Do appeals “take money away” from your auction fundraiser?

By · Saturday, July 4th, 2009

abb-crowd-1During the course of my consultations with clients, we often discuss a cash appeal.  If the organization is new to the concept, I explain it to them.  One of the first questions I am asked is, “Don’t you think that we’ll make less money in the silent auction and even the live auction if we also conduct an appeal?”

No, I don’t.

Here’s a wedding-based analogy to explain my point.

I’ve attended a few weddings during which the bride and groom have a money dance.  For a song or two, a guest can dance with either the bride or groom for a fee.  Depending on the crowd, the guests might pay $5 to $100 for the privilege of busting a move with one of the newly-married individuals.

Given that each of those guests has already given a wedding gift to the couple, anyone who contributes during the money dance is “gifting twice.”  Do they care?

I don’t think they do. I don’t think it affects the actions of any guests.  Those that want to dance will dance, regardless of whether they already gave a gift to the couple.

Imagine the scene.  The music is jamming, guests are dining on good food and strong drinks, and everyone is chatting.  In the midst of this great time, it’s announced that there will be a money dance.  Joe and Helen, two of the guests, cheer and clap with the crowd: “Whoo Hooo!”

Joe is excited!  He’s happy for the couple!  He jumps up to grab the bride for a dance.

Which scenario happens next?

1.  Joe whisks the bride around the floor to a fast polka while slipping her a $20 bill.

OR

2.  Joe stops abruptly at the edge of the dance floor.  “WHOA.  Wait a second,” he thinks, “We gave this couple a gift.  My wife bought them sheets and I wrapped them earlier today.  Those greedy, unappreciative kids.  We already gave them a gift, and they have the nerve to ask for more.”  Joe skulks back to his chair.

I’ve never seen the second scenario happen. Have you?

It seems the decision to make a cash gift donation occupies a different place in our psyche than the decision to bid in a live or silent auction.

When presented properly to the crowd, appeals can only build your total auction revenue.

(c) 2009 Red Apple Auctions LLC

P.S.  This blog post is OK, but – wow! – you should read the useful articles I write for my (free) Benefit Auction Ideas e-zine.  Subscribe here.

Comments

Sherry:

Our committee wants to do raffle appeal through the mail for an upcoming wine event (which includes a silent auction). We did this for our golf tournament, which was a great way to get those involved that either couldn’t afford to golf or didn’t care to. However, our wine event has a much lower ticket price, wider appeal, and can have an unlimted number of attendees. Do you think people will buy our cheaper raffle ticket rather than purchasing an event ticket?

By Corrine SandersNo Gravatar on July 11th, 2009 at 4:28 PM

I’m Sherry’s assistant. I’m the one primarily “in charge” of moderating the blog, so I’m going to answer this question.

A raffle is when you sell tickets and the winner gets a prize. An appeal is when you ask for money and the donor doesn’t get any specific “thing or item” in exchange. Offhand, I’m not sure what a “raffle appeal” is … are you conducting a hybrid of the two? I’ll try to answer.

It’s great to pre-sell raffle tickets, especially if they are pricier and might not all sell at the event. We see a lot of groups do this for automobiles. The group will sell 500 or 1000 $100 tickets for a chance to win the car, and the winner doesn’t need to be present to win. If they must be present to win (such as if they must select the prize they want), state that in the raffle information. (Raffle laws vary. Check local laws.)

If you are simply asking for donations via mail (I’m guessing you’ll include that info in your invitation), and you are concerned that guests will make a donation in lieu of attending your event, I wouldn’t let that stop you. There can be a lot of reasons as to why someone doesn’t attend, many of which have nothing to do with your event. It’s fine to give those guests who are going to be on vacation or attending their son’s wedding an opportunity to contribute, even if they can’t physically attend. I’m sure you’ll be running a great event, so there’s no reason to assume people will try to shirk out of attending! Typically for a cash donation, guests can give as little or as much as they want. You seem to refer to a specific price, so maybe that’s a raffle?

Key point: Sell those tickets onsite, too. Put a couple of outgoing volunteers on that task to ensure everyone attending knows you’ve got a great ticket price on that raffle.

Maybe some of our other readers will weigh in on this, too? Anyone?

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