Strategies to improve auction fundraisers

Giving USA recently released its annual report on American Philanthropy. The article indicated that total charitable giving declined over 13 percent in 2008 and 2009 primarily due to a 17.5 percent decrease in giving by living individuals who account for 70 percent of all donations. Patrick Rooney, executive director of the Indiana University Center on Philanthropy, which compiles Giving USA, forecasts a full recovery in charitable giving will take more than a decade.

That said, there are several nonprofit organizations that are setting record-breaking fundraising auction results by continually adapting, innovating and branding their auction efforts. Executive directors who take an entrepreneurial approach are not settling for reduced revenues nor abandoning their fundraising auction efforts. In fact, one charitable organization had its best year in 2008 as the economy slid, raising more than $750,000, and has continued to grow donations to over $1 million today. This particular organization sold one live auction item which was an exclusive party for 10 at a celebrity's home three times for a total of $1.3 million! Due to the exclusivity of the item and an audience who sincerely believed in the cause, the one item was able to generate the optimum price.

However, non-profits who employ old fundraising auction methods are facing challenges. By staying in their "comfort zone," these charities face reduced profits, fewer donors and less sponsor participation. The slow economic recovery is the perfect time to concentrate on building relationships and spotlighting the distinctiveness of the organization's community impact. Charities that are willing to change the way they run their auctions can improve donor relations, solidify their brand, and ultimately improve giving.

Implement these seven strategies to help you lead your charitable organization to greater fiscal success:

* Choose live auctions whenever possible

Historically, live auctions generate the most revenue. In this challenging economy, there is now more competitiveness between the influential donors to give and doing so in a live auction platform allows prospective brokers to experience the passion of committed donors.

Live auctions also streamline the fundraising process so it is more effective and efficient.

* Boost bidding opportunities for silent auctions

While silent auctions are waning due to costly display space, and personnel investment of time and energy, they are ways to make them more profitable and user-friendly. For example, auction items can be posted online several weeks prior to an event, and members and attendees can start bidding! This creates synergy and excitement that carries over to the actual live auction the day or night of the event. Additionally, posting auction items online provides guests the opportunity to bid via Smartphone if they are running late to the event or on tablets from the dinner tables.

* Ignite passion in individual donors

A special appeal becomes a "Public, Live Ask" of every guest instead of written letters only to major donors. The most successful appeals request funds to support a program that fulfills the donor's passion, not something for which the charity needs money. The "appeal" has become so important in raising money at the event and cultivating future giving that specially trained fundraising auctioneers are hired to script, stage and execute it. Because the ideal donor has the ability, interest and passion for a cause, they are more willing to meet in person. Private cocktail parties where only continuous and upgrading donors attend have become exclusive events and are often more successful than a live auction.

* Use "rifle" approach, opposed to "shotgun"

A little bit of planning goes a long way when compiling the guest list. Using the "rifle" approach rather than "shotgun" approach guarantees the right mix of donors, which ultimately will bring your organization a higher return on investment. Savvy charities will implement strategic planning resources prior to the event. The ultimate goals is to have guests who are passionate about you growing your cause and helping more people in need.

* Communication is key, but keep it brief and to the point

Brand the auction or appeal to ensure that everyone understands how your organization makes a unique impact in the community and how the money will be spent. Use news story style communication, such as 10-second sound bites, 59-second first person stories, visual displays and audio effects instead of long speeches, dull statistics, and entertainment. Donors value their time and money and want to hear how impactful your cause is on the community, and how they can help fulfill that need with passion. However, they do want to be bored.

* Streamline the check-out process

There are many different ways to set up an efficient and effective check-out system. For example, credit cards can be swiped during the registration process and kept on file so guests can quickly exit when the event is over. Also, new technologies such as hand-held electronic devices are now available. These devices, which replace written bid sheets, can be pre-loaded with each and every auction item and also allow guests to make a simple donation. As you can see, with today's technological advances, there are many ways to streamline your bidding and check-out process. However, it is advisable to consult an auction specialist to determine the best strategy for your organization.

* Corporations do not want to be asked to underwrite an entire event

While companies are still interested in contributing to reputable causes, more than ever, they want to know what's in it for them. Clearly identify how a gift will increase a corporation's exposure, build its brand, and meet its marketing and outreach goals.

It is expected that our economy will remain challenging for many years to come. Charitable organizations that rise above the competition and succeed will be ones that are flexible and willing to implement new strategies and traditions that appeal to existing supporters and excite and encourage prospective donors.

Karin Costa is an auction planner trained through the Benefit Auctioneer Specialist program at the National Auctioneers Associations. Contact her through KarinCosta.net.