In our modern, high-tech high-speed world, what more natural thing than we "outsource" fundraising to companies specifically devoted to that endeavor? But, just because a firm says they are out to help a group raise money does not mean the organization should just accept them at face value. Like any other field of human activity, there are good companies and bad ones. People need to look at a fundraising company as if they were a new employee or a business partner, and chose carefully.
There are a number of factors to consider when selecting a firm. The Association of Fund-Raising Distributors and Suppliers (AFRDS) is an excellent source of information. Their website even has a checklist containing questions a charitable group should ask a prospective company. Looking at just a general overview, here are some factors to consider:
Is the company providing a truly professional program, do they stand behind their products/services? If this is to be some sort of school fundraiser, how does the company handle door-to-door sales? These days, many parents are uncomfortable with the idea of their minor child(ren) knocking on strangers’ doors, unless an adult is along. What about promotions? Does the firm handle that, or the group? If the company, are the fliers, posters etc. of good quality?
A very important issue is the expected profits. If the company is providing some product (e.g. nuts, candy bars, candles), what is the price the group must pay, and what are the items to be sold for? Not many people are willing to fork over five bucks for a candy bar they can get for a dollar at the grocery store, even if it is for charity. Do the items have to be paid for upfront? Will the company help with keeping records and dealing with the state sale’s taxes, if any? On the other hand, the funds could be a percent of the total sales. Now, seventy percent may sound great, but the group needs to ask what (realistically) they can expect to make, in real dollars.
What about damaged and/or returned products? Does the company deal with problems in a timely and orderly fashion? And, of course, there’s the matter of references: will the firm provide any? Checking with other groups that have used a fundraising company in the past is an excellent means of determining just how reputable they are. The single best question to ask a reference: would you use this firm again? The answer to that inquiry speaks volumes about the quality of the company.