Why Nonprofit Galas Only Work for a Shrinking Minority — and What to Do Instead

The gala has long been a fixture of nonprofit fundraising — but for most organizations, it has become a ritual more than a strategy. By the time venue insurance, contracts, entertainment, and table sponsors are locked in, it's not uncommon for teams to log hundreds of hours per event. And the return is often underwhelming and much lower than individual fundraising, with event expenses running about $0.50 per dollar raised, according to James M. Greenfield, author or “Fund Raising: Evaluating and Managing the Fund Development Process.”

For organizations with strong, meaningful relationships with wealthy donors, there's still serious money to be raised in the room at nonprofit galas. But the organizations that can pull it off are fewer than many development teams realize.

The Changing Reality of Philanthropy

Donor sensibilities are shifting. Leaders across the sector are asking harder questions about who funds their organizations and why. Meanwhile younger generations are largely disengaged from the gala format altogether. They're far more interested in meaningful impact than in a dinner and a silent auction.

The gala is structurally broken because it’s based on a concentration of major donors and access. And as the number of donors drops, long-term sustainability depends on a broader base of support. Digitally native donors give in smaller but more frequent amounts, and many prefer monthly giving over a large contribution. They’re looking for a link and the 30 seconds it takes to give on their phone. 

What Actually Works Now

Forward-thinking nonprofits are moving away from $500-a-plate dinners and toward frictionless, mobile-friendly giving. I'm not arguing against galas — fundraising teams simply have to meet donors where they are. In other words, some donors will appreciate a more intimate dinner event, but others will prefer spending a few minutes clicking a link. Therefore, smaller nonprofit fundraising teams need to think beyond the resource-intensive galas and dinners to other opportunities where they can compete.

Mobile-first giving. Nearly 5.7 billion people on a planet of nearly 8.3 billion have a smartphone. Text-to-give, QR codes, and link-sharing need to be part of the fundraising strategy for every organization. 

Recurring giving. Younger donors prefer to give monthly — and the data backs this up: Recurring donor bases grew 31% from 2023 to 2025, even as overall supporter bases shrank. A $ 25-a-month donor is a significant long-term contributor to a nonprofit's sustainability. 

Donor-centric storytelling. The total number of donors is declining, but they're not giving less. They're simply supporting fewer organizations. The winning organizations aren't the ones with a polished gala or dinner event, but the ones where donors are featured, engaged, and positioned front and center. 

The Real Question for Nonprofit Leaders

For some organizations, the gala still makes sense. Those nonprofits have strong major donor pipelines, and the event is a genuine cultivation tool to give donors what they want and keep them engaged. But, most nonprofits are smaller organizations that, if they have a handful of major donors, consider themselves fortunate. 

The nonprofits that will grow aren't necessarily those with the most spectacular or resource-intensive galas. They're the ones with a broad, mission-driven donor community — supporters who gave because they believed in the mission, not because they attended an expensive event. Those donors may well prefer to give in less than a minute from their phone, too.

Nonprofits need to understand who they are and, more importantly, who their donors are. If you've seen a drop in donors or dollars at your organization, review your data by pulling the demographics of your current donor base and compare them to your event attendee list. You may find you're running events out of habit — not because that's where your donors are.

The preceding content was provided by a contributor unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.