Beyond the Ballroom: Why Smart Event Fundraising is Crucial in an Era of Shrinking Budgets

By Leya Simmons, CEO and Co-founder, BetterUnite

Beyond the Ballroom: Why Smart Event Fundraising is Crucial in an Era of Shrinking Budgets

When I transitioned from my career as a fundraising professional to co-founding a technology platform focused on empowering nonprofits, I witnessed firsthand the rapid evolution and the growing urgency around fundraising events. Today, as organizations face reduced government funding, economic uncertainty, and shifting donor behaviors, events are not just about filling ballrooms – they’ve become strategic necessities.

The traditional gala model, while beloved and still very effective, is often expensive, labor-intensive, and increasingly out of reach for economically vulnerable nonprofits. It’s time for nonprofit leaders to reimagine event fundraising, transforming events from a “nice-to-have” social occasion into strategic tools for survival, growth, and resilience.

The New Fundraising Reality

In recent years, nonprofits have faced a double-edged sword: increased community needs and decreased funding. With tighter budgets, diminishing government support, and economic uncertainty, the conventional ways of fundraising are under pressure. Nonprofit leaders are being asked to pivot quickly, leaning into flexible, adaptive, and scalable event strategies that reach donors effectively, without draining precious resources.

Here are four key principles of smart event fundraising to consider:

1. Move Beyond the Ballroom

While traditional ballroom galas have their charm, they are often resource-intensive, restricting participation to those who can afford high-priced tickets or bid on expensive auction items. Many of today’s successful nonprofits are embracing a hybrid model: smaller, frequent, targeted events designed for engagement and impact, often alongside a single, annual gala.

Examples include: 

  • Micro-events: Small, targeted events that engage specific donor segments with personalized experiences, creating deeper connections and cultivating long-term relationships. House parties, dinner salons, Topgolf excursions with a silent auction, exclusive workshops or masterclasses, Impact Breakfasts or Lunch & Learns are all great opportunities to connect in real life with donors, foster a sense of community among like-minded donors and speak directly to important supporters.

  • Community-based experiences:  Informal gatherings that allow nonprofits to connect with new donors in casual, welcoming environments, dramatically reducing barriers to entry. Neighborhood block parties, fun runs or walk-a-thons, or park events (concerts or fairs) all build goodwill among community members and offer plenty of opportunities for sponsorships and smaller asks.

2. Hybrid-Virtual Events Are Here to Stay

If the pandemic taught the nonprofit world anything, it’s that virtual events are powerful tools – not just stopgap solutions. They are cost-effective, scalable, and inclusive, expanding the potential donor base beyond geographic limitations.

Organizations succeeding in this space are innovating by:

  • Blending in-person and online components: Creating hybrid events that offer flexibility and choice, maximizing accessibility. While there are A/V considerations, streaming can be very affordable, with both YouTube and Twitch offering free options – both of which are commonly integrated into hybrid virtual event tools.
  • Leveraging technology creatively: Using social media platforms, streaming services, and interactive tools like live auctions and raffle wheels to engage attendees both in the room and online.

3. Impact-First Fundraising

Today’s donors are not content merely attending events—they want to actively see the impact of their support. Event fundraisers need to clearly demonstrate tangible outcomes, connecting donor dollars directly to measurable change. Prior to the event, nonprofits can assess their attendee list through wealth-screening or donor insight software to better understand their guests and create opportunities for support at particular giving levels or engagement opportunities. Post-event, organizers can use segmentation and personalization tools to provide follow-up emails and calls to donors tied directly to the causes that resonated with donors.

Best practices include:

  • Real-time impact tracking: Highlighting tangible outcomes during the event itself, such as live tracking of funds raised and immediate allocation toward specific initiatives.

  • Donor storytelling: Sharing authentic, emotional stories from beneficiaries that clearly illustrate the difference donors make, both before and after the event.

4. Invest in Donor Relationships, Not Just Transactions

Events must prioritize relationship-building rather than merely raising immediate funds. Especially in uncertain economic climates, long-term donor loyalty is paramount. When donors naturally have heightened caution and awareness around their gifts to nonprofits, communicating impact and highlighting like-minded communities of donors is especially important – and especially easy to do at events.

Consider:

  • Personalization: From targeted invitations to post-event follow-ups, personal touches matter. Small gestures – handwritten notes, personalized thank-yous, recognition of specific contributions – have outsized impacts

  • Community cultivation: Using events as platforms to foster community, connecting donors not only to the cause but also to each other, creating a sense of shared mission and collective impact.

Thriving Amid Uncertainty

Economic uncertainty and declining public funding don’t have to spell disaster. They can inspire innovation, compelling nonprofits to rethink how they approach event fundraising altogether. When events are strategic and impact-focused, they become far more than just fundraising or social gatherings – they’re opportunities to deepen relationships, expand donor communities, and build resilience for the future.

Nonprofit events, when executed mindfully and strategically, are not simply fundraisers; they’re catalysts for transformative change and collective action.

In these uncertain times, moving beyond the ballroom isn’t just smart – it’s essential.