The Cost of Glitz

While the American Foundation for AIDS Research (AmFAR) usually has an excellent fund-raising record (efforts in its 1991-92 fiscal year brought in more than $20 million with only 19% going for expenses), this wasn’t the case with last September’s ultra-glitzy Jean-Paul Gaultier fashion show, the much-publicized fund-raiser that featured Madonna as honorary chairperson.

The evening included Faye Dunaway, Raquel Welch, Billy Idol and Dr. Ruth as runway models; performances by Patti LaBelle and Luther Vandross; Madonna baring her breasts; dinner for 850 major donors, and the transformation of the Shrine’s exhibit hall into a disco for 6,000 attendees.

It was definitely one of the L.A. season’s major splashes. Unfortunately, the net profit for the charity was comparatively very little.

In the final accounting, AmFAR received $726,520 in cash receipts plus another $425,000 worth of donated goods and services (including $50,000 worth of hotel accommodations and $153,000 in airline tickets).

But after costs, only $109,339 was netted. This means that expenses ran between 85% and 91%, depending upon whether non-cash donations are included as receipts.

In comparison, according to the Los Angeles City Department of Social Service, which monitors fund raising by nonprofit organizations, the average cost in Los Angeles for “event” fund raising (a happening such as a black-tie gala as opposed to something like direct mail solicitation) is 35% of receipts.

A number of reasons are given for the shortfall. AmFAR was competing with AIDS Project Los Angeles for the same major donors, and APLA had tapped the local deep pockets first for its upcoming Commitment to Life benefit.

AmFAR found that $40 tickets sold well; $250 ones didn’t. A $250,000 corporate underwriter decided to contribute to another charity instead.

“This was a one-of-a-kind event and we took a risk going into it,” says Richard M. Nordin, AmFAR’s Western U.S. director of development, who adds that this was the largest fund-raiser the charity has ever attempted and AmFAR benefited in terms of gaining visibility for the AIDS cause and reaching new supporters.

“We knew we wanted to do something that was more than another black-tie dinner in a hotel,” Nordin says. “This was really three events in one--the show, the dinner and the disco. I don’t think we’d ever do three events in one like this again. We’ve clearly adjusted.”

Could You Pick Up a . . . ?

Before our visits to the last two inaugurals, hardly anyone nagged Social Climes about bringing back souvenirs or memorabilia. This time it’s different. This Democratic inaugural has sparked a new wave of get-me-this and get-me-that requests from friends and family. Among the most-requested items are commemorative T-shirts, anything with the initials FOB (Friend of Bill) on it, a pin of a donkey playing the saxophone, and one request for “something that has to do with Socks the cat.”

Maybe some commemorative catnip?