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. Nonprofit Organization

    A business entity that is granted tax-exempt status by the Internal ...
  3. Qualified Charitable Organization

    A nonprofit organization that qualifies for tax-exempt status ...
  4. 501(c)

    A subsection under the United States Internal Revenue Code. The ...
  5. Write-Off

    A reduction in the value of an asset or earnings by the amount ...
  6. Charitable Donation

    A gift made by an individual or an organization to a nonprofit ...
Related Articles
  1. Investing Basics

    The Christmas Saints Of Wall Street

    Learn how some of world's richest people spread holiday cheer year-round.
  2. Entrepreneurship

    Social Finance Careers: Creating A Better World

    A financial career can be used to do more than just bring in profits. Find out how to get a career with a more social objective.
  3. Taxes

    Deducting Your Donations

    Generosity may be its own reward, but some charitable giving also provides personal tax benefits.
  4. Retirement

    Navigating Government And Nonprofit Financial Statements

    Learn how to trace where your tax dollars and charitable donations are going.
  5. Retirement

    Non-Cash Contribution Rules Could Cut Returns

    Higher standards for certain contributions could mean smaller deductions for you.
  6. Professionals

    Master Limited Partnership (MLP)

    A master limited partnership, also referred to as an MLP, is a publicly traded partnership, where the limited partnership interests are traded much like shares in a corporation.
  7. Professionals

    Human Resource Planning

    Just as companies must plan ahead to ensure a steady supply of raw materials, machinery and office space, they must also plan ahead to maintain a steady supply of quality employees. Human resource ...
  8. Professionals

    Value Proposition

    A value proposition is a company’s promise to its customers of a unique and relevant benefit. The value proposition is often the heart of a company’s advertising campaigns.
  9. Fundamental Analysis

    Work In Progress (WIP)

    Work in progress, also know as WIP, is an asset on the company balance sheet. WIP is the accumulated costs of unfinished goods that are currently in the manufacturing process.
  10. Fundamental Analysis

    Capital Budgeting

    Capital budgeting is a planning process used by companies to evaluate which large projects to invest in, and how to finance them. It is sometimes called “investment appraisal.”

You May Also Like

Hot Definitions
  1. Multiplier Effect

    The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends ...
  2. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  3. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  4. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  5. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  6. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
Trading Center