Malcolm Rivera
Political campaigns are an essential part of the democratic process, allowing candidates to promote their platforms and engage with voters. Running for office, however, can be expensive, and this is where political fundraising comes in. Political campaigns can use various strategies to raise funds, including direct mail campaigns, fundraising events, door-to-door solicitations, and meet-and-greets with political figures. One creative way to raise funds is through restaurant fundraisers, where a restaurant and an organization team up for a specific period, often a night but sometimes extending to days or a week, with the profits being split between the two parties. This can be an effective and low-maintenance way to raise funds and build relationships with donors, with restaurants gaining customers and promotion from the event.
| Characteristics | Values |
|---|---|
| Restaurant Fundraisers | Can be a low-maintenance way to raise funds |
| Can be a good way to draw attention to your nonprofit | |
| Can be a good way to build relationships with donors and volunteers | |
| Restaurants may be keen to partner with you to gain customers and secure promotion | |
| National chains and smaller, local restaurants may be interested in partnering with you | |
| Funds are usually raised over a specific period, such as a night, a few days, or a week | |
| Restaurants will usually agree to split the proceeds, with a common split being 10-20% | |
| Door-to-door Fundraising | Can be a good idea for smaller towns and tight-knit communities |
| Face-to-face fundraising can be effective, despite the rise of social distancing | |
| Change Drive | A passive and low-maintenance way to earn extra funding |
| Collection buckets can be placed around town with signs explaining the cause | |
| Local businesses and restaurants may allow you to keep a collection jar by their register | |
| Optimized Online Donation Page | An easy way for supporters to become donors |
| Mobile-friendly donation pages are important to avoid excluding potential donors |
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What You'll Learn
FEC regulations and federal election laws
Federal election law requires political campaigns to record and disclose the source and amount of contributions they receive. It also imposes strict limits on the amounts that individuals may contribute to a campaign. For instance, in the 2019 election cycle, an individual donor could contribute no more than $2,700 to a candidate's committee per election. As such, candidates raise a substantial portion of their funds through fundraising events. Typically, when a candidate's committee hosts a fundraiser, the committee treats the full price of each ticket as a contribution from the purchaser. Federal law defines a contribution as:
> any gift, subscription, loan, advance, or deposit of money or anything of value made by any person for the purpose of influencing any election for Federal office. "Anything of value" includes an in-kind contribution, as well as "the entire amount paid to attend a fundraiser or other political event."
FEC regulations require advance payments for the services of corporate or labour personnel directed to carry out candidate fundraising activities as part of their job. This includes the use of the organization's list of clients, customers, vendors, or other persons outside the restricted class for soliciting contributions or distributing invitations. It also includes the use of catering or other food services arranged for or provided by the corporation or labour organization. If a corporation is providing services in the ordinary course of its business as a commercial vendor, payment does not have to be made in advance, provided that the payment is at the usual and normal charge and the payment schedule is followed.
A corporation or labour organization may not use its name, trademarks, or service marks to facilitate contributions to a federal political committee, and a federal political committee may not knowingly accept or receive such facilitated contributions. For example, impermissible corporate facilitation would occur if a campaign recognized the corporate or labour employers of individual contributors in connection with a fundraising event. These restrictions do not apply to the use of a name as part of the name of a political committee.
A corporation or labour organization may not sponsor a fundraising event for a campaign or political committee if individuals beyond the restricted class will be present, nor may corporate or labour organization staff collect funds for a candidate or political committee. However, a corporation or labour organization may make its facilities and resources available to its SSF for the SSF to sponsor fundraising events, subject to the advance payment rules. Because the organization's SSF may make communications to the general public using the funds it has raised, it may sponsor fundraising events for candidates and invite outside individuals and political committees. All related costs paid for by the SSF, including staff time, mailing, room rental, and catering charges, count as in-kind contributions to the candidate.
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Restaurant fundraiser structures
Political campaigns can certainly do restaurant fundraisers, and they are a great way to engage with the community and raise funds. Here are some key structures to consider when planning a restaurant fundraiser:
Selecting a Restaurant Partner
Choosing the right restaurant is crucial to the success of your fundraiser. Consider the restaurant's location and its proximity to your target audience to ensure maximum attendance. Assess the restaurant's values and whether they align with your organization's values and target audience. The restaurant's willingness to promote the event is also an important factor, as a proactive partner can help spread the word more effectively.
Planning and Timing
Plan ahead and choose a date and time when most of your supporters are available. Wednesdays and Thursdays are typically the most effective days to host a restaurant fundraiser. It is recommended to schedule at least 30 days in advance to allow for sufficient promotion and planning.
Profit-Sharing and Donation Structure
Discuss profit-sharing terms upfront with the restaurant. Negotiate fair terms that ensure both parties benefit, and be clear about the percentage of sales the restaurant will donate back to your cause. This percentage can vary, and it is important to understand the restaurant's specific policies and practices.
Promotion and Engagement
Utilize social media platforms like Facebook, Instagram, and Twitter to promote your event. Share regular updates, visuals, and create attention-grabbing flyers and posters that align with your branding. Engage with local groups and community pages to increase visibility. It is also essential to build a good relationship with the restaurant staff, as they can help spread the word to their existing clientele.
Logistics and Details
Work with the restaurant to align on event logistics, including timing, resource needs, and any specific requirements for the event. Discuss the expected number of attendees and meal details to estimate the total donation amount. Ensure that the restaurant can accommodate your group and provide efficient service during the event.
Building Relationships
Restaurant fundraisers are an excellent opportunity to build relationships with donors, volunteers, and the community. Foster a culture of transparency by providing updates on how donations are utilized and sharing success stories. Engage directly with attendees and create tailored plans to recognize and celebrate individual contributions, ensuring long-term commitment and support.
By following these structures and adapting them to your specific needs, you can effectively organize and execute a successful restaurant fundraiser for your political campaign.
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Benefits for restaurants
Political campaigns can be an excellent opportunity for restaurants to gain several benefits. Firstly, they can be a great way to attract new customers and promote the restaurant. By partnering with a political campaign, restaurants can gain exposure to new audiences and build relationships with potential customers. This is especially beneficial for smaller, locally-run restaurants that may not have the same marketing reach as national chains.
Another advantage for restaurants is the potential for increased revenue. During a political campaign fundraiser, restaurants can expect a higher volume of diners, which can result in higher sales and profits. The restaurant typically agrees to split the proceeds raised during the event, with the exact amount varying depending on negotiations. Some restaurants may offer a lower split for a single night, while others may agree to a higher percentage for multiple nights.
Additionally, political campaign fundraisers can be a relatively low-maintenance way for restaurants to get involved in their community and support a good cause. Restaurants can choose to partner with organizations whose missions align with their values, enhancing their reputation and building goodwill with customers. The fundraisers are usually held on specific nights or extended to a few days or a week, making it a short-term commitment for the restaurant.
Furthermore, political campaign fundraisers can help restaurants build relationships with other businesses and organizations. By partnering with political campaigns, restaurants can network with influential people and organizations, which could lead to future collaborations or business opportunities. Overall, political campaign fundraisers offer restaurants a unique opportunity to increase their customer base, revenue, and community engagement while also supporting a worthy cause.
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Finding a restaurant partner
Political campaigns can do restaurant fundraisers, but there are a few things to keep in mind when choosing a restaurant partner. First and foremost, it is essential to ensure that the restaurant is aligned with the values and goals of the campaign. This includes vetting the restaurant to ensure there have not been any negative news stories or associations that could reflect poorly on the campaign. Additionally, the restaurant owner's political affiliations should be considered, as partnering with a restaurant that actively supports opposing candidates or parties could create controversy.
Another key consideration is the restaurant's connection to the local community. Selecting a restaurant that is well-known and respected in the area can help to signal to the community that the campaign understands and cares about their interests. This is especially important when trying to gain support in an area where the campaign may be weaker.
It is also beneficial to choose a restaurant that can provide a good backdrop for photo ops and other media opportunities. This could include ensuring the restaurant has a suitable space to accommodate the campaign event and any associated press coverage.
When approaching potential restaurant partners, it is essential to be clear about the details of the event, including the date, time, and who will be in attendance. It is also important to note that some restaurants may be hesitant to host political events, especially if they do not want to be seen as choosing sides or inviting controversy. In these cases, it may be necessary to emphasise the benefits of hosting a political fundraiser, such as the potential for positive publicity and increased foot traffic.
Overall, finding a restaurant partner for a political campaign requires careful consideration of the restaurant's reputation, community standing, and political affiliations to ensure a successful and well-received event.
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Negotiating a good deal
Political campaigns can do restaurant fundraisers, and these can be an effective way to raise funds. When planning a restaurant fundraiser, it is important to negotiate a good deal to ensure the event is successful and profitable. Here are some tips to negotiate a favourable agreement:
Understand the Rules and Regulations
Before negotiating any deal, it is crucial to understand the legal framework surrounding political campaign fundraising. Federal election laws have strict limits on individual contributions to a campaign. The FEC (Federal Election Commission) has specific rules regarding food and drink at fundraisers, which should be carefully considered. For example, if the ticket price includes food and drink, the entire amount paid is considered a contribution. However, if attendees have the option to purchase their own food and drink, these payments are not considered contributions. Understanding these rules will help you structure your fundraiser and negotiate effectively.
Choose the Right Restaurant Partner
Selecting the right restaurant is key to negotiating a good deal. National chains often have established fundraising programs and are happy to partner with organisations. They may have specific application processes and forms to fill out. Smaller, local restaurants can also be great partners as they may be keen to gain new customers and promote their business. Consider the benefits your campaign can bring to the restaurant, such as future business and increased visibility.
Know Your Fundraising Goals
Before approaching a restaurant, be clear about your fundraising goals and what you want to achieve from the partnership. Determine the date, time, and expected number of attendees. This information will be essential when negotiating the terms of the deal. Ask your donors about their preferences for the event, including their preferred day and time slot, to maximise attendance.
Be Open to Negotiation
Restaurants typically offer a percentage of the proceeds from your supporters' spending, usually ranging from 10% to 20%. However, be open to negotiating a better deal. Some restaurants may offer a percentage of total sales over a specific period or include other factors such as the number of diners. Know what you want to ask for and be prepared to discuss the terms with the restaurant manager. Emphasise the benefits to the restaurant, such as increased foot traffic and positive publicity.
Build a Rapport
Developing a good relationship with the restaurant manager is crucial. Having a designated point of contact will make communication smoother. Ask about their standard procedures and what they require to seal the deal. Be transparent and discuss the terms of the agreement, ensuring that both parties understand and agree to the conditions.
Promote the Event
Once the deal is finalised, promote the event widely to ensure its success. Use social media platforms like Facebook to create events and spread the word. Ask supporters to share the event with their networks. Consider using flyers and other promotional tools to reach a broader audience. A well-promoted event will attract more attendees and result in more funds raised.
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Frequently asked questions
A restaurant fundraiser involves a group of diners eating at a specific venue on a particular day, with the profits being split between the organization and the restaurant.
National chains will often be happy to partner with you, but smaller, locally-run restaurants shouldn't be discounted. Since they're not as well-known, partnering with nonprofits for fundraisers can bring them new customers. You can contact them directly, or check national chains' websites for details.
Restaurants can gain customers and secure promotion from the fundraiser.
First, ask your donors when they would prefer to attend, for example, a weekday lunch slot or a weekend evening. Then, contact your chosen restaurant and agree on a date and time. You can also negotiate the split of proceeds, which is usually 10-20% but can be up to 50%. Finally, ask your supporters to confirm their attendance so the restaurant can cater effectively.
