About The Sportsgrants Foundation
The Sportsgrants Foundation was founded in 2006 and is registered with the IRS as a 501c3 nonprofit. Sportsgrants pioneered the Non-Event concept, essentially gathering together communities to fundraise around one activity that all the fundraisers participate in wherever they are, thus eliminating most of the traditional event expenses and getting more funds to the causes that need them.
Sportsgrants is also unique in that we are totally self funded. We operate at no expense to the causes we work for. We keep a small percentage (typically 10% or less) of funds raised to cover overhead and Non Event expenses).
One of our success stories was working with with CrossFit® to create a one day Non-Event out of the Fight Gone Bad workout. By the sixth year we had raised more than $5 million dollars. Another unique aspect of the Sportsgrants Foundation is that it chooses a cause or causes as the beneficiary of the Non-Event before we begin. We have donated millions of dollars to causes ranging from The Special Operations Warrior Foundation to The Infant Swim Rescue.
The State Of Things
It is very important to understand the difference between the gross amount an event raises for a cause and the net amount raised and available for programs and services that actually help people.
Let’s pretend that a nonprofit organization with a $500,000 annual budget puts on a 5k running race. The direct cost of putting on the race is $20,000. Add to that the indirect expense of executive and staff time it takes to manage and market the event, and the expected 20% to 50% loss on the typical first time event as it attracts typically its lowest attendance it the first edition.
Entry fees are $25 and the race draws 1,000 participants. Total gross if one only look at direct expenses is $25,000 less direct expenses of $20,000. Leaving $5,000 to the charity so one would think, but when one factors in the indirect expense, it is an entirely different outcome. The event has actually had an income of $25,000 less a minimum of of $25,000 in indirect expense leaving net revenue at a minimum of -$20,000.
Under the Sportsgrants model we underwrite the direct expenses at no cost to the cause. We reduce direct expenses by creating Non-Events that have no expensive physical components, and we significantly reduce indirect expenses by eliminating mass marketing expenses because we know where our participation base is and how to reach them through email and social media.
We believe ours is the event fundraising model of the future and after having raised more than $8 million without ever having a staff that exceeded three people, we can offer the proof of our concept.
If you have, or know a cause that you believe in that needs a fundraising partner, please contact us. We are in the business of helping people.