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. Crisis Management

    The identification of threats to an organization and its stakeholders, ...
  3. Foot Traffic

    The presence and movement of people walking around in a particular ...
  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. Personal Finance

    Top Fund-Raising Strategies For Nonprofits

    Top fund-raising strategies for nonprofit organizations
  2. 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
  3. Markets

    Trump Could Win Presidency Without Wealthy Donors

    Recent fundraising efforts suggest that Trump can successfully use small online campaign contributions as an alternative to taking money from wealthy donors.
  4. 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.
  5. Managing Wealth

    The Many Ways Charities Make Money

    More than half of all charities generate revenue from "other" ventures. Here are some of the most common revenue generating methods for charities.
  6. Personal Finance

    What IRS Form 1023 Is Used For

    To be treated as a tax-exempt organization, start by filling out this form.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
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. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center