Nonprofit Event Management- Business Models

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Nonprofit sector in USA

  • 1.58 million nonprofits were registered with the Internal Revenue Service (IRS) in 2011, an increase of 21.5 percent from 2001.
  • An estimated $836.9 billion was contributed to the U.S. economy by the nonprofit sector in 2011(Excluding nonprofit institutions serving government or business), which made up 5.6 percent of the country’s gross domestic product (GDP).
  • In 2012, total private giving from individuals, foundations, and businesses was around $316.23 billion for the first time since the recession started, an increase of nearly 4 percent from 2011.
  • In 2011, almost 1 million organizations were classified as public charities, which represents three-fifths of all registered nonprofits.
  • Close to 56.8 percent of reporting organizations were public charities in 2011.Accounting for more than three-quarters of revenues and expenses for the nonprofit sector, public charities reported $1.59 trillion in revenues and $1.50 trillion in expenses. Assets held by public charities account for more than three-fifths of the sector total.

Source:The Urban Institute

Number and Finances of Reporting Public Charities by Subsector, 2011

$ Billion Percent (%)
Number % Revenues Expenses Assets Revenues Expenses Assets
All public charities 335,037 100 1,593.6 1,498.2 2,856.0 100 100 100
Arts, culture, and humanities
35,164 10.5 30.8 28.1 101.7 1.9 1.9 3.6
Education
58,568 17.5 269.2 243.8 851.4 16.9 16.3 29.8
Higher education
2,094 0.6 174.8 158.8 548.8 11 10.6 19.2
Other education
56,474 16.9 94.4 85 302.6 5.9 5.7 10.6
Environment and animals
15,110 4.5 14.9 13.4 36.3 0.9 0.9 1.3
Health
41,619 12.4 942.4 895.3 1,202.6 59.1 59.8 42.1
Hospitals and primary care facilities
7,308 2.2 798.5 758.4 973.3 50.1 50.6 34.1
Other healthcare
34,311 10.2 143.8 136.9 229.3 9.0 9.1 8.0
Human services
116,643 34.8 202.4 195.8 303.7 12.7 13.1 10.6
International and foreign affairs
7,007 2.1 28.9 28.1 30 1.8 1.9 1.1
Public and social benefits
39,415 11.8 91.4 81 300.1 5.7 5.4 10.5
Religion-related
21,511 6.4 13.8 12.6 30.2 0.9 0.8 1.1


Source:The Urban Institute

Steps in event management

Before the event

  1. Fundraising - which may involve one or more of the following types:
    1. Merchandising - Selling goods to raise fund.Organizations involved : Cafepress, SmartCause Digital
    2. Donation - Donations for the events could also be raised through certain online sources like Crowdrise
  2. Payment processing etc. - Certain bodies are present who work exclusively for non-profit organisation payment processing like Blackbaud, Moolah and BluePay
  3. Handling registration for the event
  4. Accounts book-keeping
  5. Creating event website and keeping it up-to-date like nonprofitCMS and Dot Org Web Works
  6. Recruitment of volunteers - companies like Bridgespan and Volunteer Match
  7. Marketing for the event - companies like Cvent and Coulter Companies

During the event

  1. Logistical support like food, accommodation, lighting, generators etc.
  2. Timekeeers - companies like Chronotrack

After the event

  1. Accounting and auditing of records
  2. Managing mailing list
  3. Communication with participants
  4. Communication with institution for which event was organized


Mind map: Nonprofit Event Management

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Companies

Before the event
S.No Category Companies
1 Fundraising (Online fundraising software) Kickstarter Gofundme Indiegogo YouCaring Crowdrise Causes Donors Choose
Razoo Buzzbnk Start Some Good Causevox Dojiggy Return on Change
2 Fundraising (Merchandizing) Zazzle Cafepress Spreadshirt Printfection Win-Win Sportswear Charity-merchandise
3 Payment processing Paypal WePay Bluepay GiftTool Click & Pledge Qgiv MemberClicks
IATS Contribute Nonprofit Business Solutions Moolah Greater Giving
4 Handling registration for the event Eventbrite Active Network, LLC Avectra Aptean Tendenci Fluitt Solutions
5 Accounts book-keeping EisnerAmper Nonprofit Suite Renner & Company Susan Matlack Jones & Associates  
6 Creating event website and keeping it up-to-date Non-profit CMS Web Start Today Dot Org Webworks
7 Recruitment of volunteers Volunteermatch Bridgespan The Data Bank
8 Marketing for the event Constant Contact Cvent Coulter Companies
9 Donor management (CRM) Zoho NationBuilder Salsa Labs SugarCRM vtiger Blackbaud Wild Apricot
NeonCRM CivicCRM Salesforce Foundation Donor Perfect Bloomerang Sumac Donor Tools
OrangeLeap A good Cloud
Event
S.No Category Companies
1 Logistical support like food, accommodation Axis Global Systems OpenSpark Events Logistics Management MicroTek
2 Timekeepers Chronotrack RFID Timing
3 Event management companies Constant Contact Event Brite Cvent Brown Paper Tickets RegOnline eTouches Ticketbud
Double Knot VolunteerHub Arts People Ungerboeck Your Membership Rotunda Software, LLC Memberclicks
Active Endurance Acteva Greatergiving Vision Event Management Pacific Sports LLC Indra PR
4 Event equipment rentals Vision Event Management
After the event
S.No Category Companies
1 Accounting and auditing of records Intacct AccuFund Abila
2 Event results SofTrek Corporation
3 Managing mailing list & Communication with participants Nonprofit Business Solutions Ahern Donor Communications


Business Models


Value chain for nonprofit companies

Value chain for nonprofit companies


Value chain for event management

Value chain for event management


Fee structure

Fundraising management software
S.No Company Fee for using the software Percentage of the fundraising dollars and transcation fees Technical support and training Custom Website Development
1 Dojiggy DoJiggy Pledge is a complete web-based registration and fundraising management system. $449 annually for up to 100 event participants. This is a single event license.
100 Additional Registrant -$169
No No Yes ($100/hour)
Fundraising through crowdfunding
S.No Company Platform Fees are deducted from each donation Payment processing charges Monthly fees or setup costs Custom Web page design
1 Gofundme Gofundme 5% Wepay 2.9% +$0.30 per donation No No
2 Indiegogo For nonprofit,
reach your goal -3%
don't reach your goal -6.75%
3-5% for credit card or PayPal processing No No
3 Giveforward 5% per transaction 2.9% + $0.50 No No
4 Youcaring 0%. Supported by thousands of contributors. 2.9% + $.30 per transaction
(+ 5% automatic "tip" for donors)
No No
5 Razoo 4.9% transaction fee 2.0% + 30¢ payment processing fee No No
6 Stayclassy 4% Transaction Fee 2.2% + $0.30 /transaction
+1% for AMEX and +1% for International Transactions
$99/Month Subscription fee No
7 Network for Good 3% Transaction Fee 2.9% + $0.30 $69.95/Month. No Set-Up Fees Custom webpage Design Fee: $299
8 Crowdrise Fee of 3%-5% of the funds 2.9%+$0.30 fee from each donation $49/month No
Donor CRM software
S.No Company Software modules subscription Additional fee for users Transaction fees (Payment processing)
1 NeonCRM Up to two modules are included with the Standard NeonCRM monthly fee: Under 15,000 contituent records $149/month.
Each Additional Module: (Under 15,000 constituents) +$40/month
10 users can use at the same time. Additional users: $50/month per 5 users.
2 SugarCRM Sugar Enterprise Edition - $60
user/month
3 Zoho ENTERPRISE: $35 /user /month
4 Salesforce Foundation Enterprise Edition: $30 per user/per month * (billed annually)
first 10 EE licenses are FREE
5 Blackbaud Fund Accounting Software (Financial Edge ESSENTIALS) -$550/MONTH Unlimited users
Fundraising CRM (eTapestry ESSENTIALS) - $199 /month
5,000 Records
Unlimited users
The Raiser's Edge (online fundraising) - Unlimited records Unlimited users 4.95% and $0.30 per transaction



Crowdfunding platform business models

  • Commissions on funds raised:
This is by far the most common of all in the crowdfunding space. It's easy to understand for fund raisers and is also risk-free for them. In fact it's risk-free because you're the one bearing the risk, as you need to pay for software and support without the certainty of earning anything back. In addition, commissions require high volumes to make any good amount of money. Whether it is a crowdfunding or crowdinvesting platform, both have commission-based business models where they take a percentage of the profits (typically 4 – 7.5%) from every successfully funded campaign on their platform.
  • Listing fees:
This one is more common on equity crowdfunding platforms, simply because the structure of the investment doesn't allow for commissions. They can be one-off or monthly. Their advantage is that you're guaranteed to earn these fees whatever happens. On the flip side, you won't benefit from a project's potential success.
  • Transaction fees:
This is a middle-ground between commissions and listing fees. Every time someone makes an investment or a donation, you can add a non-refundable, fixed or variable transaction fee, paying for using the service. It's a little less popular but can prove effective in building sustainable revenues.
  • Additional services:
Most fundraisers will need videos, pictures and marketing. Some will also need more specific services like order management and fulfillment. By offering such added-value services you can make your users' lives much easier and earn more money.

Source:Towema