Why Hold A Benefit Auction?

According to a study by MORPACE International and Harris Interactive, the members of the National Auctioneers Association (NAA) conducted over 129,000 benefits auctions in the USA in 2003. In 2004, AUCTION WORLD magazine reported that charity auction sales grew over 8½ percent to a record $14.5 billion. And according to AuctionPay and The New York Times, fewer than 1% of groups discontinue auction events.

Why the growth in benefit auctions? Because non-profits recognize the power of an auction fundraiser.

Benefit auctions take some work to organize, but here’s why they are worth the effort.

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.

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.

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 nonprofit 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 nonprofit 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, 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.