Volunteer Fire Department Fundraising: Events vs Emergency Services Revenue

While pancake breakfasts generate just 8-19% of volunteer fire department budgets, EMS transport billing can produce $650-$800 per transport, potentially replacing 25% of operating costs. Small departments still rely heavily on fundraising, but emergency services revenue offers greater scalability as call volumes increase.

Key Takeaways

• EMS transport billing generates $650-$800 per transport, potentially replacing 25% or more of a volunteer fire department's operating budget

• Traditional fundraising events like pancake breakfasts typically account for only 8-19% of annual income for volunteer departments

• Small volunteer departments with populations under 2,500 rely more heavily on fundraising events (up to 25% of revenue)

• A balanced funding approach combining multiple revenue streams provides the most sustainable financial model for volunteer departments

• Emergency services revenue scales with call volume, creating growth potential that traditional fundraisers can't match

Volunteer fire departments across America face a critical funding dilemma: continue relying on pancake breakfasts and car washes, or find more sustainable revenue streams that match their growing operational demands. While traditional community fundraisers remain a cornerstone of volunteer fire department culture, the financial reality shows they typically generate only 8-19% of a department's annual budget. Today's volunteer fire departments are increasingly turning to emergency services revenue—particularly EMS transport billing—as a more reliable alternative that can deliver substantially higher returns. Organizations like LifeStyle Fundraiser have recognized this shift and now offer membership-based fundraising solutions that can supplement a department's revenue strategy.

Traditional Fundraising Events: Community Value vs. Financial Reality

1. Community engagement benefits

The local pancake breakfast, chicken BBQ, or community festival does more than raise money—it strengthens community ties and boosts department visibility. These events create goodwill, help recruit new volunteers, and maintain the department's position as a community cornerstone. A successful fundraising event brings the community together, allowing residents to meet their local firefighters and understand the department's needs firsthand. This face-to-face interaction builds trust and support that extends beyond financial contributions.

2. Revenue ceiling limitations

Despite their popularity, traditional fundraisers face significant revenue limitations. Even well-established annual events rarely generate more than mid-five-figure sums. National data shows that for most volunteer departments, fundraising events and donations account for less than $50,000 annually—often insufficient to purchase even basic equipment like a single set of turnout gear for the entire department. These revenue ceilings become particularly problematic as equipment costs rise and operational demands increase. A new fire engine can easily cost $500,000 or more, making the proceeds from even the most successful pancake breakfast seem inadequate by comparison.

3. Volunteer burnout concerns

Perhaps the most significant hidden cost of traditional fundraising is volunteer burnout. The same dedicated individuals who respond to emergency calls are typically expected to plan, organize, and staff fundraising events. This creates a double burden that stretches limited volunteer resources even thinner. With nationwide declines in volunteer availability, departments find themselves caught in a troubling cycle: fewer volunteers means more strain on existing members, who must then divide their time between emergency response, training, and fundraising activities. The result is often burnout and further volunteer attrition.

4. Weather and economy vulnerabilities

Traditional fundraising events are also vulnerable to factors beyond a department's control. Outdoor events can be ruined by bad weather, while economic downturns can reduce community giving capacity. The COVID-19 pandemic demonstrated this vulnerability when departments nationwide were forced to cancel in-person fundraisers, creating unexpected budget shortfalls.

Emergency Services Revenue: The Growing Alternative

As traditional fundraising models strain under volunteer shortages and revenue limitations, emergency services revenue has emerged as a viable alternative for volunteer fire departments nationwide. This approach transforms the department's core service from a purely public good into a partially fee-supported operation.

1. EMS transport billing ($650-$800 per transport)

EMS transport billing represents the most significant revenue opportunity for volunteer departments that provide ambulance services. By billing patients' insurance (Medicare, Medicaid, or private insurance) for ambulance transport, departments can generate substantial income without directly charging residents out-of-pocket. The numbers are compelling: average collections range from $650 to $800 per billable transport, according to multiple industry studies. For a department with moderate call volume, this can translate into six-figure annual revenue. Fairfax County, Virginia reports $23 million in annual EMS billing receipts, while Memphis, Tennessee saw a $2.5 million increase in collections during the first year after optimizing their billing practices. The beauty of transport billing is that it uses insurance dollars already set aside for emergency medical services. Rather than leaving this money on the table, departments can capture these funds to support their operations and equipment needs.

2. Subscription plans ($35-$120 annual fees)

Subscription programs (sometimes called "membership" plans) offer another revenue stream for volunteer departments. Residents pay an annual fee—typically $35 to $120—that waives out-of-pocket costs for emergency services. These programs provide departments with predictable cash flow while giving residents financial peace of mind. Popular in states like Tennessee, Alabama, and parts of California, subscription models work particularly well in communities with limited tax bases or restrictive levy limits. They create a direct connection between service users and funding, without requiring a complex billing infrastructure.

3. User-fee ordinances and cost recovery

Beyond EMS billing and subscriptions, departments can implement targeted user fees to recover costs for specific services. Common examples include:

• False alarm fees that discourage system abuse and offset response costs

• Inspection permits for commercial properties that fund prevention activities

• Hazardous materials response cost recovery from responsible parties

• Special event standby fees for large community gatherings

These user fees align costs with specific services rather than distributing them across the entire tax base, creating a more equitable funding model.

Financial Impact: By the Numbers

The financial contrast between traditional fundraising and emergency services revenue is stark. While a successful fundraising event might net $5,000 to $15,000 after expenses, a single day of EMS transports can generate equivalent revenue with less volunteer time investment. Consider a medium-sized volunteer department with 500 annual billable transports. At an average collection of $700 per transport, this department could realize $350,000 in annual revenue—far exceeding what most fundraising programs could generate in the same timeframe. The economic value proposition becomes even clearer when considering volunteer time. The estimated economic value of volunteer EMS labor exceeds $500,000 annually in avoided wages for a department providing 24/7 coverage. By implementing billing programs that maximize return on this volunteer contribution, departments can better sustain their operations without overtaxing their members. It's worth noting that EMS billing does require a feasibility threshold of approximately 250-300 billable transports per year to offset administrative costs. Smaller departments may need to consider regional approaches or simplified subscription models if their call volume falls below this threshold.

Department Size Matters: Finding Your Optimal Funding Mix

Not all volunteer fire departments are created equal, and the ideal funding strategy depends significantly on department size, call volume, and community demographics. Here's how different departments can optimize their funding approach:

1. Small rural departments (<2,500 population)

Small rural departments face unique funding challenges. With limited call volumes (often below the 250-300 transport threshold for EMS billing viability) and smaller tax bases, these departments typically rely more heavily on fundraising events—up to 25% of their annual revenue. For these departments, community events remain essential but should be strategically selected to maximize return on volunteer time. Instead of numerous small events throughout the year, many successful small departments focus on one or two signature annual events with strong community traditions and corporate sponsorship potential. Subscription programs may offer a more viable alternative to transport billing for these departments, providing steady revenue without the administrative overhead of a full billing program.

2. Mid-sized combination departments

Mid-sized departments serving populations of 2,500-10,000 often operate with a combination of volunteer and paid staff. These departments typically have sufficient call volume to benefit from EMS transport billing but still rely on community fundraising for capital purchases and special projects. The optimal strategy for these departments often involves maintaining signature community events for visibility and engagement while implementing EMS billing to support daily operations. This balanced approach preserves community connections while establishing more sustainable revenue streams.

3. High-volume suburban departments

Larger volunteer or combination departments serving suburban areas with populations over 10,000 generally have the call volume necessary to make EMS billing highly profitable. For these departments, fundraising typically contributes less than 10% of annual revenue, with local taxes and service fees providing the bulk of funding. These departments often benefit most from professionalizing their revenue approach, potentially outsourcing billing to specialized vendors who can maximize collections while ensuring compliance with healthcare regulations.

Success Stories That Changed Funding Models

Several case studies demonstrate how volunteer departments have successfully transitioned to more sustainable funding models:

• Montgomery County, Maryland: This combination system implemented county-wide EMS billing and directed 15% of net revenue back to volunteer corporations. This approach has generated over $5 million annually for volunteer departments, funding apparatus replacement and reducing dependency on traditional fundraising.

• Haletown VFD, Tennessee: This small rural department implemented a $35 annual subscription program alongside its $40,000 county allotment. The subscription model provides stable revenue while protecting non-member residents from potential $2,000-$3,000 response invoices.

• Memphis, Tennessee: By simply changing their billing vendor and optimizing collection practices, Memphis saw EMS billing revenue increase by 18-25% over three years without raising taxes or fees. This example shows that even existing billing programs can be significantly optimized.

The Sustainable Path Forward: Balancing Tradition with Financial Necessity

The most successful volunteer fire departments find ways to honor their fundraising traditions while adopting more sustainable revenue models. Rather than viewing emergency services revenue as replacing community events, forward-thinking departments see it as complementary—allowing them to focus fundraising efforts on community engagement rather than desperate financial necessity. A balanced funding strategy typically includes:

1. Maintaining signature community events that strengthen public relations and volunteer recruitment

2. Implementing appropriate emergency services revenue based on call volume and department size

3. Advocating for stable local government support that recognizes the true economic value of volunteer service

4. Utilizing grants strategically for one-time capital purchases and program start-up costs

5. Finding innovative fundraising models that reduce volunteer time investment while maintaining community connections

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