The Use of Scratch Cards for Fundraising
The bulk of sports clubs can only operate with a limited budget. As a result, clubs have long investigated numerous strategies to collect funds, ranging from ticket promotions to selling children's merchandise. Scratch card promotion and crowdfunding are two of the most effective ways to raise revenue.
How Scratch Card Fundraising Works
The concept of using scratch cards for fundraising is easy and enjoyable. First, the club is expected to purchase a number of cards from a fundraising organization; the cards will then be delivered to volunteers. Each of the fundraising cards contain a number of scratch off squares or ovals with the amount of donations listed underneath them (Bray, 2013). The club volunteers should distribute the cards to families, friends, co-workers, and other acquaintances to scratch the cards which they donate the amount revealed on the cards. The amount should vary from $1-$10 depending on the company that produces the cards purchased. After the volunteer collects money from the donor, he/she (donor) is provided with a high quality coupons from major retailers and restaurants as an appreciation or reward for participating (Bray, 2013). Thus, the main goal of the scratch card fundraising program would be to distribute the cards to over 10,000 people within the location of the club.
Timeline and Participants in the Fundraising Program
The target time frame for the fundraising program will be three months. During the first 2 weeks, the team members including the coach and the sports director will meet often to discuss how the activities will be conducted. The next 2 weeks will involve purchase of the cards from the company and allocation of the cards to the athletes and other members of the club. Through the other 2 months, all the members of the club will distribute the allocated cards every day, with a greater target expected during the weekends. The total number of athletes expected to participate will be 30 and the remaining members will be 16 including the coaches, managers, and other organizational staff. Considering the total number of cards to be sold; ever member will be expected to issue at least 2 scratch cards every single day. The projected earning is approximately $40,000 with an average of $4 for each card.
Advantages and Disadvantages of Scratch Card Fundraising
There are various advantages associated with using scratch card fundraising programs. It is very effective since no selling is involved; the athletes will only ask for donations instead of selling products. There is also associated low costs since the program does not require delivery of goods to the participant; as such, high profits are expected in return (Warwick, 2000). Scratch cards also require low start-up costs; it could be as low as $30. It is also possible that majority of the people will contribute more than they reveal after scratching the cards; it would, therefore, surpass the targeted amount. A key advantage is that the program can be conducted with any group size. Scratch card fundraising is also associated with various disadvantages (Warwick, 2000). Some of the donors may not understand the reason and need for the fundraising process; this will force the organization members to explain the process carefully in order to influence them to participate. Other donors may also not be interest in scratching cards or pay what is underneath even if it is a low price; thus, the team will be forced to brainstorm a sales and marketing mechanism that will motive potential donors to participate.
The Use of Crowdfunding for Fundraising
Crowdfunding activities
This is a program used by organizations to reach group of people to contribute money for a specific project. A crowdfunding usually takes place on a website or social platform that allows individuals or organizations to raise money as investors and members of the community donate the needed finance (Warwick, 2000). The organization that seeks donation usually explain the project and its significance in order to attract investments and loans from as many people as possible. The crowdfunding project for the club may be the pitch or necessary facilities that enhance sport achievement. As such, it will be important to first generate interest in the club before setting up a team that will run the crowdfunding campaign (Warwick, 2000). The specific means that will be used to implement the program is through selling of an advertising space to different business within the locality. The advert space will be accompanied with attractive add-ons including free club hire for parties, free club shirts, or season ticket for fans.
Goals and Timeline of Crowdfunding Program
The goal of the program will include generating a total of $25,000 within a period of two months. This will be achieved with a priority for greater reward for the fundraising activity. The company will consider rewards with both high and low values stating from $1 to the highest of $3500. This is to ensure that the whole community participates in the process including children and youths. The target timeframe set to achieve the organization goal is two months. There will be a need for 1 week for the executive director of the organization to meet with various campaigning institutions and possible donor companies. There will also be a need for 3 days for meetings with the members of the organization in preparing for the crowdfunding program. The remaining days will be used for promoting the club and reaching out to different people and fans to aid in contributions. The total number of staff and athletes expected to participate is 54; there will be 32 athletes and 22 staff members. In particular, the staff members except for the managers, will work together with the donor companies to create adverts. They will also email fans and other possible donors regarding the project. Each athlete will participate in creating word adverts through one-on-one conversations with fans, families, and friends. The projected earnings from the program will be $25,000 after all costs of advert, gaining press coverage, and reaching out to fans through calls and emails.
Advantages and Disadvantages of Crowdfunding
Crowdfunding also have pros and cons. A key strength of the program is the high returns compared to other programs involving promotion of financial programs. Fans and consumers may also find it more rewarding to engage in such activities that promote a project, hence be compelled to donate even more (Bray, 2013). It may also be a useful way for individuals and organizations to access funds that lenders like banks may not be ready to offer or only provide in higher costs. The program is also associated with higher risks; crowdfunding may make an organization lose the money invested (Bray, 2013). It is likely that most investment made are either in debt securities or shares which can result in loss of capital if the project fails. The costs of advert and campaign may be expensive, thus, reducing the total profit made in the long run.
References
Bray, I. (2013). Effective fundraising for nonprofits: real-world strategies that work. Nolo.
Warwick, M. (2000). The five strategies for fundraising success: A mission-based guide to achieving your goals. San Francisco, CA: Jossey-Bass.
