A gala charity event is a sophisticated, upscale party hosted by a nonprofit. At a gala, guests dress up in formal clothes, enjoy what is supposed to be very good food, socialize and are entertained in some way. Gala guests pay a lot of money to attend and then are further solicited for donations or to bid on auction items, many of them high-end, with the money raised going to the nonprofit.

Most galas are considered successful if they break even financially – galas that raise large amounts of money after expenses are paid are quite rare. So why have galas if they don’t bring in much money? Because most board members and other supporters may want to socialize with each other and celebrate – they’ve sat through many meetings, they’ve shouldered a great deal of leadership responsibility, they’ve discussed and debated all year long, and now they want to have an enjoyable time. It’s a time to renew, reflect, and reward themselves for work well done. And it can also be an important social event in a community: this may be a chance for aspiring and current politicians to network and an opportunity for business owners to show they are interested in community affairs.

Gala events have been a mainstay of nonprofits for many generations. But galas have also always faced criticism from people who see them as inappropriate, especially for nonprofits focused on issues regarding poverty and inequity. And such criticism seems to be growing among younger people. As one article put it:

Why juxtapose calls to feed the hungry, house the homeless and cure cancer with champagne toasts and caviar hors d’oeuvres? As researchers who study charities, we understand why opulent bashes that raise money for good causes seem puzzling. These inherently contradictory events intended to help people in need double as vehicles for the rich and famous to show off their largesse.

Those feelings among at least some community members can make marketing a gala difficult – something I have been facing as I promote the annual gala for a small nonprofit focused on affordable housing and housing equity. I want to make sure I reach people beyond the board who might attend, but I also don’t want to do anything that reminds this nonprofit’s clients or thrift store patrons that we’re holding an “opulent bash” they probably can’t afford to attend.

Market a gala the wrong way and you could end up with not just a poorly attended event that costs money instead of earning it, but also a public relations problem.

The gala will happen, the board members and others attending will have a fun time and, hopefully, feel re-energized about their volunteering with the organization. We might even manage to introduce some new people to the organization. And we certainly hope to at least break even financially.

While galas may eventually be abandoned, for now, they still have an important role at many organizations, including the one I’m supporting. That’s undeniable.

That said, here are two comments about galas worth considering.

A gala is not major gift fundraising, nor does it really have anything to do with philanthropy… in rare cases, it provides enough net revenue to justify having one. A gala is almost 100% transactional in nature. In other words, it’s not about connecting a donor’s specific passions and interests with the need you’re addressing. To be honest, it’s creating an avenue for you to invite donors and their friends to, for one night, feel good about what you do.
That’s not Philanthropy.
Can it be useful for cultivating major donors? Yes, in some cases. Can it inspire some folks to become donors? Yes, in some cases. Is it possible to make more net revenue by doing a gala than by cultivating major donors? No.
From veritus group.com.

Use your galas as a chance to continue showcasing your work, but be mindful that they may not be the centerpiece of your fundraising strategy forever… Don’t let the changing landscape around events catch your organization off guard. Galas may not be going anywhere in the next few years, but they’re likely to lose importance as millennials take on a greater share of our donor bases. Now is the time to rethink your plan and get ready for those changing dynamics.
From Team Kat and Mouse.

Also see this article, Nonprofits turn to tech to court younger more diverse donors.

Are you also facing difficulties in promoting a gala? Do you face challenges in marketing at a nonprofit because of how certain activities could be, or are, negatively perceived?

And speaking of fundraising:

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