Silent and live auctions are powerful tools for raising money for your organization, and a great way to get and keep people involved. Everyone at your auction is there to support your organization. What else can you do to maximize their giving? Even if your event attendees don’t win the bid on any silent or live auction items, the "special appeal" makes it easy for them to participate or give.

Many Auctionpay clients already use this technique. You will also hear this request called a "fund-a cause," "fund-a-need," "fund-an-item," "fund-a-cure," "paddle-raise," or even "dedicated pledge," among other names. Most likely, if you’re using a professional auctioneer, he or she will be familiar with this. Talk with your auctioneer to develop a strategy for conducting this appeal most effectively.

Many of Auctionpay’s auctioneer partners say that guests have come to expect an appeal at most events. But a great deal of thought and care needs to be put into it ahead of time to do it right. Steven Talbot of Talbot Auctions & Fundraising says, "A special appeal is something the guests anticipate. Many of the largest donations come through the appeal, and many events make more money on their appeal than on the auction itself. It’s all in the planning – from soliciting pre-committed donors to how to conduct the appeal and how to combine pre-committed bids with bids from the audience."

Strategy and planning

Along with the focus of the appeal, it is essential to pre-plan what dollar amounts will be requested, and when the appeal will take place within the live auction. The number one thing to remember is to make the appeal something that is a very concrete, specific need that will entice a majority of your event audience. For instance, if you’re a school, choose something that is going to apply to all grade levels and to all parents, not just a few. "We find that the special appeal is the only opportunity during auction night for every guest to give to the cause. It is very important that some thought is put behind it from the starting bid amount to an engaging presentation, as well as the timing," said Amber Kauhi, Stokes Auction Group.

Pre-planning will help you figure out the appropriate dollar amount to start the appeal. By polling some of your devoted donors ahead to time and letting them know what you’re interested in doing, and the reason behind it, you’ll get a good idea of how to set your bidding increments, but more importantly you’ll get a better idea of how to talk to them about their level of giving. Larger donations can serve as challenge or matching opportunities and may generate additional interest and excitement, even opening up a bit of fun and a competitive environment. Keep in mind, some of your key donors may not be able to make your event, but they can still give via proxy to the special appeal (Yet another good reason to conduct pre-event research). Proxy bids for absentee donors should be acknowledged, as they will inspire other donors.

Execution of the appeal

Someone close to the organization and a compelling speaker is the ideal person to make the appeal. It is essential that it is genuine and comes from the heart, from someone who is very passionate about the organization, or directly affected. Choose a good speaker who can get their point across quickly. It’s important to keep this short and simple, and focused. Possibly even add a PowerPoint slideshow or video to support your point. But always wrap up the presentation with a human touch.

Timing

Our partners have varying opinions about when to do the appeal. Some recommend conducting it half-way to two-thirds of the way through the live auction. Others, like Talbot, always conduct the appeal based on how they build the live auction roster. Talbot said, "We build the interest of the audience in the first third of the roster, then present and conduct the special appeal. Then we begin the middle third of the roster where the most compelling items are offered. In our experience, this has proven to be the most effective placement."

The auctioneer drives the appeal and keeps the energy up during the giving. The lead giver sets the tone with a large gift, whether this gift is $1000, $10,000 or more. The auctioneer will then take over and coordinate and accept the bids. The auctioneer should keep it fun, exciting and playful, and allow enough time for all interested parties to bid at their desired levels. Audience participation is key here, especially if the auctioneer is incorporating absentee bids. The energy from the appeal will impact the rest of the auction.

"If your organization has done its job, they came ready to support your cause, so keep your appeal presentation brief. Respect your guest's time. It's been tested that many people give more money when asked in the right manner. You may worry that this might annoy good supporters. But done right, the appeal actually builds greater support - both financially and emotionally," said Jim Miller, Miller Auction Services, Chicago, Illinois.

Additional resources

For more information on how to implement a special appeal in your live auction, please contact any of our auctioneer partners mentioned in the article, or visit the partner area on our web site, as well as the auction tips section at http://www.auctionpay.com/ed_center/auction-tips/auction-tips.aspx.

I was recently talking to a potential client, we’ll call him "Bob," who called me for advice about how he could improve his school auction. The event had hit a plateau and needed help. He was very receptive to most of my recommendations, but then we hit a snag. I suggested he look into Event Management Software (EMS) to increase the efficiency and profitability of his auction. Translated: I asked Bob to spend some money. Actually, I asked him to 'consider spending mone.' Not even real money at this point, but just considering it was frightening enough.

Don’t get me wrong, there are many nonprofits that understand the benefits of solid, well designed EMS. They look at it, rightfully so, as an investment their auction’s success. Bob just could not get his head around this. To him, it was an expense they could not afford. "We are a small school trying to RAISE money, not spend it," he said more than once.

Bob’s auction facts: $65,000 gross receipts in 2004, 175 silent items, 22 live items, 270 attendees, 4 "full time" committee members, 20 auction night volunteers, nicely catered buffet dinner held at a local hotel.

Benefit auctions are obviously a popular way to raise money for organizations everywhere. It’s my opinion that not all of them can/will survive long term. Many organizations suffer from "shiny ball syndrome." "OOH, look how cool that auction thing is…let’s do one too." The auction donor pie can only be cut in so many slices. Like any segment of business, auctions are becoming more competitive and only the strongest will survive. Will Bob’s?

Read More

This article continues online at http://www.auctionpay.com/
ed_center/auction-tips

About the author

Jim Miller is an auctioneer and consultant, and Auctionpay partner, serving nonprofit organizations nationwide. www.CharityAuctioneer.com.