What Is a Discount Card Fundraiser and How Does It Work?

Fundraising can be a daunting task, especially when traditional methods feel overused or don’t quite resonate with potential donors. But what if you could raise money for your cause and offer something of real value in return? That’s where discount card fundraisers come in. These fundraisers allow organizations to raise money while providing buyers with valuable discounts from local businesses. Whether you’re part of a school, sports team, nonprofit, or community group, a discount card fundraiser could be the solution you’ve been looking for.

However, discount card fundraising remains a popular and effective method for many nonprofits. According to The Fundraising Authority, many schools, churches, and charities have found great success creating their own discount card fundraising programs. These fundraisers involve partnering with local businesses to offer discounts to cardholders, providing value to both the community and the organization.

How Does a Discount Card Fundraiser Work?

In a discount card fundraiser, organizations sell cards that provide holders with discounts at participating local businesses. These cards often include deals like a percentage off purchases, buy-one-get-one-free offers, or discounted services. The organization earns money from the sale of each card, and the businesses benefit from exposure to new customers. It’s a win-win for everyone involved.

Key Components of a Discount Card Fundraiser

• Discounts for Supporters: Cardholders get access to valuable discounts at local businesses, encouraging them to make the purchase.
• Local Business Partnerships: Businesses offer discounts in exchange for exposure to potential new customers who are part of the fundraising organization’s network.
  
• Sales Process: Organizations sell the cards to supporters, either online or in person, and collect the proceeds.
  
• Long-Term Value: The cards are often valid for a year or more, giving supporters continued value for their purchase.
  

The simplicity of this process is what makes it so effective. Once an organization secures business partnerships and designs the card, selling it becomes straightforward, and the funds quickly begin flowing in.

Why Choose a Discount Card Fundraiser?

Here’s why discount card fundraising stands out from other methods of fundraising:

1. High Profit Margins

One of the most compelling reasons to choose a card fundraiser is the profit margin. Discount card fundraisers consistently offer some of the highest profit margins in the fundraising industry, with organizations earning up to 90–93% profit per card sold. This is because the costs involved in creating and distributing the cards are relatively low, meaning that the majority of the proceeds go directly to the organization.

2. Long-Term Savings for Supporters

Unlike other one-time fundraising events or product sales, a card fundraiser provides ongoing value. The cards are typically valid for a year or more, which means supporters can continue to benefit from discounts long after they’ve made their purchase. This is a big draw for potential buyers, as they know they’ll be able to save money at local businesses for months to come.

3. Support for Local Businesses

Another benefit of this fundraising method is the support it provides to local businesses. Businesses that participate in the program gain increased visibility in the community, attracting new customers who may not have visited otherwise. This local collaboration fosters community support and strengthens relationships between the organization and its surrounding businesses.

4. Easy to Organize

When compared to other types of fundraisers, discount card fundraisers are relatively simple to organize. Once business partnerships are in place and the card design is finalized, the process of selling the cards is straightforward. The organization can sell them online, via social media, or in person, maximizing the reach with minimal effort.

Related Article: How Do Fundraiser Discount Cards Work?

Steps to Organize a Discount Card Fundraiser

Starting a card fundraiser may seem overwhelming, but it’s actually a simple process. Follow these steps to ensure your fundraiser is successful:

1. Define Your Fundraising Goals

The first step in organizing a card fundraiser is setting clear goals. How much money do you need to raise? Determining a fundraising target will help you figure out how many cards you need to sell. Setting specific, measurable goals makes it easier to track progress and stay focused.

2. Partner with Local Businesses

To make your discount card fundraiser work, you need local businesses to participate. Reach out to businesses in your area and offer them the chance to be part of your fundraising efforts. The appeal to businesses is clear: they get exposure to potential new customers in exchange for offering a discount. The more businesses you partner with, the more appealing your card will be to supporters.

3. Design the Cards

The next step is designing the cards. You’ll want a design that’s eye-catching and professional, with clear details about each business’s discount. You can either hire a designer or use an online tool to create custom cards that include all relevant information, such as expiration dates and how to redeem each discount.

4. Set Pricing

How much will the card cost? The price should reflect both the value of the discounts offered and your fundraising goals. If the card provides access to significant savings, supporters will likely be willing to pay a higher price. Set a price that allows you to maximize profits while offering good value to your community.

5. Promote Your Fundraiser

To successfully sell the cards, you need to promote your discount card fundraiser. Use social media, email newsletters, flyers, and word-of-mouth to create buzz around the campaign. The more excitement you generate, the more likely people will be to purchase the cards. You can also offer incentives for people who refer others to buy cards or purchase in bulk.

6. Distribute the Cards

Once the cards are sold, you need to distribute them. If you’re offering physical cards, you can either mail them to supporters or hand them out in person. If you’re offering digital cards, you can easily send them via email or provide a downloadable version for mobile devices.

Related Article: How to Plan A Discount Card Fundraiser?

Tips for Maximizing the Success of Your Discount Card Fundraiser

To ensure your discount card fundraiser is as successful as possible, consider these tips:

• Offer a Variety of Discounts: The more diverse the discounts, the more likely people will be to purchase the card. Include a mix of food, retail, and entertainment deals to appeal to different interests.
  
• Set a Deadline: Creating a sense of urgency can drive more sales. Set a deadline for purchasing the cards to encourage supporters to act quickly.
  
• Track Your Progress: Keep track of your sales and adjust your strategy as needed. If certain businesses or discounts are more popular, promote those to boost sales.
  
• Incentivize Referrals: Offer rewards for people who refer others to buy cards. This can help expand your reach and increase sales.
  

Conclusion

A discount card fundraiser is a smart, profitable, and community-driven way to raise money for your organization. With the ability to generate high profit margins and provide long-term value to supporters, this fundraising method is both sustainable and effective. By partnering with local businesses and following the simple steps outlined above, you can run a successful discount card fundraiser that benefits your cause.

Tired of fundraisers that fall flat? DuraCard gives your campaign the edge with durable, professional discount cards your supporters actually use and businesses are proud to back. No messy products, no complicated selling. Just a clean, smart way to raise more and give value back to your community.

Frequently Asked Questions

How long are the discount cards valid?

Cards usually expire one year from the date of printing, but the validity period can be customized with agreement from participating businesses.

Can we customize the card with our organization’s logo?

Yes, most providers allow you to include your organization’s logo and branding on the front of the card.