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The Money

Candy Bars, Car Washes and Recurring Income: Comparing Fundraiser Margins

Committees usually compare fundraisers on the percentage a vendor quotes. That is the least useful number available. What separates the good options from the exhausting ones is the shape of the return: how much of it is real after costs, how many volunteer hours it consumes, and whether any of it happens again without being organized a second time.

Misty Gaunt
Misty Gaunt Fundraising partner, GoodFundraising.org 615-414-3837

Compare shape, not percentages

Quoted margins are not comparable across fundraiser types, because they measure different things. A product vendor quotes a share of the retail price and leaves out the boxes nobody sold. A car wash has no vendor and no quoted margin at all, so it looks like pure profit until you count the Saturday. A raffle's percentage depends on whether the prize was donated.

So instead of pretending those numbers line up, compare four things that actually decide whether a fundraiser was worth running: what the group keeps after real costs, how much volunteer labor it takes, whether anybody has to buy inventory before earning anything, and whether the income repeats on its own.

Fundraiser What the group keeps Volunteer hours Repeats itself?
Chocolate and candy boxes A share of each bar sold, minus every bar that came back unsold or eaten. The unsold portion is the whole game. Moderate and spread thin: distribution, chasing boxes, collecting cash from many people. No. Income stops when the last box is returned.
Car wash Nearly all of what comes in, since costs are soap, water and a borrowed lot. Weather can take the whole day. High, but concentrated in one day and genuinely fun. No sign-ups, no forms, no accounts. No, but it is easy to schedule again.
Cookie dough A share of a higher-priced item, so fewer sales are needed. Freezer logistics and a delivery day are part of the cost. High on delivery day. Somebody must be present when the truck arrives and stay until every tub leaves. No. Some families reorder next year, but only if you run it again.
Wrapping paper and gift catalogs A share of catalog prices, which buyers know are above retail. Works on goodwill more than value. Moderate. Order forms, collation, per-family sorting at the end. No, and strictly seasonal. Nobody buys wrapping paper in March.
Discount cards Most of the card price, since the cost of printing is small. Depends entirely on securing local merchants first. Front-loaded and unglamorous: the merchant recruiting is real work before a single card sells. No. Cards expire, and merchants must be re-signed each year.
Restaurant nights A share of checks from your crowd only, on one evening. Modest by design. Low. Mostly promotion. This is the best hours-to-dollars trade on the list. No, though many restaurants will book you again quarterly.
Raffles Ticket revenue minus the prize, if the prize was bought. Close to everything, if it was donated. Moderate, plus a compliance burden. Check your state and district rules before selling a ticket. No. Each raffle is a fresh prize and a fresh approval.
Recurring supplement model 20% of every first order, then 10% of every reorder that customer places afterwards. Nothing bought upfront, nothing unsold. Low and distributed. Each participant shares a personal link; orders ship direct, so nobody handles stock or cash. Partly. The reorder share continues after the campaign ends, but only while customers choose to keep buying.

Almost every traditional fundraiser is a straight line: more hours in, more dollars out, and both stop on the same day.

Where traditional fundraisers genuinely win

This is not a list where one option beats the rest on every measure, and any page that tells you otherwise is selling something.

A car wash builds a team

A car wash needs no accounts, no links, no parental permission slips and no explaining. Freshmen who have not spoken to each other yet spend four hours soaking wet in a parking lot and come out a team. That has real value that never shows up on the deposit slip. If your group's actual problem is cohesion rather than cash, run the car wash.

A restaurant night asks almost nothing

A restaurant night is the cheapest fundraiser in volunteer hours on the entire list. Post the flyer, show up, eat. The return is modest, but the return per hour of adult attention is excellent, and adult attention is the scarcest resource any committee has.

Chocolate is fast and requires no explanation

Nobody needs a briefing to sell a candy bar. When a team needs money in eleven days for an entry fee, a product with a one dollar price point and no learning curve is the correct tool. The recurring model is not the correct tool for that situation, because it takes time for customers to accumulate.

Four school-age students holding handmade thank you signs
The best fundraiser is usually the one your particular group will actually finish, not the one with the highest number on the vendor sheet.

Where the shape of a recurring model is different

Three structural differences, and none of them are about the percentage.

Nothing is bought before anything is earned. No case of chocolate, no minimum order of cookie dough, no print run of cards. That removes the risk that a fundraiser loses money, which is a genuine outcome for groups that over-ordered inventory.

The buyer is not donating. LiveGood prices a few dollars above cost, so a household that already buys supplements pays less than retail. Organic D3-K2 is $19.95 retail and $9.50 at member price. Ultra Magnesium Complex is $19.95 and $9.95. That changes the ask from "help us out" to "this is cheaper than what you buy now," which matters a great deal by the fourth fundraiser of the school year.

Part of the income outlives the campaign. The 10% on reorders keeps arriving after the committee has moved on, with the honest caveat that it depends completely on customers deciding to buy again. Nobody controls that, and it should never be budgeted as though somebody does.

Icon of a hand holding a coin

The comparison question that settles it

For each option you are considering, ask: if we ran this and got a mediocre result, what would we have lost? A mediocre chocolate sale loses the cost of unsold boxes and a month of goodwill. A rained-out car wash loses a Saturday. A mediocre recurring campaign loses the hours spent asking, and nothing else, because there was nothing to buy in the first place.

Most groups should run more than one

The framing of "which fundraiser is most profitable" assumes you pick one. In practice the strongest fundraising calendars pair a fast cash event with something that accumulates quietly underneath it.

Run the car wash for the team culture and the quick deposit. Run the restaurant night because it costs nearly nothing to run. Then put the recurring model underneath both as the line that does not need to be reorganized every season. That combination gives a treasurer something predictable to plan against without asking families for a fifth favor in the spring.

Before you commit to any of it, price the option you already run properly, including the unsold inventory and the hours. The hidden costs of a traditional fundraiser walks through the line items committees usually leave out, and fundraising fatigue covers the cost that never appears in any accounting at all.

Not sure which of these fits your group?

Tell me your roster size, your timeline and what you are raising for, and I will tell you honestly whether a recurring model is the right tool or whether you should just run the car wash. Both answers happen.

Start your fundraiser Free to start. Earnings depend on the customers your organization brings in; no specific income is guaranteed.
Misty Gaunt

Misty Gaunt

Misty helps schools, teams, churches and nonprofits set up recurring fundraisers through LiveGood. She will look at your roster and tell you whether the model fits before you commit to anything. Call or text 615-414-3837.