Gamma Sigma Sigma sorority President Jennifer Dillard (senior-elementary education) said Gamma Sigma Sigma is a service sorority.
Folly Fest is the organization's annual philanthropy project.
According to Dillard, last year Folly Fest raised about $5,000 for the Make-A-Wish Foundation, and the organization was able to grant two wishes.
She said that, in the past, the foundation was able to send one child to Walt Disney World and to make another bed-ridden girl's last weeks alive more comfortable.
Pam Watson (junior-kinesiology), the Folly Fest chairwoman, said it can be difficult to get bands to play because they are often asked to perform for free.
She said the opportunity to raise money for children is made possible by the generosity of venues, that allow Folly Fest be held at the location for no charge and by bands willing to play for free.
Velveeta member Brent Martin said the band has been performing at Folly Fest for at least nine years. The band covers party music from the 1980s and 1990s.
"They asked us to play, and we sort of became a tradition to play each year," said Martin.
Folly Fest used to be held at Crowbar, which has since closed.
Martin said it will be interesting because Velveeta has not played at Lulu's Nightspot before.
"It's a good cause, and you get the chance to see a couple of different bands at a good price," Martin said.
Dillard said Folly Fest is a lot of fun and is a chance to hang out with friends while helping terminally ill children.
"If kids are going to a bar anyway, why not pay the $6 to get in and help with a good cause?" she said.