The Gala Is Dead: Why In-Person Fundraising Events Need to Go Away (Forever)

Your fundraising event probably (definitely) costs more than it raises—and no one really wants to go.

I said it. I stand by it. And deep down, you know it’s true. That annual gala, the charity 5K, the “wine-and-cheese for a cause” night? It's not a strategy. It's a security blanket. And it’s keeping your nonprofit from building real, scalable, sustainable fundraising.

We know this is hard to hear. You’ve been doing this for years. Your donors expect it. Your board loves it. Your development assistant — or even worse, YOU — spent 40 hours chasing a $100 gift card for the raffle. But here’s the problem:

You Are Spending Way Too Much for Way Too Little

The 2023 M+R Benchmarks Report puts it bluntly: the average return on in-person fundraising events is $0.50 for every dollar spent. That’s right—you’re burning half your revenue just to throw a party that may or may not result in repeat gifts.

This doesn’t even account for soft costs: staff burnout, donor fatigue, venue drama, and the emotional toll of watching your development director weep over a missing AV adapter 30 minutes before showtime.

Events are expensive. But more importantly—they’re just not that effective.

Your Donors Are Spending, Too—Just Not On You

Here’s the part no one wants to say out loud: your donors are blowing their own money just to attend your event. And guess what? That money isn’t going into your mission.

Think about it: for every gala invite, your donor is calculating their own “all-in” event budget. That includes:

  • $300 for a new dress or suit

  • $150 for hair, makeup, nails

  • $100 for a limo or rideshare

  • $50 for parking, because valet wasn’t included (rude)

  • $500 for the babysitter and late-night pizza

By the time they get to the paddle raiser, they’ve already subconsciously spent their donation on themselves. That $1,000 they could’ve given to your mental health program? It went to Rent the Runway and a pre-event mimosa brunch.

So while you’re sweating over whether the centerpieces match the mission statement, your donors are calculating how much they have left to give after their night out.

And It’s Not Even Building Loyalty

Even if your event hits capacity and the silent auction slaps, there’s still this brutal truth:

According to Classy’s 2023 “Why America Gives” report, first-time donors who give online are 60% more likely to become repeat donors than those who first engage with you at an event.

Let that sink in. You’re investing huge amounts of time and money in tactics that are statistically less effective at building donor relationships than a mission-focused email with a “donate now” button.

Remember 2020? You Had to Go Digital. It Worked.

The pandemic forced everyone to cancel events—and guess what? The sector didn’t collapse. In fact, many nonprofits saw major increases in digital fundraising.

Nonprofit Tech for Good reports that online giving rose 23% in 2021, and the most successful organizations leaned into email, social media, and storytelling-based campaigns. And unlike a one-night event, digital engagement builds lasting habits.

So why, in 2025, are we still clinging to the donor dinner like it’s the only trick in the book?

Your Board Is Not Your Audience

Yes, we know: your board loves the gala. They love dressing up, the speeches, the wine. That’s fine—for them.

But building your entire development strategy around your board’s social calendar is like designing your website for Internet Explorer. Just because they like it doesn’t mean it’s where the rest of your donors are.

Let your board host private cultivation dinners or make phone calls. That’s valuable. But don’t let their preferences hijack your fundraising strategy.

What Actually Works

If your goal is long-term revenue, predictable growth, and funder-ready infrastructure, here’s what we see working for the best organizations:

  • Monthly giving programs: Reliable income, lower attrition, better forecasting.

  • Digital-first campaigns: Storytelling, video, peer-to-peer—backed by data.

  • Smarter grant applications: Targeted, high-quality, AI-assisted (👋 hey, that’s us).

  • Email and SMS fundraising: Low cost, highly effective, and scalable.

  • Real donor stewardship: Personalized, human, and not just a yearly invite.

TL;DR

In-person events are fun, sometimes. But most of the time, they’re a black hole of time, money, and energy—for your staff and your donors. If your idea of donor engagement is still built around RSVPs and raffle baskets, you’re leaving money—and mission impact—on the table.

Kill the gala. Save your team. Save your donors. Invest in what works.

We can’t stop your board from booking the ballroom. But we can help you write grant applications that actually get funded. Let’s talk.

Sheena Link is a seasoned development professional who has spent over a decade in the nonprofit trenches—planning galas, wooing corporations, and chasing grant deadlines. She can be reached at sheena@puregrant.com

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