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Step By Step Fundraising NewsletterApril 2010Auctions can be a great source of revenue for a nonprofit when combined with a well-attended event. In this month's newsletter auctioneer Sherry Truhlar shares a great strategy for getting the most revenue for auction items. Secrets of the Charity Auction Experts
If you have an auction on the horizon start getting prepared now. Secrets of the Charity Auction Experts provides solid advice from seasoned fundraisers and auctioneers. In over 3 hours of audio interview playback and text transcripts you'll discover the keys to getting more auction items, getting higher bids and creating an overall more successful event. Plus the best tips are consolidated for you in the bonus "81 Tips to Make Your Auction Great." From now until the end of April you can get this training at half off the usual price, now only $33.50. Just use coupon code HALF in the checkout. Raise more funds at your auction by breaking up the partyby Sherry Truhlar, Red
Apple Auctions At your annual auction, you may find that you are able to raise more money selling something in "parts" or "pieces" than you can if you offer the whole. For example, a common auction item is a themed party donated by a family. One of my clients has a well-known family donate a fun house party each year. Recently the theme swirled around the glamour of an Emmy party. The entire night was laid out to take advantage of the theme with a long red carpet rolled out to meet guests at the driveway, a pseudo paparazzi with press and screaming fans greeting guests as they emerged from their vehicles, and a Hollywood worthy menu complete with champagne toasts. There were two options for selling tickets to this party. One option was to allow sell it to one person who could then invite 50 people (that is, selling it by the sum). The second option was to sell 25 couples a pair of tickets (i.e., selling it by the parts). The hosts indicated the donation value was $2000, or $40 a person for the night's entertainment. To earn at least the value of the party, the auction needed one bidder to pay $2000 or 25 couples to pay $80. An $80 investment per couple for this particular group seemed modest. The committee thought that a couple would easily pay $100 or $125 for that experience, but it was unlikely that any one person would pay $2000 for the entire party. That committee knew their audience. Twenty-five couples paid $100 per couple netting $2500 for the Emmy party. For maximum revenue, the committee opted to break the party apart - selling 25 pairs of tickets to the party instead of selling one party - in order to sell it. In your part of the world, a $10 or $20 ticket price might be more reasonable, so don't focus on the specific pricing from my client. Ticket prices for this type of experience will vary widely depending on your location. Yet the process of "selling the parts instead of the whole" works in every location. As your auction committee brings in donations and packages items, see where you can apply the strategy to sell parts versus the whole. You'll find opportunities to generate more revenue while tapping more supporters to your cause! Do tax breaks influence charitable giving?
After a question from a newsletter reader, I started researching the impact of tax incentives on charitable giving. I only found a couple of good articles on the topic but posted them anyway, and opened it up for discussion. Sherry also had some useful comments about the tax deduction of auction item donations. Take a look at this Q&A and leave a comment. Do tax deductions influence whether you give to a cause or not? How have you seen this play out at your nonprofit organization? To Your Continued Fundraising Success,
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