Fundraising Terminology: Direct Sale Fundraiser vs. Pre-Sale Fundraiser
Too often in the fundraising industry, many companies just assume that their customers understand the terminology associated with running a fundraiser. We understand that many of our customers are fundraising newcomers and are learning as they go. One of the main goals of our blog is to help educate people on understanding fundraisers, so we’ll be explaining the fundraising lingo from time to time.
A frequent question we get is: What is the difference between a “direct sale fundraiser” and a “pre-sale fundraiser?” Below is how we define both terms. School-Fundraisers.com specializes in pre-sale fundraisers, but we do offer some direct sale fundraisers as well.
A pre-sale fundraiser is when the selling is done off of a brochure. Brochures are provided for each fundraising participant. The selling is usually done for a 2 to 3 week period. Your customers will place their orders with your group. Once the selling period is complete, your group will place the order with the fundraising company. The product is typically delivered with in 2 to 3 weeks. Some examples of pre-sales are cookie dough, coffee, flower bulbs, cookbooks, gourmet nuts, and candles. We find that our customers prefer pre-sales because there is no financial risk involved. The fundraising materials are provided free of charge.
Benefits of a pre-sale fundraiser:
- No Financial Risks
- Greater Product Selection
- Greater Profits
A direct sale fundraiser is when groups have a product in hand that is then sold to their customers for a profit. The groups are taking on inventory of a product. Common direct sale fundraisers are candy bars, discount cards, and customized products (clothing, hats, keys chains, etc.). Below is a list of a few benefits and risks involved with direct selling. The risks involved with direct sale fundraisers are greater than with pre sale fundraisers because the products are purchased upfront, and your group is responsible for the handling of the product.
Benefits of a direct sale fundraiser:
- Low retail price
- Immediate product delivery
- Customers see exactly what they are going to get.
Risks of a direct sale fundraiser:
- Theft / Lost of Product
- Inventory Management / Storage Issues
- Stuck with excess inventory
