Fund-Drainer

AAA

DEFINITION of 'Fund-Drainer'

An unsuccessful fundraising event which actually loses money for the sponsoring organization. Since fundraising events often entail considerable work, a fund-drainer can be extremely demoralizing for the organizers. Fundraising events should be carefully planned and managed in or to ensure they raise sufficient funds to be worthwhile endeavors.

INVESTOPEDIA EXPLAINS 'Fund-Drainer'

A fundraiser should be treated with the same seriousness as any business venture. Often not all of the assets required for larger fundraising events can be acquired for free. For example, securing the venue and equipment, and providing catering may all be substantial expenses paid by the fundraising organization. If in the end, the event does not garner sufficient donations then the fundraiser may lose significant funds for the organization.

RELATED TERMS
  1. Not For Profit

    A not for profit organization is a type of organization that ...
  2. Write-Off

    A reduction in the value of an asset or earnings by the amount ...
  3. Nonprofit Organization

    A business entity that is granted tax-exempt status by the Internal ...
  4. Charitable Donation

    A gift made by an individual or an organization to a nonprofit ...
  5. 501(c)

    A subsection under the United States Internal Revenue Code. The ...
  6. Qualified Charitable Organization

    A nonprofit organization that qualifies for tax-exempt status ...
Related Articles
  1. The Christmas Saints Of Wall Street
    Investing Basics

    The Christmas Saints Of Wall Street

  2. Social Finance Careers: Creating A Better ...
    Entrepreneurship

    Social Finance Careers: Creating A Better ...

  3. Deducting Your Donations
    Taxes

    Deducting Your Donations

  4. Non-Cash Contribution Rules Could Cut ...
    Retirement

    Non-Cash Contribution Rules Could Cut ...

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center