Why should you even have a Charity Benefit Gala? We get this question a lot and some Organizations have cancelled or done away with their Galas altogether with a rationale of saving money and resources. They even think they will be viewed in a more positive light than their peers in the non-profit community.
The Rationale normally goes something like this:
"With Online Auctions and E-mail fundraising getting so popular why should we engage in the time, trouble and expense of putting on a big Gala? We can raise the same money by taking items, putting them in an online auction and selling them. Utilizing Facebook and other E-marketing techniques we'll send out our message and generate direct support that way. People will appreciate we are being good stewards of our money and support us even more!"
This can be a very tempting rationale but it is incredibly short sighted. You may save some labor and costs one year but you will find your revenue begins to decrease in the next 5 years because you are not filling your pipeline with new prospects and supporters.
Yes galas are labor intensive and some volunteer committees will do almost anything to avoid actually asking people for money.
(I have been hearing the "Really Nice Letter' argument since 1989 when I started in Profesional Fundraising.)
Galas and Special Events are needed and are extremely valuable to your financial health both in the short term and the long term. Lets take a look at the 7 levels of financial engagement in any organization, Associates, Affiliates, Supporters, Donors, Loyal Donors, Major Donors and Planned Givers and how Special Events affect the long term.
Associates are folks who know about your Organization, have a good feeling about you but not much more. Affiliates are those individuals that cheer for you from the sidelines, identify with your goals but are not involved. You want to turn these individuals into supporters.
Supporters are those that actually contribute something. Time, Talent or Treasure, and you want all three. The Gala Auction is the perfect time to turn these individuals into supporters. I have already written extensively on the "Paddles Up" or "Fund a need" in an earlier post so I will not delve back into the details now, but with that technique and 600 attendees at your event you have turned at least
300 individuals into supporters even though they bought nothing at the Live or Silent Auction. And all 600 who attended have now been exposed to a heartfelt appeal about your mission and what you do.
Now it's time to take those supporters and move them to the next level, Donors. Donors that contribute without an event or tournament but because someone asks them, someone who they know and trust.They know your mission, and they know and trust the volunteer that is asking them. Because they attended your event.
From there some become Loyal Donors that contribute each year on a regular basis. A good way to take Donors and turn them into Loyal Donors is to ask them to help with the Gala or event, and exposing them even more to the mission and the reason funding is needed. This is an especially good technique if you want to move them to the next level, Major Donors.
Now a select group of Loyal Donors can be moved up to Major Donors. This takes time of course and relationship building but a gift of $10,000 or $20,000 annually is worth the time, don't you think?
Finally a few Major Donors become Planned Giving Donors, the top of the pyramid. Bequests, Charitable Remainder Trusts, or Endowment Gifts of $100,000 or more are substantial gifts that provide financial stability for your Organization in the long term.
You need to keep your pipeline filled with new supporters and start moving them up this pyramid of support. The Gala Auction enables current donors and supporters to bring new contacts into your sphere in a fun and exciting way.
Don't abandon it!
Questions? Call us at 512-369-3391 or visit our website at www.austinauctioneer.com
Sunday, July 18, 2010
Thursday, July 8, 2010
Profile of a Gala Chair
Profile of a Gala Chair
If you are a Development Director or Executive Director of a Non-Profit and have been around the Charity Benefit/Non-profit world for a few years, you have probably already learned the secret of real success in fundraising. It’s all about the manpower. It is no different when forming a committee for a Benefit Auction. The right people on your committee can make the difference. The right Chair can take your event to new heights and make it the “Must Attend” event of the season. But be cautious! The best thing about working with high level volunteers is that they are strong, independent, aggressive and very resourceful. The worst thing about working with high level volunteers is that they are strong, independent, aggressive and very resourceful. A clear understanding of what is expected is very important and such things can not usually be communicated verbally.
Selecting the right Gala Chair is vital. An Executive director once said to me,
”A key Volunteer should be one of 4 D’s. A Doer, a door opener, a donor, or departed!”.
An organization once asked me what kind of person makes the best chair. I thought about it and prepared this profile/job description for them. It is designed to be shared with a prospect when recruiting them to make sure they understand what is expected of them. Although this is designed for an Auction/Gala chair with a few changes it could be used for a Sporting Clays or Golf Tournament Chair.
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Job Description- Gala Chair
Statement of Purpose of the Organization- Sell your Organization.Something Like:
“The Boy Scouts of America has earned the reputation over the years of being one of the premier charitable organizations in the traditional annual giving campaign arena.” Or “The Greater Denver Chamber of Commerce is the driving force behind the economic vitality and quality of life within the Central Colorado Region”
Attributes of the Chairman ( This is where you flatter your prospect. When they read this they say to themselves, “Me? I’m this kind of person? Well of course I am!” )
The Gala Chair is an individual of affluence and influence in the community. He/She must be well respected in the community and goal oriented. They should have an affinity for (Scouting/The Chamber/ The Shelter) and the values we promote.
The Chair should be someone who has a certain amount of control over their own schedule and someone who can hold others accountable in a positive manner. Above all the Chair MUST be an individual who can and will take ownership of the event and be responsible for the failure or success of the endeavor.
Objective of the Chairman ( Do not be shy here. State your goals and objectives. If they say no to this kind of specific goal they may not be the right person. )
To take ownership of the Gala/Event and successfully recruit and train the necessary volunteers to adequately identify and evaluate the giving ability of potential donors and guests, and to tell our story and share our needs to these potential donors and guests, so that we raise $ 500,000 of the overall $1,300,000 Finance objective by May 31, 2010.
Responsibilities ( Again, be specific. Let them know EXACTLY whats expected. This will help later, trust us!)
A. Accepts the responsibility of assisting with the recruiting of volunteers and promoting the 2010 Gala and the achievement of the goal of $500,000 and the recruitment of top level community Leaders to fill the following positions:
1. Ticket Sales Chair
2. Table Sponsorship Chair
3. Live Auction Chair
4. Silent Auction Chair
5. Entertainment and Logistics Chair
B. Keeps the team on schedule by setting expectations and providing coaching for team when needed.
C. Makes a substantial contribution to the Gala
D. Keeps volunteers motivated and committed to success.
E. Hosts a regular report meeting with key gala leadership.
F. Empowers Committee members to be successful and lend assistance when needed
Notice how it is specific. How much money to be raised? By when? How many positions to be recruited? What kind of positions?
This kind of written job description can save you a lot of headaches. If a Gala chair thinks the Auction/Gala will be a big party and all they have to do is be a “Party Planner” you have lost the opportunity to have a reliable partner and you have potentially left tens of thousands of dollars on the table.
Save yourself time and trouble. Recruit the right Chair at the start.
If you are a Development Director or Executive Director of a Non-Profit and have been around the Charity Benefit/Non-profit world for a few years, you have probably already learned the secret of real success in fundraising. It’s all about the manpower. It is no different when forming a committee for a Benefit Auction. The right people on your committee can make the difference. The right Chair can take your event to new heights and make it the “Must Attend” event of the season. But be cautious! The best thing about working with high level volunteers is that they are strong, independent, aggressive and very resourceful. The worst thing about working with high level volunteers is that they are strong, independent, aggressive and very resourceful. A clear understanding of what is expected is very important and such things can not usually be communicated verbally.
Selecting the right Gala Chair is vital. An Executive director once said to me,
”A key Volunteer should be one of 4 D’s. A Doer, a door opener, a donor, or departed!”.
An organization once asked me what kind of person makes the best chair. I thought about it and prepared this profile/job description for them. It is designed to be shared with a prospect when recruiting them to make sure they understand what is expected of them. Although this is designed for an Auction/Gala chair with a few changes it could be used for a Sporting Clays or Golf Tournament Chair.
-----------------------------------------------------------------------------------------------------------
Job Description- Gala Chair
Statement of Purpose of the Organization- Sell your Organization.Something Like:
“The Boy Scouts of America has earned the reputation over the years of being one of the premier charitable organizations in the traditional annual giving campaign arena.” Or “The Greater Denver Chamber of Commerce is the driving force behind the economic vitality and quality of life within the Central Colorado Region”
Attributes of the Chairman ( This is where you flatter your prospect. When they read this they say to themselves, “Me? I’m this kind of person? Well of course I am!” )
The Gala Chair is an individual of affluence and influence in the community. He/She must be well respected in the community and goal oriented. They should have an affinity for (Scouting/The Chamber/ The Shelter) and the values we promote.
The Chair should be someone who has a certain amount of control over their own schedule and someone who can hold others accountable in a positive manner. Above all the Chair MUST be an individual who can and will take ownership of the event and be responsible for the failure or success of the endeavor.
Objective of the Chairman ( Do not be shy here. State your goals and objectives. If they say no to this kind of specific goal they may not be the right person. )
To take ownership of the Gala/Event and successfully recruit and train the necessary volunteers to adequately identify and evaluate the giving ability of potential donors and guests, and to tell our story and share our needs to these potential donors and guests, so that we raise $ 500,000 of the overall $1,300,000 Finance objective by May 31, 2010.
Responsibilities ( Again, be specific. Let them know EXACTLY whats expected. This will help later, trust us!)
A. Accepts the responsibility of assisting with the recruiting of volunteers and promoting the 2010 Gala and the achievement of the goal of $500,000 and the recruitment of top level community Leaders to fill the following positions:
1. Ticket Sales Chair
2. Table Sponsorship Chair
3. Live Auction Chair
4. Silent Auction Chair
5. Entertainment and Logistics Chair
B. Keeps the team on schedule by setting expectations and providing coaching for team when needed.
C. Makes a substantial contribution to the Gala
D. Keeps volunteers motivated and committed to success.
E. Hosts a regular report meeting with key gala leadership.
F. Empowers Committee members to be successful and lend assistance when needed
Notice how it is specific. How much money to be raised? By when? How many positions to be recruited? What kind of positions?
This kind of written job description can save you a lot of headaches. If a Gala chair thinks the Auction/Gala will be a big party and all they have to do is be a “Party Planner” you have lost the opportunity to have a reliable partner and you have potentially left tens of thousands of dollars on the table.
Save yourself time and trouble. Recruit the right Chair at the start.
Sunday, July 4, 2010
Leverage:More guests and more $$$ to your Auction
More bidders equal more dollars for you in your silent, and especially the “Paddles Up” or “Fund a Need”.
There is a popular show called “Leverage” on TNT right now. It’s all about a group of con men who help out people who need it. They have become the good guys and they bring leverage to bear for respectable reasons. But how can leverage help you at your Gala? How can it increase the number of people that come to your event and generate $10,000 or $20,000 in additional revenue?
The answer is for you to leverage the attendees that are coming or supporters that are not by utilizing them to get more attendees to attend. Mr. John Duffy is on your board. He has been on your board for several years and has been contributing a significant amount to your organization. He believes in the mission but he does not attend your events. He goes to other Galas and Tournaments because his friends invite him. Why not approach him with an idea?
“John, if you can attend the event and bring a table of 8 of your friends and business associates we will have a chance to tell them about what we do. If we explain the need maybe they will be motivated to participate. All you need to do is invite them to a party!”
How many other Galas and events does John get invited to? This is his chance for a little “Payback” (Another great movie).
John does not have to even be on the board, but maybe a good supporter or donor. Think about your list of contributors. Do any of them fit this description? I am big proponent of doing the math. Find 5 of these hidden jewels in your volunteer structure, ask those 5 to get 8 couples to come to the event and let your professional Auction team do the rest. That is 40 new attendees and if you can generate $500 per new attendee that is $20,000 in additional revenue.
Don’t bear the burden alone of trying to fill the room. Ask for help, and you might just get it!
There is a popular show called “Leverage” on TNT right now. It’s all about a group of con men who help out people who need it. They have become the good guys and they bring leverage to bear for respectable reasons. But how can leverage help you at your Gala? How can it increase the number of people that come to your event and generate $10,000 or $20,000 in additional revenue?
The answer is for you to leverage the attendees that are coming or supporters that are not by utilizing them to get more attendees to attend. Mr. John Duffy is on your board. He has been on your board for several years and has been contributing a significant amount to your organization. He believes in the mission but he does not attend your events. He goes to other Galas and Tournaments because his friends invite him. Why not approach him with an idea?
“John, if you can attend the event and bring a table of 8 of your friends and business associates we will have a chance to tell them about what we do. If we explain the need maybe they will be motivated to participate. All you need to do is invite them to a party!”
How many other Galas and events does John get invited to? This is his chance for a little “Payback” (Another great movie).
John does not have to even be on the board, but maybe a good supporter or donor. Think about your list of contributors. Do any of them fit this description? I am big proponent of doing the math. Find 5 of these hidden jewels in your volunteer structure, ask those 5 to get 8 couples to come to the event and let your professional Auction team do the rest. That is 40 new attendees and if you can generate $500 per new attendee that is $20,000 in additional revenue.
Don’t bear the burden alone of trying to fill the room. Ask for help, and you might just get it!
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