Fundraising House Parties: When They Work, Why They Flop, and Advice for Getting Them Right

Are house parties an example of smart strategy or a resource drain? We sat down with Richard Russell, founder of Russell Philanthropies, and Co-presidents Rebecca Bowen and Marcia Sells to get some unvarnished perspective (and, oh, did we!).

For the uninitiated, what is a house party in the context of philanthropy? (We, of course, know it’s not red Solo cups, loud music, and college kids. 😉)

Rebecca: In the not-for-profit world, a house party takes place at the home of a board member, donor, or volunteer to benefit an organization they love. The organization identifies and invites guests who feel like a fit and can be useful to their mission in some way—whether it’s donations, connections, influence, etc. There can be entertainment but it’s not required. Typically there are some short formal remarks, perhaps a soft pitch, and then quite a lot of more informal interaction and relationship-building.

Where do you land on the utility of such events? Worth it or hard pass? 

Richard: I don’t want to sound like a crank but in general? No. I don’t think house parties have the right ROI and I’ll tell you why. The people you really want as donors don’t come to these parties. You’re getting smaller-dollar donors and you’re also not doing the deeper, more difficult work of strategically pursuing major gifts. 

Marcia: Doing this really well requires a commitment to following up with the people who attend. You must plan this part while you’re planning the event itself. I was at a fundraiser recently, and I was not sure if the organizers knew everyone who was in the room. That’s a pretty significant mistake. How can you follow up in that instance? 

Rebecca: I often see nonprofits feel pressured to do these at the busiest times in the year. It’s an incredible burden on staff who are already often stretched thin. It also represents a substantial opportunity cost. What are you not doing so you can do this? 

Let’s say you sink resources into a house party but you don’t think through what your goal is and what success looks like. You don’t do the follow up. You’re giving up the time, effort and investment into other work that could actually be much more valuable to your organization. That’s the real cost of a house party.

Ok, so that’s a ‘no’ on the house parties, then. But is there any time a gathering like this can be a smart play?

Marcia: It can work for fundraising if it’s a way of coalescing the organization around a specific rallying cry or focus area. It can also work in terms of creating introductions that feel more organic and natural—assuming you’re inviting the right people and they’re showing up. They have to actually come to the party for it to be useful. And even guests who RSVP yes don’t always come.

Rebecca: When I was in-house and leading teams, we would use events to do donor discovery: who are they as people, what interests them, why might they be motivated to give at this point in time, what could prevent them from giving, etc. You have to architect an opportunity where it’s difficult for a donor to decline; there needs to be a real draw to get them in the door. But the intel you get can be very valuable in creating a good strategy for a capital campaign.

Richard: This will seem like I’m contradicting myself, but I agree there are those rare instances when a house party is a genuine way to connect with donors. For example, we work with a client that has two donor households, both with infirmities that preclude attendance at external events. In an instance like that, a small, intimate home gathering that feels appropriate, tasteful, and warm can be wise. But these examples are rare!

I have also seen supremely well done house parties expand a host’s love for the organization and lead them to make truly transformative gifts. To me, that’s a goal!

Let’s wrap up with advice—what are some best practices you’d offer for nonprofits that, despite all odds, feel excited and optimistic about a house party?

Richard: Prepare the logistics that will empower you to follow up after the event. Don’t rely on the host to do it for you on their own. Support them and take on the bulk of that post-event connection work yourself. This means thinking through how you’ll invite, track, and continue to communicate with attendees. 

Rebecca: Make sure your ‘why’ is crystal clear. Why are you doing this? Why should donors be interested? When you know what your goal is, you can design and tailor an event to deliver that result.

Marcia: I totally agree with customizing the event for attendees—and, along those lines, let’s give them a chance to appreciate why they should want to make a gift. Tell your story in an impactful way (and keep it short).

I’ll also add a cautionary note: you can’t forget the basics of event management. There is almost inevitably the “fill the room” problem when people cancel. Will you have staff on standby to add some volume? Do you plan a slightly smaller event and increase the guest list to adjust for some day-of dropoffs? Do these thought exercises ahead of time. 

That’s the perfect note to end on: thank you so much for the time!

Fundraising, donor development, and board activation are all key to making a measurable impact on those you serve and progressing forward with your mission. Reach out at hello@russellphilanthropies.com for more—we love to talk more personally about all the elements, both strategic and tactical, that will support your success.