Auction Success in a Down Economy

By Kathy KingstonJan 13, 2009

“We can’t direct the wind, but we can adjust the sails.” This mariner’s maxim reminds fundraisers to continually adapt in the face of unpredictable conditions.

In this challenging economy, now more than ever, it's vital to utilize proven best practices, new technology and fresh ideas to maximize fundraising auction efforts.

Here’s the good news: Nonprofit organizations are achieving auction success today by charting their courses on things that they can control to reverse the trends that many benefit auctions are experiencing due to the tough economy. Luckily, most fundraising auctions have many areas that are not yet optimized for maximum results. In other words, by working smarter, you can keep your auction proceeds strong.

To navigate economic challenges and raise more auction profit, set a course on these four critical directions.

1. Focus on your mission
The most important aspect of a fundraising auction is making sure all your guests understand exactly where the money raised is going and how much will go to support your cause.

As fundraising consultant Sharon Danosky, president of Danosky & Associates, said during a recent workshop, "People do not give to needy organizations; they give to lofty causes that can make a difference."

First and foremost, brand your mission. With a captive audience for the entire evening, ensure that everyone understands exactly how you help your clients and your community.

The key is to be explicit about your cause in every auction communication and promotion: mailings, newsletters, save-the-date cards, invitations, catalogs and even auction forms. On auction night, place banners and photos that showcase your programs and services all around the auction venue and stage.

Place informative table tents on the dinner tables and in between each silent auction item. Showcase how you are making a difference and how your supporters are part of the solution.

2. Deepen relationships — cultivate!

In addition to raising money, benefit auctions provide an extraordinary platform for friendraising, too. Remember, people give to people for causes they care about. So make it easy for your supporters to bid higher.

A nonprofit auction provides a momentous opportunity to deepen relationships with guests, sponsors, members, boards of directors, trustees, prospective donors and, yes, volunteers, too.

Here are a few cultivation ideas for your next auction:
Several weeks prior to the event, hold a preauction reception where you and your board members can personally meet major donors, sponsors and prospective VIP guests, highlight your cause, and preview key auction items.

During the silent auction, ask your board and auction committee members to personally greet five guests they do not know and welcome them to the auction. Empower your supporters with a personal connection; reach out to make sure they understand how their contributions will benefit your clients and your community.

Approach the auction as a cultivation event and you will ensure that your auction will be a catalyst for future giving, such as your annual appeal, major gifts, planned giving and capital campaigns. By deepening relationships with auction supporters, you invite investment and involvement far beyond auction night.


3 Ask!
And do not stop asking; be unabashedly explicit about raising money and where you need the funds. In many cases the economy has had incredibly challenging effects on the people you serve. Now is the time to communicate how much your donors' investments will positively affect your cause.

Because of the tough economy, it’s crucial to tell donors that you need their support now more than ever. Be specific in explaining how your organization is making a difference and how donors are part of the solution.

Make sure every single donor in your database knows what you are doing and why his or her involvement is so critical to your continued success.

4. Embrace best practices.
This is no time for your auction to be an amateur event. Stack the deck in your favor by employing benefit auction best practices such as focusing on audience development to increase the level of guests who have the means and influence to bid higher to support your cause; soliciting premium items that your guests really want; designing your auction with momentum and exciting timing; and using the latest in online auctions and benefit auction technology.

Now, more than ever, a professional auctioneer who specializes in benefit auctions will maximize your fundraising efforts and create an entertaining, successful evening that takes the risk out of fundraising.



So chart your course and deeply explore each of these four strategic directions. By branding your mission, deepening personal connections with your auction guests, explicitly asking for investment in your cause and using auction best practices, you can have a record-breaking fundraising auction in any economy.

Kathy Kingston is president of the Hampton, N.H.-based fundraising auctions business Kingston Auction Company

What a show!!

Rowlan,

WOW! Is all I can say. Everyone enjoyed themselves so much. You made our event fun and enjoyable. We will definitely be booking you for next year. You and your crew have an amazing pizzazz. I heard that you were the best auctioneer and you have proven that to be true. Thank you so much for helping make our auction a huge success.

…Tamara P. Phoenix AZ.

Event Planning in Phoenix

Benefit Auctioneer

Fundraising Tips: Do’s and Don’ts in a Troubled Economy

(Sept. 22, 2008) Greeted every morning with news of falling stocks and debates on whether the U.S. economy is in recession, charitable spending right now is likely not on the top of many donors’ priorities—a daunting thought for fundraisers looking for strong fourth-quarter income.
“This is a big enough ripple that major donors are looking around and asking themselves where this ends,” said Melissa Berman, president and CEO of Rockefeller Philanthropy Advisors, a New York firm that counsels donors on charitable giving. “And as the financial crisis bleeds onto Main Street, ordinary folks are feeling less comfortable donating money.”
In what will likely be an uphill battle, fundraisers in the final months of 2008 say they are not making drastic changes, but rather going back to basics and focusing on need.
“Donors may not give as quickly or as readily, so you need to make a really compelling case,” says Brian Bonde, ACFRE, president of Children’s Care Hospital Foundation. Bonde advises nonprofits not to back down on marketing; instead redouble the effort. “If there is any doubt of real need, the donor may not give right now. This is not going to work if you are doing things the way you do them in better times. In tough times, we really need to communicate the hurt.”
“It’s like a football team. When you’re down, focus on fundamentals,” Bonde continues. “Go out and talk to your donors. Try to identify people who can be opinion leaders to the rest of the constituency—create a bandwagon effect. Prepare your boards for what may be the worst and try to make it the best.”
Last Quarter Critical
How important is the last quarter of each year for fundraising? According to AFP’s Holiday Giving Survey, conducted in December 2007, more than 40 percent of charities raise on average between one-third and one-half of their entire annual contributions from October through December. In addition, almost three in 10 charities raise more than 50 percent of their annual contributions during that time. Nearly two in 10 respondents receive more than 40 percent of their annual contributions in the month of December alone.
Despite the urgency of the situation, members agree that keeping the general program moving forward, focusing on the bigger picture and NOT panicking are critical to success.
“Look at your donors case-by-case, some are being hit hard by the economy, some are doing okay,” advises Matthew Haag, senior director of major gifts and regional programs at the University of Rochester. “And with all your donors and prospects—don’t stop communicating. Now is an opportunity to show that you are interested in them beyond the financial, because you know some just don’t have it to give right now. Don’t lose sight of the long-term relationship you are building.”
As for what not to do, Bonde says fundraisers should not move away from long-range strategies and long-term cultivation in order to fulfill annual goals.
On his blog, The Fundraising Coach, Marc Pitman writes that the three deadliest mistakes a fundraiser can make in a bad economy are to spend less on fundraising, become pessimistic and apologize when asking for money.
“Timidity is a sure-fire way to not raise money,” Pitman says. “We need to continue getting out from behind our desks and inviting donors to give.” It is important to show that you are aware that these are tough times, he adds. “But there’s nothing compassionate about not asking.”
How is your organization faring during these times? What are you doing to reach your fundraising goal through the last quarter of this year? Send Rowlan your thoughts. Info@RowlanHill.com