Why hold an auction?
Why do groups organize fundraising auctions? We hear many answers.
- “Our private school is raising money for financial aid.”
- “The church is in the midst of a capital campaign.”
- “Our public school is trying to save a music and art program.”
- “Our (for-profit) company has a foundation. We’re incorporating an auction into our annual User Conference as a fun way to encourage employees to donate.
- “We’ve been around a long time, but no one knows who we are. We need to draw attention to our cause.”
- “We want to add philanthropy into our trade show as part of our trade industry’s socially conscious initiatives.”
Whatever your reason, be aware that auctions take work to organize. You’ll need to enlist help. Most events have a core committee with several sub-committees. Usually the more people you involve in creating the event, the greater success you’ll have.
This page is devoted to helping you convince others that holding a benefit auction is the best course of action for your cause. Here are some pointers.
Generate Funding
A well-planned event is a reliable source of income. Generally speaking, groups can decide how much money they want to make and then plan an auction to reach that goal. Furthermore, auction organizers are generally more comfortable asking for in-kind donations of goods for an auction than for outright donations of money.
The numbers prove that benefit auctions are on the rise. According to a study by MORPACE International, charity auction revenue grew from $15.6 billion in 2006, to $16.2 billion in 2007. That is an increase of 4.1%, continuing a steady climb year over year. (We expect growth in 2008, too, and we’ll let you know those numbers as soon as they are released, which will probably be a few months into 2009.) The consistent results yielded from benefit auctions are why less than 1% of groups discontinue auction events. Auctions serve as reliable income.
Unrestricted Donations
Fundraising is essential for organizations because funding is scarce. Governmental funding and grant money is disappearing. Citizens are coming to understand that it is their job to finance those causes they find important in their community. Benefit auctions fill this need by encouraging and publicly thanking supporters who give freely.
Expectation from your Community
Sometimes a group will organize a benefit auction because the event itself has become expected from its community. A fun event and a worthwhile cause build community support.
Highlight Important Sponsors
Benefit auctions offer many ways for corporate sponsors to be showcased. The group enjoys the money the corporate sponsors donate to them, and in turn, the sponsor’s name can be seen throughout the event. A high-level sponsor might be offered multiple ‘hooks’ from a nonprofit, such as a table for eight at the banquet, an ad in the program, a logo on the back of bidder numbers, a logo on a bid sheet, links to the website, a logo on screen prior to and during bidding, and/or its name announced throughout the evening.
Showcase the Impact of Your Group
The benefit auction offers a perfect opportunity for a group to “tell its story.” Many groups use a portion of the live auction to showcase a success story before asking for tax deductible contributions from the audience.
Awareness for your Cause
An annual auction serves as a scheduled reminder to your community. It draws attention to your cause and promotes your mission.
Develop Donors and Prospects
Auctions are as much about raising funds as they are about building friendships. Auction attendees enjoy themselves and get to mingle with other like-minded, oftentimes affluent people. Over time, these prospects become donors.
