Fundraising of any type must first benefit a cause seen as worthy by potential benefactors, to be successful. Additionally, realistic goals must be set.
Properly conducted, the auction process allows the participants to have an enjoyable experience while helping a worthy cause. Improperly conducted, the participants feel like sheered sheep, with a negative feeling, making future fundraisers very difficult. This article will help you determine the best steps for your next fundraising auction.
The least exciting auctions include an endless offering of items no one really is too excited about. I have labored through auctions with gift certificates for haircuts, sandwiches, one night “vacations” at the local Holiday Inn, and so forth. I do not downgrade the businesses which donated the items. It is just obvious to me that the people who were soliciting the items did not use any creativity or perhaps honest effort. The result is a long, boring event that no one will ever want to attend again. Including the auctioneer. Most importantly, the worthy cause now has a boring and “unworthy” stigma attached to it.
The next disastrous auctions I have attended (as a participant) is when an inexperienced, or even worse, a non experienced person acts as the auctioneer. The role of an auctioneer is far beyond just talking fast. Crowd entertainment, or sometimes even crowd control is just as important as the art of calling an auction. The auctioneer is representing the worthy cause, and must remain calm, collected and unaffected by any, sometimes inebriated, heckler in the crowd. Only years of experience can prepare a person for the “on the spot” position at all times. Experience provides the auctioneer the ability to know when to speed up, slow down, go sideways, stop, and especially when and how to work the crowd. This may be your first auction event and it will seem overwhelming. It should be the auctioneers’ some hundredthauction event. What seems overwhelming to you and your staff, is simply business as usual to an experienced auctioneer.
To me these are basic simple steps. However, it still takes me many hours to get them across to many fundraising staff members.
Step 1. Know your reason for requesting assistance. What is your worthy causes’ best attributes? What have they done in the past 12 months? What could they do this year with more donations? Is there a special need that requires extra funding? Why would anyone want to help you accomplish your goals?
Step 2. Target your focus group. Hey, this is business! Are you trying to get high income participants, white collar participants, a certain business group, or whatever you are working with. Know your focus group. Know what will, and what will not impress them enough to show up. What If they aren’t impressed by a gift certificate for a haircut….then DON’T SOLICATE FOR ONE! What theme will be the best? I will get into this more later. What is your competition for their attention?
Step 3. Know your costs of conducting the event. Great news….you just brought in $130,000! Bad news, the event cost you $135,000! Yeah, yeah…you are a worthy cause so EVERYTHING is free! Wrong! No marketing…..no one shows up because no one knew it was happening. Nothing special or entertaining…….even marketing won’t help! With the use of a highly experienced auctioneer, you should be able to rely on assistance on obtaining very reasonable, and sometimes even free event marketing. Keep in mind though, no matter how deserving your cause may be, a successful auction event requires a huge amount of behind the curtains activities by the auctioneer. Many times, favors are called in by the auctioneer to benefit the worthy cause. The time, effort and expertise the auctioneer provides your cause, could easily be earning the auctioneer (and his staff) a lot more income. Do not expect the auctioneer to perform his, or her, magic for free. Are you renting a banquet facility? is it a high end facility? Are you providing food, drinks, entertainment, door prises, gift bags…….the list goes on. I have even seen churches and other groups charge their own members a fee to offset power, air conditioning, and other costs.
Step 4. Know what the items to be sold at the auction should be. If your target focus group isn’t impressed by a gift certificate for a haircut….then DON’T SOLICATE FOR ONE! Solicate the hairdresser for a years supply of haircuts for a family of 4. Or even better yet….a ladies cut, frost, style, pedicure and nail painting. Or a mother daughter day at the day spa! In other words……you need to ask to obtain. If you wouldn’t want it….most likely no one else is going to PAY for it. It is easier for a business to give away labor than “hard goods”, from a simple financial standpoint. However….businesses give and throw away millions of dollars in obsolete or discontinued NEW merchandise every year. I have done it myself. “Ask and ye shall receive”. If you are a true tax exempt non profit organization, you can offer the tax deduction advantage. Remember however, you are most likely NOT a tax consultant. Don’t offer more than you can produce! Successful auction events include cars, boats, exotic trips, jewelry, etc. Lets see now……who could possibly help show you where to find these donated items? Oh yeah, the guy that’s done this before…..The Auctioneer. I can not express this enough……weak donated items will guarantee a disastrous event. As a professional auctioneer, I will not assist with any worthy cause that is unable to obtain quality items. Do something else. Remember, this has to be an exciting event to lure the interest of participants.
Step 5. Choose a theme for the event. Please be creative. A western hoe-down is about as exciting as watching paint dry. I mean no disrespect to my western friends…..this theme has just been over used so much, its nothing new. One of my favorites is to advise the hiring of a good, experienced local magician to loosen the crowd just prior to the auction event. Then occasionally include him during the actual auction event. These entertainers have great instincts and the auctioneer can easily create a banter with them. To help offset the cost of the magician have him donate an appearance at a party, or to teach someone a small number of easy magic tricks. “Help (the name of your worthy cause) make their troubles DISAPPEAR!”. Again…..keep your target focus group in mind. What would they be willing to PAY to participate in? Do not overlook this step. You need the crowd in a happy mood. Do not expect the participants to come dressed in some vintage, or disco, or any other dress code. I have never really seen this work except in the movies.
Step 6. Avoid the temptation to use the pity card. Do not flash photos of hungry children in Africa, abused kittens in the metro city, or cancer patients in near death conditions on a big screen. Avoid speeches to “increase” the giving of the participants. Whereas my heart goes out to all the worthy causes, it will absolutely kill the entertaining format we strive to achieve. Remember, we are conducting an event to generate the most funds possible, not sell the cause. The participants already know and trust your cause or they would not be there.
Step 7. Timing. This is business. Does your target focus group have a certain time of the month that they have more dispersible funds than other times of the month? Is it too close to Christmas, tax deadline date, some other large event in the area, or any other adverse condition? Can you increase donations by emotional times such as Christmas, or financial times as tax donation time limits? Can you stockpile the donations if necessary? Keep the actual event to a limit of 3 hours. Ever wonder why professional entertainers only do 60-90 minute shows? They easily could do more. It is because you always leave them wanting more. The participants tell everyone how great it was….rather than how L O N G it was. Plus the auctioneer can make remarks like “you only have 60 minutes to help this great cause”. It helps to put a sense of urgency to get involved while you still can. This helps the bids on the items to remain high.
Step 8. Thank the business donating the items. With large quality items, a short statement or two about the business just prior to auctioning the item will go a long way with the business. If it is a significant donation, even recognition if they are in attendance may be appropriate. Always ask their permission in advance before you put the spotlight on them. Not everyone will appreciate such a public display. Always end the event with a final thank you and ask the participants to thank them with applause. Of course, a sincere thank you to the participants is a must at the close of the event.
Step 8. Follow up with email, newspaper classified, or some type of public thank you for the participants and business donations. You will be setting the foundation for your next event. Keep the contact info from all participants for the next years event. You will create a list of dedicated supporters of your cause.
A follow up on the auctioneer. Choose this representative carefully. They are your face to the charity world. There should never be a time for improper language, drinking, or sloppy appearance. Whereas a tuxedo may not be appropriate for all events, this person should always be dressed at least as well as the participants. Outside of a themed dress code (which I have already voiced my opinion of) long slacks, dress shirts, and usually ties are preferred for the men. Typical business attire for the ladies.
Hopefully you are sure of your choice. Even so, I am never offended, and even prefer to have a member or representative of the cause handle all money and funds. I suggest you adhere to this policy with all auctioneers and any other fundraising companies you deal with. I stick with the old “a pound of prevention….” school of thought. Our firm uses a simple advance fee for all events. All funds realized at the event are belonging to the worthy cause for costs and retention.
Properly conducted, an auction is the most exciting and well received method of fundraising you will participate in.
Dave McCormack graduated from the Continental School of Auctioneering of Mankato, Minnesota in 1992. He has conducted hundreds of auctions, selling everything from picture frames to airplanes. He is on the lead staff with ULTIMATE AUCTIONEERS of Las Vegas, Nevada. He can be reached by emailing to dave@ultimateauctioneers.com or through the website http://www.ultimateauctioneers.com
Dave McCormack, Auctioneer
Ultimate Auctioneers
Las Vegas, Nevada
http://www.ultimateauctioneers.com
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