Using Online Special Events to Raise Money

Here’s what online fundraising isn’t: simply putting a “donate now” button on your Web site.

Online fundraising isn’t quite that simple, but it’s not that complicated, either. Why not find a way to involve your entire community in an activity that they will enjoy while tapping into a new revenue source?

Research indicates that when donors get something in return for their contribution, they have a higher propensity to give. In fact, fundraising auctions tap into dollars that often are held separate from their charitable-giving budgets -- mainly, household discretionary dollars. And, when an auction is put onto the Internet, it is taken to an entirely new level.

Here are some best practices to help you out along the way.

1. CREATE A COMPELLING AUCTION HOME PAGE.
Make sure your auction home page says something about you. There’s no better place to share the history of your organization, the purpose for the online auction and how the proceeds will be used to benefit your cause. Remember, one of the major advantages of an online auction is being able to reach out to charitable bidders.

2. LEVERAGE YOUR COMMUNITY FOR ITEM DONATIONS.
Spending money to get items for your auction means less net profit for your organization. Use your auction home page to solicit donations. E-mail your community for donations. Don’t be shy. Trust me, they want to help. It’s even better if you can secure some unique items from high-profile donors. Some suggestions: an autographed baseball from a major-league star, “mayor for a day” arrangements, or dinner for six prepared by a local chef in a winner’s home. These items add excitement to your auction catalog and spur lots of friendly competitive bidding.

3. LEVERAGE BOARD MEMBERS, STAFF AND VOLUNTEERS TO RECRUIT SPONSORS.
Recruiting sponsors can defray the costs associated with running an online auction. Your board members, staff and volunteers most likely are well connected in your community and can help you make contact with potential sponsors. Make sure your team members are able to solidly communicate the value of sponsoring your online auction: better exposure, more bidders, etc.

4. DON’T BE AFRAID TO REACH OUT TO YOUR MEMBERS.
Your members care about your cause. Chances are they want to contribute to your online-auction fundraiser in some capacity. Send frequent e-mails about how they can get involved. Ask for item donations, tell them when the auction is open and remind them to bid now and bid often. You’re marketing your online event and your organization. Repetition works.

5. PROMOTE YOUR AUCTION OUTSIDE OF YOUR IMMEDIATE COMMUNITY.
Do you have a media partner? Maybe a radio station or community newspaper would be willing to promote your online auction. The more interested parties you draw, the more likely that you will drive up the bidding. And even if you don’t have access to a specific media partner, consider taking out an ad in your community newspaper or on your local cable station. Some of the best online auctions are run by individuals who understand both marketing and fundraising. Learn from them.

6. REMIND YOUR COMMUNITY MEMBERS OF YOUR FUNDRAISING GOAL.
Let your community share in the excitement that comes from meeting and exceeding your fundraising goals. Let them know how much you hope to raise and where the funds will go. As your auction progresses, send updates on how close you are to meeting your online-auction goals. This will create a challenge that everyone will strive to meet through bidding and referrals.

And for good measure, I’ll share some of the absolute worst practices I’ve seen from fundraising professionals who just didn’t understand the value of online fundraising auctions:

1. NOT USING E-MAIL OR NOT SENDING E-MAIL MESSAGES FREQUENTLY ENOUGH.
If they don’t know about your auction, chances are they won’t bid.

2. HOLDING AN AUCTION WITHOUT ENOUGH TIME TO EFFECTIVELY PROMOTE IT.
You need some time to build a compelling home page and promote your online event.

3. OMITTING KEY INFORMATION FROM AN AUCTION HOME PAGE OR E-MAIL.
Why should they bid if they don’t understand what you’re doing?

4. NOT NOTIFYING BIDDERS WHEN THEY’VE WON AN ITEM.
They probably would want to know and receive their item.

5. BUILDING AN AUCTION AND EXPECTING IT TO RUN ITSELF.

Greg McHale is the founder of cMarket, an online-auction fundraising company based in Cambridge, Mass. He can be reached at gmchale@cmarket.com.