Fundraising Auction Lessons Learned in 2009

Lessons Learned 2010

It really does not matter what business you are in. When you stop learning, when you say" I have seen it all" when you decide you can't be surprised you start down the road to disaster.

The end of the Fall Auction season means the end of an Auction year and it always invites reflection and evaluation. 2009 is no different. So I thought I would take a moment and post some lessons that Sherri and I have learned from working with Non-Profits this year( in no particular order) in the Charity Auction arena. Maybe you will find some of this useful. We hope so:

1. Spend the income not the budget. We worked with a client that has a huge Gala of close to 1000 attendees normally. They knew early on in the planning stages that attendance would be off at least 20% maybe more. They reacted accordingly, booking a smaller ballroom, selecting a less extravagant menu and cutting costs of non-income producing line items in their budget. They realized less income but the bottom line was not affected as negatively as it might have been had they not paid attention and "Hoped for the best".

2. The Event is worth having. Two well known non-profits in our area cancelled their Galas in 2009 saying, " Now is not the time to be extravagant and have a big party." Already they have realized the well-meaning mistake in this thinking. Many of the the individuals that normally would have paid $500 per ticket to attend did not merely send in the money when asked and now, as they search for sponsors for 2010 or try to form a Gala Comittee the inevitable question is asked. " Are you going to have this event?"
In hindsight a wiser descision would have been to have the event but scaled back from a "Black Tie" to a "Boots & Beer"type of gathering. Auction items could be more "Hunts" or "Experiences" and less Diamond Tarias and Cars.

3. The After-Action meeting is key. Sherri and I are almost evangelical about this. The temptation is always to sigh a sigh of relief when a big event is over and then move on to the next grant presentation or Golf Tournament. This does a great disservice to your volunteers and gala chairs for the coming year. A thoughtful after action meeting within 10 days of the event is a chance to honestly and candidly discuss the strengths and weaknesses and reccomend changes for the coming year. If the income your event produces is so vital to the organizations mission when why not invest the few extra hours to conduct a "Post Mortem"? Schedule this meeting before the event even happens so everyone knows about it and make attendance as cumpulsory as you can when working with volunteers.

4. Be Proactive and don't assume. If were concerned about how the deepening financial crisis might have affected your 2009 year check out the example of the Helen Hayes Awards, a nonprofit organization that supports Washington Theater. They sent a letter the week before their October event to supporters who had not yet responded to the invitation. It urged recipients to engage in “wholesale therapy” at the auction by bidding on exotic vacations and experiences that would build lifelong memories for their children.
A Russian Dream package that included two business-class tickets to Moscow, an eight-day luxury cruise on the Volga River and three nights at a five-star hotel in St. Petersburg, went for $10,000 at the live auction. A good deal for the bidders and a good item for the organization since it was donated outright.
They did not listen to the nay-sayers or the few "Grinches" ( Excuse the Christmas references) who probably said no one would come and no one would bid on these high dollar items.

5. Know your Market and watch the news. We were selling trips to Cancun and Mexico City for top dollar in January. Then came H1N1. As you would expect the bidding stopped. We advised several of our clients to change the trips to places like Denver, Aspen and even Vermont. Those experiences continued to sell. Those are popular destinations for Texans since the geography is very different from what people can find here. Fur coats never sell to well here as its not to cold that often and (in Austin at least) the political sensitivities can be problematic. If you are using a trained professional Charity Benefit Auctioneer who is serving as a consultant to your committee as well as a bid caller they can help you steer clear of problem items.

6. Don't be Shy, Make your Case. The need for services of organizations like Food Pantries, The Boys and Girls Clubs, or The Austin Childrens Shelter do not diminish during tough economic times, they increase. Don't be shy about making your case in the media and at your event. You can do this without sounding like chicken little. Gently remind people that they get to go home to a warm bed, a full pantry and to a loving family. There are many people who tonight do not have that priviledge. Sherri and I saw "The Blind Side" recently. In the movie Sandra Bullocks Character is speaking to Michael. She is telling him about his new room and its furniture and he says " I never had one before" She asks of he means a room of his own, and he says, "No... a Bed." Tell the story. Calmly and with emotion but tell it.


7. Technology is here, Use it. Utilize the online component to your Charity Auction.
A real estate agent in California recently bid $20,000 at a local school district auction for a luxury bathroom renovation. She figures she bought goods and services worth double that amount. The package included an architect and contractor, a custom-made vanity and a stone slab to top it, most of the tile and a $1,500 store credit on a shower door.
She said in an interview that she was “not in a financial position” to make a $20,000 donation to the school district without getting anything in return.
To make sure she was the successful bidder she paid the “get it now price” at the school’s online auction. This particular Auction was hosted by Bidding for Good, part of cMarket, a five-year-old company in Cambridge, Mass., that supplies charities with the technology to run auctions and other online sales, in exchange for 3 to 9 percent of the proceeds.
Charities can choose to limit access to their own supporters or, as most do, open the auction to other bidders, who can shop by charity or by product category at biddingforgood.com.
Don't forget Auction Software from suppliers like AuctionPay and Auction Tracker. If you are still using excel spreadsheets to track your ticket sales, Auction items and "Paddles Up" donations consider scheduling an appointment with representatives from an Auction Software company or more than one. Auction Software makes the whole event more efficient, easier for volunteers and ultimately more successful.

8. Care and Feeding of Volunteers.
When an organization hires people to work for them, they pay these individuals a fair wage, and have the right to expect a fair days work for their money. If they do not deliver they can be sent on there way with little ceremony.
But it can be different in the Fundraising Auction field. Many Organizations are required to rely on the volunteers selected by the Organization to be their ring crew, clerks, checkout and more. These valuable volunteers reflect directly on the Charity. One of the most important aspects of the gala auction is the staffing. Besides the planning committee, a staff of ring-workers, clerks, bid assistants, check-out helpers and general runners are all needed. These are most often the volunteers referred to above. Many organizations and volunteer committee chairs make the mistake of treating a volunteer worker like an employee. Of course volunteers have committed to do a job and they need to be held accountable, but it is worth a few minutes to review how you treat these valuable individuals.
Are they treating these volunteers like paid employees?
How are they recognizing them?
How sure are they that the person will help next year?
How much would it cost them to hire replacements?
How often do they say "Thank you?"
A little consideration goes a long way in helping you hold on to those key volunteers that make your event run smoothly and efficiently year after year.


9. Don't Whine, Sell Wine! One of the most successful Auctions we participated in this year was a Wine Auction for a charity that provides life saving heart surgery to children from developing countries.
46 lots of Fine wine sold for a total of $98,556. Thats an average of $2,142 per lot. Some of these lots were only worth $500-$700 but with a good sommelier to introduce each lot and a good Auction team to solicit the bids they realized 300% of value on some lots. Wine Auctions are becoming more and more popular.
One of the more popular items is a custom barrell of wine. Consider one of the newest wine experience in the North Fork's Wine Country. Bella Vita Vineyard provides the equipment, knowledge and premium grapes to help members produce a fine local wine. Dedicated in giving members a complete education in the vine to wine process. Resulting in a custom barrel of wine to share with family and friends. Membership is about $3500 and can sell at Auction for twice or three times that. Could your local winery offer this?

Sherri and I had a great time, conducting over 30 Auctions this year for great organizations in Dallas Austin and Houston. We learned a lot and will continue to learn with each Auction we conduct. I would offer one final peice of advice in warning you to beware of the Vendor of any kind that says, " We have seen it all" If you are not learning your forgetting.

Have a great Holiday!!!

The Centerpeice Auction

Recently we were working with a client on an event. They had not even planned on having a Live Auction as part of their Gala and had decided about 6 weeks out to add the Live Auction component to the party.

Like a lot of Non-Profits they were struggling with procurement of items, placement and all the usual logistical issues that come with putting on a Live Auction. They had a good number of items but needed a few more to bracket their "Paddles Up" effort ( see earlier blogs on this method of generating revenue) so Sherri and I suggested a centerpeice Auction. It occured to me how many people do not know about this addition to your event strategy.

Are you creating unique centerpeices for your tables each year? These can be created by volunteers and can be quite beautiful and ornate. Many times they are very creative works of art standing alone. But what happens to them when the event is over? Are they taken home by someone at the table? Left for your volunteers to deal with? Put into a closet until the next "Cleaning Day" at your office? You can sell these and generate additonal revenue BUT if you do it correctly you can add another element of fun and frovolity to your Auction!

This is always the first "Item" in the Live Auction. Have your Auctioneer announce that he needs help tonight and then ask each table to appoint an Auctioneer at the table. Have that person stand up.
Then give everyone 30 seconds to sell that centerpeice for as much as they can. Your Auctioneer should say" I want to hear your best bid calling" or words to that effect. 30 seconds later have the Auctioneer call out "Done!"

Now this is the most entertaining part:
The Auctioneer asks each "Table Auctioneer" to remain standing if they sold their centerpeice for more than $50. Then he asks them to remain standing if they have sold there centerpeice for more than $100, then $150 and so on.

Soon there is only one person standing and that person is announced as the "Champion Auctioneer" of the evening. The Table Auctioneers then collect the checks!

Now lets do some math. 360 people at your gala is about 45 tables. 45 tables with each centerpeice selling for an average of $65 is $2,925.00 If dedicated volunteers made these centerpeices and you have maybe $7 worth of materials in each centerpeice that $315. You have now generated $2610 and you have not added a single item to your Auction! You have just sold something you had out there each year.

Caution! You need an experienced Charity Benefit Auctioneer to facilitate this method. A well meaning board member or volunteer can get confused, let tables not have Auctioneers or forget to tell the "Table Auctioneers" to collect the money!!

Good Luck! Drop us a note and tell us how it goes!!