Charity Fundraising Targets Explained

We Show You How They Are Calculated

Charity fundraising targets can be confusing, particularly when it comes to big charity challenges, such as overseas challenges. You see lots of different fundraising options. There are £000’s involved in sponsorship. But how are the fundraising targets calculated? Are they plucked out of thin air, or is there some form of formula?

We show you how it’s worked out.

If you ever embark on any form of charity trek or challenge, there are basically only two ways you can fund it. You can pay for it yourself (self-fund) or get sponsored to do it (attract donations from which the trip is partially paid).

Within the sponsored method, there are two options, min sponsorship or flexi fund. Here’s a full explanation of all 3 fundraising options.

The truth is, without the sponsored options, lots of people would never be able to afford to go. The upside is that the funds they raise for charities provide invaluable services. Some charities, such as Air Ambulances, rely totally on donations. They are not NHS or Govt funded.

So just how are those fundraising targets worked out? After all, the money has to be accountable.

First things first, regardless of how the trip is funded, the person taking the charity trek on (the client) has to pay the deposit (or registration fee* as it is sometimes referred to) from their own funds. Once that’s done, whatever’s left is the balance of the cost of the trip. The rest is best shown by example.

woman scratching head

The Formula

Take a charity challenge that costs £1000. The client pays a deposit of £250 leaving a balance of £750.

Whilst there is no formal ‘law’ in place, it is an accepted practice that a client cannot benefit by more than 50% of the donations received. So in order for a charity to pay the £750 balance payment on behalf of the client, the client would need to raise a further £750 as a donation to the charity. If the client was to raise just the £750 balance, the charity would pay that £750, leaving the charity with nothing. The fundraising target, therefore, would be 2 x £750 = £1500. £750 pays the balance, the other £750 is retained by the charity as a donation.

£1000 trip cost – £250 deposit = £750 balance x 2 = £1500, which becomes the fundraising target (hey presto!)

In general, if you know the overall trip cost and the deposit required, you can apply that formula to any given trip.

Why do I see fundraising target variations that don’t quite add up?

Why do I see fundraising target variations that don’t quite add up? Charities would like to receive as much as they can. So they can often raise a target in order to increase the income. It can also be a simple case of keeping the figures simple and rounded. It is purely down to the specific charity.

Can I reduce a fundraising target if it is too high for me?

Yes. By paying more of the trip cost from your own pocket you will reduce the fundraising target proportionately. It’s called flexi funding. Using the same example of the costs above:

The £1000 trip cost minus a £250 deposit, minus a £100 additional self-payment = £650 balance = £1300 fundraising target (instead of £1500).

You will see that for every £100 extra you pay yourself, it reduces the fundraising target by £200 (double).

*Do make sure that the Registration fee forms part of the overall trip cost and is not a separate fee just to join it.

Are You A Charity?

Our easy, flexible method of operating:

  • Min numbers = 2*
  • Incl bespoke groups
  • Choose your dates
  • Adjustable itineraries

* excludes the Sahara, which is a min of 4.

How Our Charity Challenges Work?

Question? Call Terry: 07725 943108

More Information

If you are considering taking on a charity challenge, see our rule of thumb on Am I Fit Enough?
And if you need some inspiration, read how wheelchair bound Luisa Pearce got on in the Sahara Desert.

The 3 Fundraising Options Explained

Under this option, you pay the entire cost of your trip yourself, directly to Travel and Trek on the dates stated.
It is usually paid in 2 phases:

  • Registration fee paid on booking.
  • The final balance paid 10 weeks prior to departure.

In addition, you then raise as much as you can for your chosen charity. Those donations go directly to the charity, usually through an online donation website. There is no formal fundraising target (unless imposed by the charity) and no agreements to sign.

Flexi funding is the middle ground between self fund and full sponsorship. As the name implies, it is designed to be flexible – YOU decide on the figures to suit YOU.

You pay the Registration fee + a final balance, both from your own funds, both to directly to Travel and Trek on the stated dates.

In addition, you commit to fundraising a specific amount (the fundraising target) by the final balance due date. From that fundraising, the remaining fees for your trip will be paid to us by the charity.

Here’s an example of how flexible it is meant to be.

Important point (the 50% rule) – industry guidelines maintain that you should not use more than 50% of what you raise in donations to pay for your trip. Methods of this nature are designed to raise funds for the charity and therefore they should retain at least 50% of what you raise. Often cited as ‘the 50% rule‘.

Let’s take a trip that costs £1000. Keeping the figures simple, say you pay a Registration fee of £100 and decide to pay a final balance of £100, it leaves £800 to pay. Based on the 50% rule above, the fundraising target would be £1600 (£800 pays for your trip, £800 is retained by the charity).

The more you pay from your own pocket, the less the fundraising target will be:

Reg fee £100 + final balance of £100 (total paid £200) = £800 left to pay = fundraising target of £1600
Reg fee £100 + final balance of £200 (total paid £300) = £700 left to pay = fundraising target of £1400
Reg fee £100 + final balance of £300 (total paid £400) = £600 left to pay = fundraising target of £1200, you get the idea…

You should ideally set the figures from the outset but there is some flexibility within that too.

You will be asked to complete a Pledge Form with the charity. It sets out the fundraising target + the dates by which amounts need to be raised. Completion of the Pledge Form is a requirement of this method and is effectively an ‘agreement’ between you and the charity in that you are ‘pledging’ to raise the stated amount in return for them paying those fees.

Your fundraising target must be met, and paid to the charity by the stated date. This enables them to pay the remaining balance for your trip.

If you find yourself unable to meet the fundraising target by the agreed date, communicate with us and/or the charity. Do this at the earliest opportunity so that we can assist you. There are options to help.

Under this option, you pay the Registration fee directly to Travel and Trek on booking.

In addition, you commit to fundraising a specific amount (the fundraising target) within a specific timescale, for the charity. From that sponsorship, the remaining fees for your trip will be paid to us by the charity.

You will be asked to complete a Pledge Form with the charity. It sets out the fundraising target + the dates by which amounts need to be raised. Completion of the Pledge Form is a requirement of this method and is effectively an ‘agreement’ between you and the charity in that you are ‘pledging’ to raise the stated amount in return for them paying those fees.

Your fundraising target(s) must be met, and paid to the charity by the stated date(s). This enables them to pay the fees for your trip on time.

If you find yourself unable to meet the fundraising target by the agreed date, communicate with us and/or the charity. Do this at the earliest opportunity so that we can assist you. There are options to help.