Why Selling Products Is the Hardest Way to Fundraise and What Schools Can Do Instead

At a glance

  • Product fundraisers can deliver a lower net return once stock, supplier, delivery and promotional costs are deducted.
  • Orders, payments, storage and distribution place significant pressure on small school volunteer teams.
  • Participation depends on supporters wanting and being able to afford the product, while income stops when the sales period ends.
  • Swoodle removes the need for stock and product handling by generating funds through annual supporter memberships.

 

Selling products is often the default fundraising choice for Australian schools, whether through chocolate drives, raffle books or trivia night prizes. The approach is familiar, easy to understand and often seen as a safe option, mainly because committees already know how to run it and supporters know what to expect when they buy in. 

Familiarity, however, does not make the process efficient. Product fundraisers can require schools to spend money before sales are confirmed, rely on a small volunteer team and manage stock, payments and distribution from start to finish. After supplier costs, delivery fees and other expenses are deducted, the amount the school actually retains may be far lower than the headline sales figure suggests, which can make the effort feel disproportionate to the return.

This article explains why product-based fundraising can be so demanding, and how schools can move to a digital, no-inventory model that reduces workload while giving supporters practical value in return.

 

Why Selling Products Is the Hardest Way to Fundraise 

 

Product-based fundraising can appear straightforward, but the sale itself is only one part of the process. Schools must also manage upfront costs, volunteer workload, supporter demand and a fundraising model that stops generating income once the campaign ends.

  • Upfront Costs Reduce the Amount the School Keeps: Product fundraisers may require schools to spend money before demand is confirmed. Advance stock orders, delivery, packaging, printing and promotional materials reduce the net return, while damaged, missing or unsold products can lower it further. A strong gross sales figure may therefore overstate the fundraiser’s actual performance, considering the costs, time and effort involved.
  • Product Fundraisers Place Heavy Pressure on Small Volunteer Teams: Committees may need to coordinate suppliers, distribute order forms, collect payments and manage supporter enquiries, then store, sort and distribute the products, with missed collections, incorrect orders and late payments adding further follow-up. In many schools, this falls to the same small group of parents, staff and committee members, and repeating it across several campaigns can lead to volunteer fatigue.
  • Supporters May Not Want or Need the Product: Product fundraisers depend on supporters wanting and being able to afford the item being sold. Some may buy only to help the school, while others may opt out because the product is unnecessary or outside their budget. Limited appeal can reduce participation and leave the school with unsold stock. 
  • The Income Stops When the Sales Campaign Ends: Most product drives operate within a fixed selling period. Once orders close and the products are distributed, the fundraising income stops. When another funding need arises, the school must select a new product, contact suppliers, prepare promotional materials and recruit volunteers again. This repeated effort makes it difficult to create a consistent fundraising income stream.

 

What Schools Can Do Instead: Digital Fundraising Through Swoodle

 

 

Schools can avoid the costs, stock handling and repeated volunteer workload associated with product sales by adopting a digital fundraising approach. Swoodle replaces the need to sell physical products with a digital membership model that generates funds through supporter sign-ups, while the platform manages payments, tracking and payouts. 

 

No Products, Upfront Costs or Unsold Stock

Swoodle allows schools to create a digital fundraiser at zero cost without paying setup and ongoing platform costs. There are no products to order, store, sort or distribute, so the school does not carry the risk of damaged, missing or unsold items.

Supporters join Swoodle by purchasing a $49.99 annual membership and selecting the school they want to support. Swoodle allocates 40% of the membership fee to the nominated fundraiser.

This gives the school a clear return from each membership without supplier charges, delivery expenses or reduced product margins.

 

Less Work for Fundraising Committees and Volunteers

The platform manages member registrations, online payments, contribution allocation and payout tracking. Committees do not need to collect order forms, handle cash, reconcile payments against stock or coordinate with suppliers.

Each school receives a shareable link to a branded fundraising page. This link can be distributed across newsletters, email lists, social media and messaging groups, extending reach without additional setup. Swoodle also provides a Launchpad Starter Kit/Welcome pack to help with the fundraiser launch. The kit includes custom marketing materials, branded social media posts, templated emails and a fundraising guidebook. 

Fundraising still requires promotion, but the operational workload is lighter because the platform handles most of the admin.

 

Supporters Receive Practical Value for Participating

Instead of buying a product they may not need, Swoodle members receive access to in-store and online offers across everyday expenses such as food and beverage, retail, health and wellbeing, services, activities, travel and experiences through participating merchants. Swoodle merchants are local independent businesses and national brands such as Amazon, HOYTS, rebel, Bunnings, IKEA, JB Hi-Fi, lululemon, Priceline Pharmacy, Cotton On and Webjet.

Offers are available throughout the 12-month membership period, with new ones added regularly. This gives supporters ongoing value rather than a single product purchased only to help the school.

The digital model can also reach a broader audience. Parents, former students, grandparents, extended family and other community members can join online from anywhere in Australia. Participation is no longer limited to people who are willing to purchase a particular fundraising product.

 

Fundraising Can Continue Beyond a Short Sales Period

Swoodle’s membership-based model generates income each time a supporter purchases an annual membership and selects the school as their chosen fundraiser. Supporters can join throughout the year, so income is not limited by the number of products sold during a short campaign.

Annual renewals may also generate further revenue from existing supporters, reducing the need to launch another product drive whenever a new expense arises. As participation grows, the school can build a more consistent fundraising income base.

The same fundraiser can support changing needs, including classroom resources, sporting equipment, excursions, student programs and facility improvements.

 

Clear Tracking and Scheduled Payouts

Swoodle records memberships, funds raised and payout activity through the fundraiser dashboard. Committees can track total accumulated revenue, amounts awaiting payout and completed transfers without maintaining separate spreadsheets.

Funds are paid 30 days after Swoodle receives each membership payment, with payouts processed at the end of each month. There is no minimum payout threshold.

This provides clear records for school leaders, treasurers and P&C or P&F committees, while making it easier to report progress to the wider school community.

 

Selling products can still have a place in a school’s fundraising mix, but the costs, administration and reliance on small volunteer teams can make repeated product drives difficult to sustain.

Swoodle offers a product-free alternative with no stock, no fundraiser costs and automated payment tracking. School fundraisers can register at no cost, create a shareable fundraising page and begin generating revenue when supporters purchase memberships and choose the school to support.

Build an ongoing fundraising income stream with Swoodle. Contact us to get started or set up your first campaign.

 

FAQs

 

How does a school start fundraising with Swoodle?

The school registers as a fundraiser, sets up its account and payout details, creates a customised fundraising page and shares the campaign link with its community. Supporters can then purchase memberships through the link and nominate the school. Meanwhile, the dashboard records sign-ups, funds raised and payouts. Our guide on How to Set Up a Fundraising Campaign with Swoodle explains each step in more detail.

 

Does digital fundraising remove the need for school volunteers?

Digital fundraising reduces the amount of manual work required, but schools still benefit from someone promoting the campaign and sharing progress with the community. Swoodle manages supporter registrations, payments, contribution tracking and reporting so that volunteers can focus on communication rather than admin work. Refer to our blog “Fundraising Without Volunteers: Is It Possible?” for a closer look at how fundraising can operate with limited volunteer capacity.

 

Can Swoodle be used alongside existing school fundraising activities?

Yes. Schools can use Swoodle alongside occasional product drives, events or raffles rather than shifting every fundraising activity online. Some fundraising events are meant for active community participation. This balance allows committees to maintain familiar community events while building a digital income stream with less stock handling and administration.

Picture of Libby MacRae<br/><span>General Manager, Swoodle</span>

Libby MacRae
General Manager, Swoodle

Connect On LinkedInWith more than 25 years of experience in sales, marketing, and operations, I have worked alongside leading Australian brands across media, advertising agencies, and client side organisations. My background spans the financial and technology sectors, giving me a strong understanding of diverse business challenges and perspectives. Having held senior leadership positions, I bring strategic thinking, commercial acumen, and a creative approach to problem solving. I am skilled at developing and implementing business processes, driving sales and marketing initiatives, and supporting organisational growth. I thrive in key leadership roles, acting as a central link that helps businesses operate effectively and achieve objectives.

Picture of Libby MacRae<span>General Manager, Swoodle</span>

Libby MacRaeGeneral Manager, Swoodle

Connect On LinkedInWith more than 25 years of experience in sales, marketing, and operations, I have worked alongside leading Australian brands across media, advertising agencies, and client side organisations. My background spans the financial and technology sectors, giving me a strong understanding of diverse business challenges and perspectives. Having held senior leadership positions, I bring strategic thinking, commercial acumen, and a creative approach to problem solving. I am skilled at developing and implementing business processes, driving sales and marketing initiatives, and supporting organisational growth. I thrive in key leadership roles, acting as a central link that helps businesses operate effectively and achieve objectives.

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