Are Charity Events a Thing of the Past? How to Raise Money in Today’s World

For decades, charity events were the go-to method for nonprofits to raise large sums of money. Lavish galas, black-tie auctions, and in-person fundraisers were seen as the pinnacle of philanthropy. 

But as times change, so too have the preferences of donors—especially younger generations. The rising cost of in-person events, combined with new digital tools and a growing desire for transparency and inclusivity, has led many organizations to rethink traditional high-cost fundraising events.

So, are charity events a thing of the past? Not entirely. But there’s a clear shift in how organizations can raise money effectively. As charities rely less and less on traditional events, they are adopting new methods to attract younger donors and achieve their fundraising goals.

The Shift Away from Traditional Fundraising Events

High-cost charity events such as galas, banquets, and auctions have long been mainstays in philanthropy. However, their effectiveness is starting to wane.

High Costs

One of the biggest challenges with traditional events is the significant upfront investment required to host them. From booking expensive venues and catering to managing logistics and entertainment, these events can be cost-prohibitive, leaving less money for the actual cause. And in an era when donors increasingly care where their dollar is going, high expenses on venues and fancy decor are less appealing.

Donor Fatigue

Traditional fundraising events can also lead to donor fatigue. Younger donors, in particular, are often put off by what they perceive as exclusive and outdated gatherings.

Many feel more connected to causes that embrace inclusivity, transparency, and direct impact. A recent study by Fidelity Charitable found that millennial donors are more likely than other generations to give online, reflecting their desire for convenience and digital engagement over in-person events.

The Pandemic and Its Aftermath

The COVID-19 pandemic also dramatically altered the fundraising landscape. When in-person events were canceled, many organizations shifted to virtual alternatives, discovering new ways to engage donors while cutting down on event costs. These virtual options continue to thrive, providing nonprofits with a sustainable model that doesn’t rely on physical gatherings.

Declining ROI

The return on investment (ROI) for traditional fundraising events has also decreased. Nonprofits are finding that they do not always receive the donations they need to justify the cost and effort involved in large-scale events. This has prompted many organizations to explore more cost-effective fundraising methods.

Fundraising in the Digital Age: Leveraging Online Platforms

One of the most significant shifts in fundraising has been toward digital platforms, which allow nonprofits to engage donors on a wider scale with lower overhead costs. These digital fundraising methods are particularly effective in attracting younger donors.

Crowdfunding Campaigns

Crowdfunding platforms like GoFundMe and Kickstarter have transformed how organizations raise money. These platforms allow nonprofits to share a compelling story, set clear financial goals, and receive contributions from a global audience. Crowdfunding particularly appeals to younger donors who prefer making contributions in smaller amounts while still feeling connected to a cause.

Peer-to-Peer Fundraising

Another effective method is peer-to-peer fundraising, where individuals or teams raise money on behalf of a nonprofit. They use their networks to generate donations, which can expand the nonprofit’s reach beyond its existing base of supporters.

The social nature of this type of fundraising appeals to younger donors, who are more likely to contribute when encouraged by friends or influencers. To make it work, nonprofits can provide toolkits, templates, and social media assets to help supporters run their campaigns successfully.

Subscription-Based Giving Models

Another modern fundraising trend that is gaining popularity, particularly among younger donors, is subscription-based giving.

Monthly Donor Programs

Much like how subscription services like Netflix or Spotify have become staples in people’s lives, monthly donor programs provide nonprofits with a predictable and consistent source of income. Donors sign up to contribute a set monthly amount, automatically debited from their accounts.

Younger donors appreciate this model for several reasons: it’s budget-friendly, easy to manage, and allows them to contribute consistently without having to remember to make donations. In return, many nonprofits offer perks such as exclusive content, behind-the-scenes updates, or virtual access to the organization’s work. 

Monthly giving programs also allow nonprofits to build stronger relationships with donors. Because the contributions are recurring, donors are more likely to stay informed and feel emotionally invested in the organization’s work over time.

Hybrid and Immersive Fundraising Experiences

Other nonprofits are getting creative with hybrid and immersive fundraising events. These methods combine elements of traditional and virtual experiences to create unique, engaging opportunities for donors to get involved.

Virtual Events and Social Media Challenges

Virtual events, such as live-streamed fundraisers, online auctions, or fitness challenges, have become increasingly popular in the wake of the pandemic. These events allow nonprofits to reach a broader audience at a fraction of the cost of traditional in-person events.

In addition, social media challenges like the ALS Ice Bucket Challenge or Movember (a campaign encouraging men to grow mustaches supporting men’s health) have proven highly effective at engaging younger audiences. These campaigns are interactive and encourage participation beyond donations—there’s an element of fun that makes these campaigns easier to share across social networks, which can broaden their impact.

Interactive Storytelling

Some organizations also incorporate immersive technologies such as virtual reality (VR) or augmented reality (AR) into their fundraising efforts. These tools can give donors an inside look at the impact of their donations by allowing them to virtually “walk through” the communities or projects they are supporting.

For example, a nonprofit working to provide clean water in developing countries might offer donors a VR experience where they can see firsthand how their contributions are improving lives in a rural community. This type of storytelling creates a powerful emotional connection and makes donors feel more directly involved in the organization’s mission.

The Future of Fundraising

While traditional galas and auctions may no longer be the centerpiece of fundraising, charities have a variety of other tools at their disposal for encouraging donations. Nonprofits that adapt to modern, digital methods will find new ways to engage donors, particularly younger generations who value transparency, inclusivity, and impact. The future of fundraising is not just about replacing old methods but enhancing the donor experience to inspire the next generation of philanthropists.