Maximize Your Impact: Donate Commission Instead for Fundraisers

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Discussion Overview

This thread explores various approaches to conducting fundraisers within the context of Pampered Chef, particularly focusing on the idea of donating commissions instead of using the official fundraising system. Participants share their personal experiences and thoughts on the effectiveness and implications of these methods.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Exploratory

Main Points Raised

  • One participant mentions the idea of treating a fundraiser like a regular show and donating a portion of their commission to the cause, suggesting it may provide more benefits to the organization.
  • Another participant shares their experience of donating their commission and raffling off products, expressing frustration with the limitations of the official fundraising system.
  • Several users discuss the financial implications of fundraisers, noting that consultants may end up earning less commission compared to regular shows.
  • One participant recounts a successful fundraiser where they donated most of their commission, highlighting the positive outcome for the charity involved.
  • Another participant raises concerns about the fairness of the commission structure in fundraisers, suggesting that consultants bear the financial burden.
  • Some participants discuss the tax implications of donating commissions and whether these can be claimed as expenses.
  • One participant describes a unique method used by their upline for fundraisers, which involves entering orders as a cooking show to maximize host benefits.
  • Another participant inquires about the logistics of providing funds to organizations and how to handle host benefits.

Areas of Agreement / Disagreement

Views differ on the effectiveness and fairness of the current fundraising system, with some participants expressing dissatisfaction and others sharing successful personal experiences. No clear consensus emerges regarding the best approach to fundraisers.

Contextual Notes

Participants share their personal experiences and opinions regarding fundraising practices, emphasizing the financial aspects and potential benefits to charities. Discussions include various methods and the implications of commission structures.

Who May Find This Useful

Consultants interested in alternative fundraising strategies or those seeking to understand the financial dynamics of fundraising within the Pampered Chef framework may find this discussion relevant.

smilesarepriceless
smilesarepriceless
Gold Member
Messages
547
has anyone ever done a fundraiser for a cause, but rather than actually submitting as a fundraiser, simply doing it like a show, and just giving a portion, or all of your comission to the cause...

Esp. if you deem it to be a worthy cause, it seems that they benefit more by getting the host benefits...AND the money for the cause from the commission..

I wish our fundraising system was a bit more generous to make it more appealing..
 
that's how I was always advised to do it. So, that's how I do it :) I suppose you could enter it as fundraiser & add a percentage of your commission to "top it up". Just seems easier to do the other way, though.
 
I definitely do it that way. I've done it where I donate my commission and then the products are raffled off. I think it's CRAZY that doing it this way is so much better!

After all, consider a consultant that makes 27% that month and does a fundraiser. They make 10% LESS b/c commission is then 17%. The organization gets 15% at the most. SO...if it's not super successful and the organization get 10% back, WE end up paying for it anyway (27%-17%=10%!). :grumpy: If they get to 5%, then does that mean that ALL the typical hosts products cost?? Bare minimum, a "regular" host receives $115 at $600 in sales, so I guess that costs PC under $6.:eek:

I think that we have SUCH potential in the world of fundraising. It's sad that we have to find a way AROUND our fundraiser!

A $1000 fundraiser makes $150. At 17%, we make $170. Total $320.
A $1000 show earns $215 in products. At even 25%, we make $250. Total $465.

I'm surprised they don't encourage MORE fundraisers! PC actually makes out pretty well! I love the company, I do. I just think it's very lacking in this area.

Okay...:blushing:sorry...:blushing:...I'm done!
 
In March, I donated most of my commission from that show over there:<---------------Neither of us had any idea that it would be so big!The host donated the free product to gift baskets that were raffled off to benefit her Relay for Life team. Her team got the coveted "gold" level for the first time ever.I DID deduct enough to cover my expenses ... mileage and postage ... and kept the extra 3 percent because I figured that was my reward for having a good month in sales. If I do a show for them again, I think I will donate HALF my commission.
 
Jules711 said:
A $1000 fundraiser makes $150. At 17%, we make $170. Total $320.
A $1000 show earns $215 in products. At even 25%, we make $250. Total $465.

I'm surprised they don't encourage MORE fundraisers! PC actually makes out pretty well! I love the company, I do. I just think it's very lacking in this area.
Click to expand...
The cost to HO for the host products isn't $215. It's probably 35-40% of that, which works out to $74-86. Add that to the $250 commission, and it's pretty darn close to the total for your FR example.
 
chefann said:
The cost to HO for the host products isn't $215. It's probably 35-40% of that, which works out to $74-86. Add that to the $250 commission, and it's pretty darn close to the total for your FR example.
Click to expand...

I understand that...of course, the products don't cost the retail. But that just confirms that WE pay for the fundraiser, not PC. I don't really think that's fair. If it's going to be 10-15%, we should earn our regular commission, right? It's more work and I get paid less. If it were 30-40% earned for the fundraiser, and I got 17%, that wouldn't be so bad.
 
I do most of my fundraisers this way. Just remember if it isn't a recognized charity, you'll still pay taxes on those earnings.
 
Leggy- I am assuming you can atleast claim that on your taxes? So I am donating 10% of my pay and put it as a donation or expense? I know your not a tax prof. But I have not doe it this way before.
 
legacypc46 said:
I do most of my fundraisers this way. Just remember if it isn't a recognized charity, you'll still pay taxes on those earnings.
Click to expand...

So who gets the host benefits?
 
One of my upline does FRs in a weird way (which I don't do, nor do I advocate, but I put it here for information). She collects orders and enters them as a cooking show. Then takes one order that has more on it than the earned host benefits and includes the item from the month's host bonus. That order goes in as the host order, and the extra funds (since that customer paid retail for their items) are the donation to the group. If it's a really large FR, then 2 or more orders go in as the host until the host benefits are used up.
 
So if you are just entering them as shows do you just give them cash ofr their fundraising portion or a personal check or what?

Am I too confused here and thinking this through too far?
 
A personal check written to their organization so then you can write it off as a donation.
 
DebbieJ said:
So who gets the host benefits?
Click to expand...

Missed this question earlier. You can do whatever you want with the host benefits. They can be raffled off; you can use them to reinvest back into your business; if a director, you can use them as future incentives for your team. Whatever you choose and/or whatever you coordinate with the group you're supporting.
 

Frequently Asked Questions

What does it mean to donate commission instead of selling products for fundraisers?

Donating commission means that instead of keeping the earnings from sales made during a fundraiser, a consultant chooses to give a portion or all of their commission to the designated cause or organization. This approach allows the fundraiser to benefit directly from the sales while also promoting community support and engagement.

How can I set up a fundraiser using the donate commission model?

To set up a fundraiser, you can start by selecting a cause or organization that you want to support. Next, communicate with the organization to ensure they are on board. Then, promote the fundraiser through social media, email, and other channels, highlighting that a percentage of the commission from sales will be donated. Finally, host a virtual or in-person party to showcase the products and encourage sales.

What types of organizations can benefit from a fundraiser using this model?

Many types of organizations can benefit from this model, including schools, non-profits, sports teams, and community groups. Essentially, any group looking to raise funds for a specific cause or project can participate, making it a versatile option for various fundraising needs.

How much commission can I donate during a fundraiser?

The amount of commission you can donate varies based on your sales and personal preference. Typically, consultants can choose to donate a percentage of their total commission, which can range from 10% to 100%. It’s important to communicate this clearly to participants so they understand how their purchases will contribute to the cause.

Are there any tax implications for donating commission from sales?

Yes, there may be tax implications when you donate your commission. Generally, you can deduct the amount you donate from your taxable income, but it’s advisable to keep accurate records and consult with a tax professional to understand how these donations will affect your taxes. This ensures compliance with tax regulations and maximizes your benefits.

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