Blog — Stellar Fundraising Auctions

charity auction

Out on a Limb

One of the challenges of fundraising is knowing when to take a risk and when to play it safe. In the fund-a-need, for example, the longstanding wisdom was to start at the highest level where you have a known donor waiting to give.

 Over time, however, that thinking has changed. Now it is common practice to acknowledge the first donor, and to fish for contributions at higher levels. If you choose to go out on a limb and see if anyone wants to donate a higher amount, follow these guidelines.

 Never go out on a limb higher than one level above your known first donation. It is OK to go out on a limb and get no donations at one level, as long as we can immediately drop to a level where there are known donors. As soon as you have two or three levels of crickets, your fund-a-need is doomed. What we are doing onstage is emotion management, and if the crowd starts to feel like this is a failure, it ripples.

 

Always check with your pre-committed donor to make sure they are on board with the plan. Most donors will be supportive of the idea of trying to find someone to give more. Occasionally, however, a lead donor really wants to be the lead donor and will be offended if you try to go over their head.

Be sure you can justify the ask. If you have a lead donor at $10,000 and want to go out on a limb at $25,000 you better need the extra money, and be able to explain to the crowd in real-time why.

Just because someone has wealth does not mean they are committed to giving it to you, even if they are attending your event. Cultivate donors, engage them in conversations, and empower them to support your cause. Whatever you do, don’t make gambling part of your donor development strategy, and never confuse capacity with commitment. And if you choose to go out on a limb, remember that It’s a valid strategy, as long as you know you won’t fall too far if it breaks.

Decor: Dream or Nightmare?

Décor is an important part of most fundraising events and has the potential to have a major impact on how much money you raise. Décor can transform a venue into a different place, transport attendees to a new world, and help tell the tale of your mission. Décor can also be a hinderance, actively work against your fundraising, and run roughshod on your budget.

We have seen some incredible décor over the years. For example, every February, the Boys and Girls Club of Sonoma Valley transforms their gymnasium into a spectacular setting for a high-end gala, utilizing a combination of drape and lighting. Looking at photos of the event, you would never guess it was in a gym. But you never have to look too far to remember where you are, and why you are there.

The Sweetheart Gala always takes place in the Boys and Girls Club’s gym, but it doesn’t feel that way.

Save the Redwoods League consistently does an amazing job of utilizing décor to communicate their mission at their galas. Whether it is in a tent on Union Square or a boxy warehouse space in the Presidio, they always manage to create a mood that feels connected to the forest, through lights, visuals, and use of live plants and trees.

Décor doesn’t have to be over-the-top to serve a valuable purpose. We’ve seen many events utilize retractable banner stands to communicate their mission and message and empower attendees to get in the frame of mind of supporting the cause.

The one place we’ve seen décor go most awry is at the tables, specifically, in the center of them. Centerpieces have the potential to become a massive hindrance for us as auctioneers. Tall centerpieces can make it hard to see bidders, and actively hinder our ability to do our jobs. It can not be overstated: Tall centerpieces make it harder for us to see the crowd and for the crowd to see us onstage. It creates a sense of separation in the room – in a bad way.

These centerpieces were so tall, Greg opted to do the auction from the floor instead of the stage.

We won’t play at being arbiters of taste, but we will say that when planning your décor, do it with intention. If the goal is to create an atmosphere of giving, how can the décor help serve that purpose? If the theme is important to your crowd, how can you meet their expectations while staying true to the fundraising?

Lighting is a cost-effective method of transforming a space, and lighting can also be used to change mood during an event. Remote-controlled, battery-powered LED lights can change color with the click of a button and be synchronized to do so throughout the room at the same time. Changing the color of the lights washing the stage between speakers can make for dramatic entrances and exits, and help to focus the crowd’s attention.

Be creative. Utilize modern technology. Make your event memorable and profitable. The one thing you should not do is create centerpieces that block sightlines. Seriously.

Auction Lot Idea: First in Line at Valet

We love to open an auction with a “warm-up” lot that has a low opening bid, but hopefully is extremely popular and sets the tone for the rest of the auction. These lots are fun, readily accessible, easy to describe, and usually offer some sort of instant gratification.

There are many variations on this theme, usually involving food or drink. We often sell opening lots of a round of “special” drinks served immediately to the winning bidder’s table, a “better dessert” for the winning bidder’s table, or special attention from the waitstaff and bartenders.

If your event has valet parking, you have an easy warm-up lot just waiting for you. At most events with valet parking, there is a line of people waiting for their cars at the end of night – especially larger events of 500 people or more. On more than one occasion we have offered the opportunity to have the winning bidder’s car moved to the front of the valet line as an auction lot.

The logistics are simple: as soon as a winner is determined, a staff person gets the winner’s valet ticket and has the winner’s car pulled around so it is waiting for them when they are ready to leave. All it requires is an agreement with the valet service provider to maintain a lone parking spot at the front for when the time comes to get the winning bidder’s car.

Market it in the auction catalog and slideshow, give it a description that sells the story. I’ve even seen some extra details added on, like a goodie bag to take home waiting on the front seat for you. The point is to keep it simple and make it fun. The results always align with what we’d hope for an introductory lot like this. Worst case scenario, we raise about $500 and do a great job of warming up the crowd. Best case scenario, two bidders go at it and we’re off to the four- or five-digit races on our first lot.

If you have other ideas for great warm-up lots, post them in the comments below, or drop us a line.

 

 

Do Your Homework on Consignment Packages

Consignment companies serve a valuable role in helping round out live auctions. If your auction is in need of an exciting travel package, or something specific that you have been unable to get donated, purchasing an auction lot from a consignment company is a viable option. However, if you are going to purchase a consignment package, it is important to follow a few simple guidelines.

Only purchase from reputable consignment companies that specialize in working with non-profit auctions. Any consignment company worth dealing with will be able to provide you with references to happy clients, auctions that have sold their packages, and bidders who have taken their trips. If you are going to trust the care and handling of your bidders to a company, their partners, or representatives, you need to know they will be treated well.

Sometimes you need a tropical paradise in your live auction, and have to pay to get it.

The financial goal should be at least double your investment. If a consignment package is going to cost $1,500, your target sale price should be at least $3,000. This means you must know your audience, their desires, and their potential budget. Don’t base the decision to purchase a consignment package on what the consignment company says it is worth or on how well it has performed at other auctions.

Shop around and do your homework. Once you find a package that seems like a fit, ask the consigner if they are the provider or if they are a reseller. If they are a reseller, see if you can go directly to the company that provides the package. There are many resellers out there that simply take other consignment company’s packages, mark them up significantly, and then do their best to market them.

A client recently came to me with a consignment package that seemed familiar at first glance, except it was way more expensive than I remembered. Once I looked a little deeper, I realized it was a consignment package from a different company being offered at two times normal cost. What should have cost my client $1,800 was being “offered” at $3,600. As soon as we figured this out, my client simply switched over to the originating consignment company and purchased the package from them.

Consignment packages can be a useful tool for your live auction, raffle, last hero standing, or silent auction, but only if you do your homework, and make sure the package is going to fit your needs, and not vice versa.

Spring 2023 Wrap-up

The year is halfway over and the spring fundraising season is coming to a close. It is a good time to identify the fundraising auctions trends that have emerged, how they have impacted events, and how best to work with them to create successful event. First and foremost, we are seeing continuation of trends that started last year.

One of the most promising trends of 2023 is the younger generation stepping up and supporting charities at a high level

People are still waiting until much later in the planning process to purchase their tickets than they would have done pre-pandemic. This spring we saw a number of events come up against their deadline to confirm the catering order while attendees were still continuing to purchase tickets.

Check with your event venue and/or caterer to see how they’ve been addressing this issue. Unless your event is known for selling out quickly, be prepared to work to motivate ticket buyers as you come down the home stretch. And most importantly, know that this behavior is the norm these days.

Another part of the new normal is the volume of crowds remains louder than ever. Setting aside all attempts to analyze why this is true, the simple fact is once people are at an event together, they tend to be extremely loud. Crowds that are usually staid or reserved are loud, and crowds that are known for being loud are cacophonous.

Work with your A/V partner to ensure the sound system you have in place is designed to address this. Specifically, you need more coverage with more power – not just more power (think “auction surround sound”). Craft your timeline to ensure you are giving your crowd the time they need to blow off steam. Fine-tune your program so that everything that happens onstage is meaningful and engaging.

Auctions are getting shorter. When I first started doing fundraising auctions in 2004, the average auction length was 25 - 30 lots. That number has shrunk to about 12 lots, with many events strategically opting to do a fund-a-need only. Shorter auctions means fewer lots to generate the money, obviously, but it does not mean you have to restrict your auction to fewer bidders.

Buy-in-lots have surged post-pandemic and continue to be extremely popular, as I documented in an earlier blog post. As events opt to hold shorter and shorter auctions, buy-ins have become an integral way to engage more bidders *and* raise more money.

Another trend this year is the rise of the “sponsor a spot” auction lot. Similar to a buy-in, but instead of securing an opportunity for oneself, we ask bidders to sponsor beneficiaries of the event to participate in an experience (read a more detailed blog post here).

Crowds are also getting younger, and I’m not just saying that because I’m feeling older these days. We are definitely seeing a new demographic emerge at fundraising events, and the late 30’s to early 40’s set is starting to have an impact.This means you have to keep your program fresh and utilize forms of marketing that meet this market where it lives and plays. It also means that you need to develop a couple of fun and creative auction lots that appeal to this demographic – buy-ins usually fit the bill.

We are seeing events trend upwards again. Most events – not all, but most – are making more money than last year. Many are setting new records, after setting new records last year. This is partially the work of expectation management, of crowds expecting to raise more money each year. But it is also the work of development teams, boards, and committees who do a great job of setting individual attendees’ expectations for their participation in the event.

One disturbing trend we’ve seen emerge this year is fake bids: people making a bid and then either denying they made the bid or outright refusing to pay. This has happened at numerous events this spring, including at some of our biggest events. At one event, a bidder obviously and repeatedly bid on a lot until the lot sold to them for $36,000 – at which point they simply refused to acknowledge their winning bid and insisted they had not been bidding. Utilizing a payment processing system that enables you to tie bidder numbers directly to credit cards will help prevent this, but it will not make it completely go away.

Another great solution for this is to utilize professional bid spotters. You may already pay a premium for your fundraising auctioneer, but the additional cost of professional bid spotters will more than pay for itself, especially if you have a crowd of more than 350 people. Professional spotters help make the auction livelier and more engaging for the whole crowd, but especially those last few rows of tables.

Without professional spotters, we often do not know a bid was false until the lot has already been sold to that false bid. Then we have to re-open the lot, find the last bidder, re-engage them, and so on. Professional bid spotters can help verify bidder behavior and alert the auctioneer to false bids before they become problematic. They can directly engage with bidders and confirm a bidder’s intent (or lack thereof) while the auctioneer is still actively selling an auction lot. As few as one or two professionals “on the ground” in an auction can make everything go more smoothly.

To summarize: what we are seeing so far in 2023 are crowds that wait longer to buy their tickets, are louder than ever when they get to the event, and spend more in support of their chosen charities than ever before. These crowds are getting younger and require both programming and auction lots that map to their demographic. If your event has more than 350 attendees, consider using professional bid spotters to help make your event more successful.

The Most Exciting Auction Lots of 2022

After two years of pandemic, 2022 marked an almost complete return to in-person fundraising, and the re-emergence of live auction “irrational philanthropy.” Crowds were excited to be back in the room together, and auction committees pulled out all the stops to put together creative and enticing auction lots, making it the perfect time to bring back our annual tradition of recapping the most exciting auction lots of the year.

The types of lots that succeeded had varied greatly through the first two years of the pandemic. This year, trips were back in full force, as people started traveling again and pent-up demand for vacations revealed itself in bidding behavior. In-person entertainment opportunities also reclaimed a top spot in auction popularity and profitability. People really want to be social, engage and interact. It follows that buy-in lots (also known as “buy-a-spots,” “count me ins” or “pay to play parties”) have emerged as one of the most popular and exciting live auction lots in 2022.

Get creative! The most exciting auction lots don’t have to be expensive, they just need to offer exclusive access to experiences, relationships or both.

This year’s list of exciting auction lots includes a sampling of each of the above, as well as some experiences and relationship-based lots. For the purposes of this list, “exciting” is an arbitrary assignation focused on each lot’s uniqueness, creativity, and the buzz generated at the event. Sale price impacts the decision, but only relative to how other lots sold at the same event. I have, however, included some opening bids and final sale prices for the very first time in this series.

Knowing where bidding started and where it ended up can help understand how exciting the bidding was for some lots. The single most exciting and memorable auction lot of 2022 was a lot that underscores how sometimes it is not the content of the lot, but the intentions of the bidders that makes for an exciting auction.

But comparing pricing between events can become a dangerous, and ultimately unhealthy, practice. Don’t get hung up on how much other events make, and instead utilize this list to create fun and exciting lots of your own! The goal of this list is to help inspire creativity (and profitability!) at your fundraising auction.

And with no further preamble, here are the most exciting fundraising auction lots of 2022 (click on the + symbol to the right to expand each lot’s description):

I’ve included that final “bonus lot” because it was, quite honestly, the most exciting lot I sold all year. Sometimes it isn’t the value of the lot, but the commitment of the bidders that creates excitement, and it serves as a good reminder that it isn’t just what you have to sell, but who you have to bid on it. So create exciting auction lots, and bring in the bidders to make that excitement happen.

How to Knock Your Next Fundraising Auction Out of the Park

I was recently contacted by Anthony Wilson, founder of Groupfinity, about participating in his podcast series. Groupfinity is a new resource for volunteers and volunteer organizations, committed to providing support and tools for success.

Anthony contacted me because he had served on a number of fundraising auction committees, but had never worked with a professional fundraising auctioneer and consultant before. He had a lot of questions about best practices, and once we got rolling our conversation was, as you can imagine, extensive. I ended up providing him with enough material for two podcasts. We covered myriad topics, from how many volunteers it takes to make an auction successful, to the goals of fundraising auctions, to how to leverage your board to make your next fundraising auction successful.

In short, it was a distillation of my entire philosophy down to an hour of podcast. You can find the entire podcast here, and the timestamps below outline the entire podcast.

[2:48] How many people do you have who are committed to volunteer to make the auction successful
[3:08] For an auction to be successful you have to have a couple of key components taken care of
[3:52] Get people you know have capacity and are prepared to support your event/organization
[4:12] Every event is made by 15 bidders
[4:42] You need people who have connections to invite your supporters
[5:02] The goals of a fundraising auction is three fold 1 Raise money 2 Tell your story 3 Engage new supporters
[6:47] For an event chair, you’ll spend 700 hours over 9 months
[7:39] If you’re looking for someone to chair your fundraising auction, find the busiest person you know
[9:58] In putting together a fundraising auction, it has to be FUN and it has to be FUNdraising
[10:28] Don’t throw a big party and then hit them over the head with an auction when they get there
[15:14] Fund a Need
[16:02] Keys to making your Fund a Need successful
[19:15] 7 Keys to a Fund a Need
[20:35] Fundraising is conversation with your community
[21:00] Talk to your donors to see what they’re interested in supporting
[22:20] We need somebody to get the ball rolling
[23:33] An auction breaks into 3 groups of people
[25:38] Your board needs to do 3 things to make the auction successful
[27:58] What item can I count on you to help bid up?
[28:39] Peer pressure drives donations
[28:56] Fundraising auctions are a place for people to make donations in a public setting

How to: Sequence Your Live Auction

Once you have successfully solicited the lots for your live auction, the next big challenge is deciding on a sequence for them. The order in which you sell your auction items is equally as important as the items you are selling.

Every decision you make has the potential to earn or cost you money. Lead or end with the wrong lot, and you will not realize the full potential of those lots. Put too many similar items in a row, and you run the risk of alienating the bidders who aren’t interested in that type of lot. Lump all of your highest-valued items together, and one of those items is going to underperform.

The right sequence creates an auction that flows with a sense of narrative, that builds to high points, and embraces downbeats. Most importantly, the right sequence ensures that you make the most money with the items your team has worked so hard to secure.

We could spend hours discussing this topic, and sometimes spend hours working on the sequence for one of our client’s auctions. There is too much information to try and convey in this single blog post. So we’ll cover some easy to implement points.

An auction is like a locomotive: it takes time to build momentum

An auction is like a locomotive: it takes time to build momentum

Do not lead with your most expensive lot

Do not kick off your auction with your biggest lot, or even your third or fifth most expensive lot. The first lot in any fundraising auction is challenged. The crowd hasn’t settled down and people haven’t warmed up to the process yet. You need to build momentum, like accelerating a steam locomotive. Your first lot should be something that has a low retail value, but hopefully a high perceptual value. Or, at the very least, is one of your lower-end lots that is appealing, but won’t be disappointing no matter what it sells for.

Do not end with your most expensive lot

While it can be exciting to end an auction with a really expensive lot that raises more money than anything else at your auction, I guarantee that if you do so you are costing yourself money.  The person who comes in second on your most expensive lot is trying to give you money. More money than anyone else in the room. If the most expensive lot is last, they have no more opportunities to give you that money.

But if there are more lots after the most expensive lot, that second-place bidder will have opportunities to spend more. More times than not, they will wind up bidding over value on a less expensive lot. I observed one bidder stop bidding at $10,000 on an item, only to come back a few lots later and spend $6,000 on a lot that was valued $4,000. To top it off, she turned to her table and said, “I just saved $4,000!”

Give your donors as many opportunities to give you as much money as possible.

 Separate types of lots

Unless your auction is comprised solely of trips, do not place all the trips in a row. Spreading them out in your auction will ensure that the people who want the trips have ample opportunities to buy them, and that the people who don’t want trips won’t be bored by a parade of trips.

Alternate values

The most successful method of ordering an auction is to build momentum, like accelerating a locomotive. Once you have momentum, you can’t expect every lot to sell at a high value. Every time something sells for a bunch of money, there is a buzz in the room that makes the next lot challenging. Embrace that buzz by alternating values, so you have mid- or low-level lots following expensive lots.

This creates a flow that embraces the natural tendencies of your crowd, and, most importantly, helps realize the full potential of the auction lots in your auction.

Lighting as decor: new technology is budget-friendly

Event design is always a balancing act between intended look and budget. Large, “blank slate” event spaces pose the most obvious challenges for décor. But even the most elegant venues often need a touch of flair to get them to better match an event’s color scheme.

Until recently, the main options for large-scale decorating were pipe and drape and large stage lights; each of had its own set of issues.

This airplane hangar is transformed into a festive party through the use of color and light.

This airplane hangar is transformed into a festive party through the use of color and light.

Pipe and drape is expensive, has height limitations, and usually comes in one color: black.

Large stage lights are limited in their flexibility. The use of filters can give you good color effects on most any reflective surface, and custom-crafted gobos enable you to cast whatever imagery you want. But these lights are large, hot, and not capable of rapid change.

In the past if you wanted to change colors for different parts of your show, you needed to rent a different light for each and every color change you want. Not a big deal if you’re talking about a small set, but if you are decorating  an airplane hangar and wanted to do two or three color changes…forget it.

Advances in lighting technology, especially LED lighting technology, have made it easier and more affordable than ever to transform a “blank slate” event space into something special. A single LED light offers every color you could ask for and you can switch between colors with the push of a button.

Many LED lights are also battery powered, eliminating the need for additional power supplies or unsightly cables running throughout the room. LEDs are also compact and powerful, making it easy to cover huge patches of real estate with each small, unobtrusive light.

Possibly best of all, the LED revolution has greatly reduced the price of lighting solutions. The next time you are designing your event décor, be sure to have a conversation with your A/V provider; they have options that can impact your event’s look and feel without impacting the budget.

Tall centerpieces hurt fundraising auctions

Everyone wants their event to look great. The challenge is to strike a balance between form and function, especially when it comes to the centerpieces.

Even though they are see-through in the middle, the paper planes on these center-pieces are obscuring the podium.

Even though they are see-through in the middle, the paper planes on these center-pieces are obscuring the podium.

As auctioneers, our ability to engage a crowd is dependent upon two things: the crowd’s ability to hear us, and our ability to see them. It isn’t just the bidder’s paddles or numbers that we need to be able to see: we need to be able to look people in the eye, because it reveals a lot about their personality. Do they want to be played with? Do they want recognition? Are they smiling? Do they look to their spouse for the go-ahead between every bid? Are they looking to see who is bidding against them?

There is a lot we need to see from the stage, all of which enables us to raise more money for you in your fundraising auction. Tall, bulky centerpieces that block the line of sight from the stage to attendees’ faces hinder fundraising. They wind up costing you money – usually much more than you paid for them – in lost auction revenue.

If I can’t see the bidder as auctioneer, it means I have to move around on the stage until I can see them. Provided I know they are there, and know that they are trying to bid. But when I’m working around tall centerpieces, I usually just get to see the paddle number, jutting out over a mass of flowers.

If a bidder feels like they aren’t being seen, they either stand up or put their paddle down. Either are sub-optimal ways to get your crowd to engage.

Short, theme-appropriate centerpieces work best. They enable the people in charge of décor to flex their creative muscles without their vision literally getting in the way of raising money. If a designer insists on doing tall centerpieces, make sure they are as transparent as possible.

When in doubt, sit facing the stage at a table and ask yourself, “Could I look the auctioneer (or any other speaker) in the eye?”  If the answer is “no” you have to decide if there is anything you can do about it that night, or if it is an issue you’ll need to address the following year.  Because our goal is to lower barriers to supporting your cause, not build them.