Selling gift cards for businesses such as restaurants, department stores and grocery stores has become a very popular form of fundraising for organizations in recent years.
Advantages of a Gift Card Fundraiser
There are a number of advantages to an organization in using this form of fundraising. The gift cards are easy to sell, because they can be used like cash for the purchasers.
Instead of buying candy or cookies or other fundraising items that customers may not want, they can use the gift cards at the places of business to purchase the goods and services they actually want. They are especially effective when the gift cards are for some of the most popular places in town.
How to Run a Gift Card Fundraiser
This is also a very simple and straightforward form of fundraising. Here is how it works: your organization purchases a certain number of gift cards from the business at a discount, usually 3% to 5%, and then sell them at face value. For example, a $50.00 gift card for a chain restaurant might cost your organization $35.00; you sell it at full value and receive a $15.00 profit for your group. This is called a scrip program, and there are many businesses online that deal in such cards.
Take some time to check into the company you select. Some companies offer a higher percentage of the sales than others. Usually the percentage is based on the number of cards to be sold. Some companies require a minimum number of cards to be sold, while others do not. But with careful research a good dealer can be found who will enable your organization to maximize your profits.