alongside asking people for donations.

A little budgeting at the beginning can help you make better decisions throughout your campaign. By understanding your likely costs, looking for ways to reduce them and thinking about how much each activity could realistically generate, you can make sure your fundraising efforts are worthwhile without spending more than you intended.

Set A Charity Fundraising Budget Before You Start

Before organising activities or buying anything for your fundraising, decide how much you are personally prepared to spend. You might be happy to cover a few small costs yourself, but that does not mean every expense connected with your campaign should automatically come out of your own pocket.

Your budget does not need to be complicated. Make a simple list of the things you think you may need to pay for and put a realistic figure alongside each one, then leave some room for costs you may not have anticipated.

Setting a limit at the beginning can also help when new fundraising ideas come along. Instead of deciding whether something sounds exciting, you can ask whether it fits your budget and whether the likely return justifies what you would need to spend.

Read our guide to planning your charity fundraising here before you start.

Don't Confuse Income With Money Raised

If a fundraising event takes £1,000 in ticket sales, donations and other income, that does not necessarily mean it has raised £1,000 for your charity. If it cost £400 to organise, the financial result looks very different.

This distinction is particularly important when comparing different fundraising activities. An event generating £800 with £500 of costs may ultimately contribute less than a much smaller activity that brings in £500 but costs only £50 to organise.

Keep track of both figures throughout your campaign. Knowing how much money is coming in is useful, but knowing how much is left after legitimate fundraising costs gives you a much clearer picture of how effective an activity has been.

Budget Properly For A Fundraising Event

If you are planning a fundraising event, work out the likely finances before committing to it. Start by listing everything you might need to pay for rather than concentrating only on the most obvious expense.

Depending on the event, costs might include a venue, food and drink, equipment, entertainment, prizes, decorations, printing, promotion or payment processing. There may also be smaller costs that seem insignificant individually but quickly add up when combined.

Once you have estimated the costs, look at the other side of the budget. Work out how many people you realistically expect to attend, what they might pay for tickets or entry and whether you expect to generate additional donations or income during the event.

Be realistic rather than building the budget around the best possible outcome. If an event only works financially when every ticket sells and everybody spends more money once they arrive, you have very little room if attendance is lower than expected.

Work Out Your Break-Even Point

For an event or activity with significant costs, calculate how much money needs to come in before those costs have been covered. This is your break-even point, and understanding it can help you judge whether the activity makes sense before you commit to spending money.

If an event costs £300 to organise and tickets cost £10, for example, the first 30 ticket sales would be needed simply to cover those costs before any additional income could contribute towards the fundraising. If you realistically expect only 35 people to attend, you should question whether the event is the best use of your time and resources.

You can then look at ways of changing the numbers. Reducing costs, increasing realistic attendance or adding another source of income could make the activity more worthwhile, while an unattractive break-even point may be a sign that you should choose something simpler.

Look For Costs You Can Remove

Before paying for something, ask whether you actually need it. Fundraising events do not have to look professionally produced, and supporters are unlikely to expect expensive decorations, elaborate printed materials or unnecessary extras when the purpose of the activity is to raise money for charity.

Look at each item in your budget and decide whether it is essential, useful or simply nice to have. Removing several small non-essential expenses can make a noticeable difference to the amount ultimately generated by an activity.

Digital promotion can also reduce some costs. Rather than automatically printing large numbers of posters or invitations, consider whether email, messaging groups, social media or your workplace communications can do much of the job instead.

Ask For Goods And Services To Be Donated

Reducing an expense to zero can be more valuable than finding a cheaper supplier. Before paying for a venue, prizes, refreshments, printing or equipment, consider whether somebody might be willing to provide them free of charge to support your charity fundraising.

Your employer can be a useful place to start. Depending on what you are organising, your workplace might be able to provide a room, printing, equipment or another resource that would otherwise cost money.

Local businesses may also be willing to help, particularly if you explain clearly what you are fundraising for and exactly what you are asking them to contribute. A donated prize, free venue or supply of refreshments can substantially change the finances of a fundraising activity.

Do not assume that support will be available, however, and never include donated goods or services in your budget until they have actually been confirmed. Build your plans around what you know rather than what you hope somebody might provide.

Read more about how to approach companies for charity fundraising support here.

Music nights can be a great fundraising opportunity, but costs can be high.

Keep A Simple Record Of What You Spend

Fundraising can take place over several months, making it surprisingly easy to forget smaller amounts you have spent along the way. Keep a basic record of your expenses from the beginning rather than trying to reconstruct them at the end.

You do not necessarily need specialist software. A spreadsheet or simple document recording the date, item and amount can be enough for an individual fundraising campaign, particularly if you update it whenever you spend something.

Keep receipts or other records where appropriate as well. This becomes especially useful if somebody else is helping with the fundraising, your employer is covering particular expenses or your charity needs information about the way an activity has been organised.

Be Careful About Spending Money Upfront

Some fundraising activities require you to spend money before you know how successful they will be. Hiring a venue, ordering large quantities of food or paying for entertainment can leave you financially committed long before the first ticket has been sold.

Where possible, reduce that risk. You might sell tickets before confirming optional extras, choose suppliers with sensible cancellation arrangements or start with a smaller activity that can be expanded if demand is stronger than expected.

Think particularly carefully before committing a large amount of your own money. Fundraising should not leave you struggling financially because an event attracted fewer people than you hoped.

Don't Spend Money Just To Make Fundraising Look Impressive

It can be tempting to compare your fundraising with other people's campaigns, particularly when you see elaborate events or professionally produced materials. Bigger does not necessarily mean more successful.

A simple activity with minimal costs can produce an excellent return, while an ambitious event can take weeks to organise and generate relatively little once all the expenses have been considered. Judge an idea by what it can realistically contribute to your fundraising rather than how impressive it looks.

The same applies to promotional materials. Your personal story, the reason you are supporting the charity and the challenge you are taking on will usually matter more than expensive banners, decorations or other extras.

Think About Your Time As Well As Your Money

Not every cost appears in your bank account. Your time also matters, particularly when you are fundraising alongside training for a marathon, half marathon or another event.

An activity that raises £100 but takes several weekends to organise may not be the best choice if another approach could generate a similar amount with much less work. There is no single correct calculation because you may genuinely enjoy organising events, but the time commitment should still be part of your decision.

This becomes increasingly important as your event approaches. Your training, recovery and other commitments still need attention, so avoid creating an expensive or complicated fundraising activity simply because you feel you should be doing more.

Review Your Budget As Your Fundraising Progresses

The budget you create at the beginning does not have to remain unchanged. As your campaign develops, you will have a better idea of which activities work, what things actually cost and how close you are to your fundraising target.

If you are already close to your target, you may decide that an expensive event you originally considered is no longer necessary. If you still have a significant amount to raise, reviewing the numbers can help you choose an activity with a realistic chance of closing some of that gap.

Use what you learn from each activity as well. If something costs more than expected or generates less money than you hoped, factor that experience into whatever you plan next rather than automatically repeating it.

Read more about what to do if you're still short of your fundraising target here.

Make Every Pound, Dollar Or Euro Work Harder

Successful charity fundraising is not simply about generating the largest possible amount of income. It is also about making sensible decisions about the money you spend along the way so that your efforts produce a worthwhile result for the charity you are supporting.

Set a charity fundraising budget, understand the real costs of your activities and calculate the likely return before committing significant money. Look for donated goods and services, keep track of what you spend and be prepared to change an idea if the numbers do not make sense.