What Is a Gift Card Fundraiser?

Nicole Madison
Nicole Madison

A gift card fundraiser is a program that is used to raise money for an organization. With this type of program, however, the people who want to support the organization don’t donate cash or buy specific products or services to show their support, they purchase gift cards. This type of money-raising program offers some benefits that other types do not. For example, gift cards are small and do not require sellers to lug around heavy merchandise or deal with food items that might perish under the wrong conditions. Additionally, most people have a use for gift cards, whether they use them to purchase merchandise or give them as gifts.

Gift cards are sold as a way for an organization to raise funds.
Gift cards are sold as a way for an organization to raise funds.

Many organizations use fundraiser programs to raise the money that they need. For example, a soccer organization might implement a fundraiser to afford uniforms for participants, referee fees and equipment costs. A school might organize a fundraiser to raise money to buy playground equipment or to fund a trip for a group of students. Likewise, a charity organization might use fundraisers to raise money to feed homeless people. Often, these sorts of programs are intended to solicit cash or to sell fundraiser merchandise.

Local coffee houses often donate gift cards to area fundraisers.
Local coffee houses often donate gift cards to area fundraisers.

When an organization chooses to sell merchandise to raise funds, it usually gets to keep a portion of the sale price of each item. The same goes for a gift card fundraiser. For example, a fundraiser participant might sell a gift card for $20 US dollars (USD). Out of this $20 USD price, the organization might be able to keep $5 USD toward its cause. The person who bought the gift card, however, gets the entire $20 USD gift card to spend as he or she sees fit or to give as a gift to someone else.

Sometimes, gift card fundraiser organizers make their offers more attractive to potential buyers by selling gift cards for less than they are worth. For example, a fundraiser might sell $25 USD gift cards for $15 USD or $20 USD each. In this case, the organization that is in need of funds still gets to keep a portion of the money toward its cause, but the customer gets more value for his or her money. This should translate into more sales.

Gift card fundraiser events might also prove beneficial because they do not require an organization to stock cumbersome products or refrigerate perishable food items. Sellers don’t have to make deliveries of heavy products or worry about buyers who do not like the merchandise when they receive it. Additionally, some people might not want to buy a specific product such as a box of candy, a frozen pizza or a stuffed toy, but most people are likely to have at least a couple of ways to use a gift card.

Schools often use a gift card fundraiser to raise money for new playground equipment or other items.
Schools often use a gift card fundraiser to raise money for new playground equipment or other items.
Nicole Madison
Nicole Madison

Nicole’s thirst for knowledge inspired her to become a wiseGEEK writer, and she focuses primarily on topics such as homeschooling, parenting, health, science, and business. When not writing or spending time with her four children, Nicole enjoys reading, camping, and going to the beach.

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