Fund-Drainer

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.

BREAKING DOWN '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. Foot Traffic

    The presence and movement of people walking around in a particular ...
  3. Crisis Management

    The identification of threats to an organization and its stakeholders, ...
  4. Nonprofit Organization

    A business entity that is granted tax-exempt status by the Internal ...
  5. Backstop Purchaser

    An entity that agrees to purchase all the remaining, unsubscribed ...
  6. Series B Financing

    The second round of financing for a business by private equity ...
Related Articles
  1. Investing

    Alibaba Affiliate Raises $4.5B in Series B Capital (BABA)

    Ant Financial, announced Tuesday that it had closed a fundraising of $4.5 billion at a whopping valuation of $60 billion
  2. Insights

    Orlando GoFundMe Effort Raises $4 Million

    Crowdfunding charity site GoFundMe has raised a record high of more than $4 million to help the families of the Orlando Pulse shooting victims.
  3. Personal Finance

    What IRS Form 1023 Is Used For

    To be treated as a tax-exempt organization, start by filling out this form.
  4. ETFs & Mutual Funds

    Want To Work At a Hedge Fund? These Are The Top Entry-Level Jobs

    Lucrative salary, high perks, and best quantitative brains at work - Here are the common entry level positions for those aspiring for a career in hedge fund industry.
  5. Personal Finance

    5 Steps To Forming A Tax-Exempt Nonprofit Corporation

    Before you tackle this challenge, know the challenges of forming and operating an official nonprofit organization.
  6. Managing Wealth

    7 Signs Of A Charitable Disaster Scam

    Make sure you know where your donations are going, and where they can be most effective.
  7. Personal Finance

    What IRS Form 990 Tells About a Nonprofit

    Want a picture of an organization's activities? This annual form, open to the public, sums up everything from salaries paid to missions accomplished.
  8. Investing

    What Are The Costs And Benefits Of Organic Food?

    Organic food is becoming more commonplace in supermarkets, and there are several hidden costs and financial benefits associated with the certification.
  9. Markets

    Whole Foods 365: The Economics of Discount Organic

    Whole Foods Market is expanding its brand to create a chain of discount natural food stores called 365 by Whole Foods Market. With the high cost of producing, shipping and selling organic food, ...
  10. Managing Wealth

    The 5 Most Important Venture Capital Deals of 2015

    The year 2015 marks a pivotal point for the venture capital industry, as investors cast doubt on high-tech startup valuations. Let's take a closer look.
RELATED FAQS
  1. Are accepting investments legal for NGOs in the USA?

    We have wealthy individuals who wish to contribute investments themselves to our efforts. Is that advisable and legal? ... Read Answer >>
  2. Do nonprofit organizations have working capital?

    Discover why financial reserves in the nonprofit world are equivalent to working capital used by for-profit businesses, and ... Read Answer >>
  3. What is the best way to invest $85K for a 501(c)(3) non-profit?

    We recently received $85K from an estate and are attempting to find the best and safest investment for it. We are a small, ... Read Answer >>
  4. What is the financial services sector?

    Go beyond banks and credit unions to learn about the diverse group of companies that make up the fast-growing financial services ... Read Answer >>
  5. How do NGOs get funding?

    A non-governmental organization (NGO) is a non-profit, citizen-based group that functions independently of government. NGOs ... Read Answer >>
  6. Do nonprofit organizations pay taxes?

    Section 501 of the Internal Revenue Service (IRS) tax code exempts qualified nonprofit organizations from federal taxes. ... Read Answer >>
Hot Definitions
  1. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  2. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  3. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  4. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  5. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  6. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
Trading Center