Before the Bidding Comes the Planning Things to keep in mind wh

September 13, 2005

By Lisa Hannah

Raising funds through a special event is a tried-and-true tactic. In addition to generating revenue, special events can generate awareness for a cause, pinpoint new prospects, demonstrate the impact of giving and build community relationships. While a special event can be a powerful fundraising vehicle, it can entail a fair amount of work and resources. Looking specifically at benefit auctions, keep these best practices in mind to ensure that your event is a success.

Best Practice #1: Plan Effectively

Planning should start nine to 11 months ahead to ensure that you can secure a venue, recruit volunteers, procure items, organize and publicize the event. Most organizations rely on an auction chair and co-chair to orchestrate the planning process. Create committees of volunteers focused on specific aspects of the auction, such as procurement, live auction, silent auction and decorations. The trick with an event is managing a timeline and all of the details that need to come together along the way. Check out event-management software to help you plan and manage the event instead of relying on folders and spreadsheets.

Best Practice #2: Budget Appropriately

The power of an auction is raising thousands or even millions of dollars in a few hours by gathering the right people, the right items and the right passion in one room. But there are costs involved: venue, food and beverages, credit card processing, and services to optimize the event, entertainment, etc. While many things can be donated, there still will be hard costs involved -- plan on covering these costs with ticket sales and corporate sponsorships. Set a budget ahead of time so you can accurately determine how much you will need to raise through auction revenue to reach your goal.

Best Practice #3: Procure the Right Items

Once you have everyone in the room, you want to make sure the items available to bid on meet the interests of your guests. The more demand for an item, the higher the bidding and the more revenue you raise. The best auction lots are items, experiences and activities that are not easily purchased. When determining these items, think about your audience, their interests and a realistic budget range for bidders. For school auctions, children's artwork is always a winner.

Best Practice #4: Adopt Technology When Useful

Technology has come a long way in helping nonprofit fundraising, and auctions are no exception. Some of the most significant cost and time expenditures around an event can be simplified by implementing a little technology. Invitations are a great example. While everyone likes to receive a pretty invitation to open, consider augmenting the RSVP process by offering online registration for your guests. This will reduce the cost of printed reply cards and stamps, as well as make it more convenient for your guests. Once you have a Web page in place to take registration, you can add the URL to all of your organization's mailings, including follow-up reminders about the event.

Best Practice #5: Focus on the Event-day Experience

You can plan the best event, budget accurately, procure enticing items and utilize technology wisely, but ultimately the success of your event comes down to one critical point: the guest experience. If your guests do not have a good time, chances are they will not bid often, they might not stay for the entire event, they might not return for your next event, and they might share their unpleasant experience with friends. To ensure that this doesn't happen, always keep a focus on the event-day experience from the guest's perspective. Think about what elements of the event will keep your guests happy and what will detract from a positive experience. For example, a disorganized event with long lines at check-in and check-out will have a negative impact on the guest experience.

Fundraising events can be an effective way for nonprofit organizations to raise needed funds and visibility. Successful events do not happen by chance. They require significant planning and effort. Adopting established best practices at your next event can help ensure a great outcome.

Lisa Hannah is the director of marketing at Auctionpay and can be reached at lhannah@auctionpay.com.