Choose Your Tuesday: Greed or Goodwill?
Congratulations!
Whether you’re planning a stand-alone auction or adding an auction to an existing event, these fun-filled bidding extravaganzas serve multiple purposes. They’re hard work (after all, anything worth doing takes dedication, energy and time), but well worth the effort when done well. They can help you:
- Raise more money.
- Provide additional value and entertainment for your participants.
- Connect with donors involved with your event and your cause at a deeper level.
- Secure new donors.
- Secure business sponsors.
- Raise awareness by reaching out more broadly to your community.
To assure you get the biggest bang for your buck, and make your life as easy as possible, here are some things to remember when preparing for fundraising auctions.
Choose What Type of Auction You Want to Run
Before beginning to plan auction logistics, choose whether your auction will be stand-alone (the auction is the fundraiser) or incorporated into your larger event (e.g., Gala, Golf Tournament, Carnival, Picnic, etc.). Basic auction type choices are:
1. In Person
In person auctions are a terrific way to add some pzazz to your event. They liven up the occasion, building excitement as bidders wait to see who will win each item and how much money will ultimately be raised for your cause.
2. Virtual
Virtual, online auctions allow people to still participate and contribute to your fundraiser, without the need to physically attend the event. These became particularly popular during the Covid pandemic, when many folks didn’t want to gather in groups. Because they’ve been so successful, many organizations are choosing to continue them. These are a great choice if your donor base is spread wide geographically.
3. Hybrid
Hybrid auctions are a way to split the difference, having the best of both worlds. They’re an opportunity to choose the most beneficial features of each auction type, customizing your event to meet the needs of all stakeholders – sponsors, in-person attendees, online participants and, of course, your organization.
Silent or Live or Combo?
Whether you select in person, virtual or hybrid, you’ll also need to choose between a silent or live auction.
1. Silent
Silent auctions mean exactly that. Silent. They’re suited for everyone, introverts as well as extroverts, as bidders won’t be verbally calling out their bids. Donors bid silently, either using bid sheets or a mobile app (if in person) or auction software (if online), until a set time when the auction closes. At that time, no more bids are allowed. The highest online bidder automatically wins (much like an eBay auction). If you’re in person, the bid sheets can be collected and the highest bidder is determined. Bidders can simply write their names on the sheets each time they bid or re-bid, or you can assign them numbers so they retain anonymity while bidding.
2. Live
Live auctions are conducted verbally by an emcee or auctioneer. These auctions can be useful for larger ticket items where verbal bidding raises excitement via the back and forth to increase the final bid. It’s recommended to keep live auctions to no more than one hour to keep people’s attention and energy high. If you’re adding the auction to an already existing event, keep the live auction component between 10 and 30 minutes.
3. Combo
Sometimes silent auctions are added to the event as a form of entertainment. Guests may mingle, even enjoying drinks and appetizers, while they simultaneously peruse the items. Later on, during the sit-down portion of your event, you can set aside a short period for a live auction. In addition to selling large-ticket items, this live component is well-suited to ‘Fund a Need’ types of auctions to benefit one or more particular programs.
Match the Auction to the Event
The type of event you’re planning may be the easiest way to determine whether you should include an auction, and whether your auction should be in-person or online and silent or live. Here’s what to consider:
What’s the ROI of Your Event, and Do You Need More?
Sometimes you’ve got an existing, beloved event to which you’re hoping to add additional revenue. An auction would be a great choice!
Other times you’ve got a group of volunteers whose heart is set on a particular event, but it doesn’t lend itself well to an auction. As an example, fun runs are easy to plan and have a high ROI for any organization size but it may be harder to add an auction to a fun run event in a way that feels natural to your participants. An art exhibit or talent show, however, can both showcase community talent and naturally provide items for your auction. If your type of event does not fit with an auction, you’ll want to make clear your limitations, perhaps choosing an auction for another year’s event. Or you could add a stand-alone online auction later in the year.
What Types of Interactions Do You Want to Foster?
Event types also vary in terms of how you foster interactions among donors. If you want to use your auction as an opportunity to increase socializing, for example, a silent auction is a good option. If you want to wake up the competitive nature of some of your high-roller donors, a live auction can do the trick. Once you’ve gone through the pros and cons of each type of event, and chosen the best fit for you and your group, you’ll need to tackle the logistics of that event and its associated auction.
Prepare for Bidding + Raising Money: It Doesn’t Have to be a Pain!
Whatever type of auction you choose, the ease with which folks are able to place their bids – and re-bids – will contribute hugely to your success. When bidders can’t place fast bids, you lose out on income. For silent auctions, here are the bidding options recommended for your consideration:
- Basic blank bid sheet: Print and you are on your way.
- Customized bid sheets: Set your starting bid and print with bid increments
- Bid sheets plus display pages: Pair the bid sheet with more info and get more bids.
- Mobile bidding: Ditch the bid sheets entirely and let a system handle it!
1. Bid Sheets
When setting up either a bid sheet or mobile bidding for your auction, you’ll want to determine both the starting silent auction bid and bid increments. Answering these two questions can help you narrow down the complexity and structure of your bid sheets.
BLANK or CUSTOM: Blank bid sheets will give you the least structure and complexity. If this is your first auction and/or you’re auctioning straightforward, easy-to-describe items, then you’ll probably be okay working with a blank or simple customized bid sheet. As a general rule, pricing for ordinary goods and services is start the bidding at about 40-50% of the retail, then divide the remaining value by 5 to engage a typical back and forth bidding exchange.
Example: Yummy Restaurant donates a $100 gift certificate. Starting bid should be $100/ 2= $40-$50 Increments should be $50/5 = $10.
CUSTOM PLUS: If you’re offering unique or higher value goods and services as auction items, or are auctioning keepsakes and other priceless items, then a more structured and complex bid system is recommended. Start too high and risk no bids; start too low and close at an undervalued price. It is generally recommended to start the bidding at about 40%-60% of a realistic retail value, then divide the remaining value in bite sized chunks to quickly elevate the donation. High Value items do well at live auctions too, permitting impromptu modifications. If the starting bid gets no activity, the auctioneer can immediately lower the starting bid and adjust accordingly.
Example pricing high value: A vacation package is donated with a retail value of $3000. Starting bid should be $1200-$1800 range. Increments should be $75-$200 range
2. Mobile Bidding
Want to raise the most money possible? A system of mobile bidding will accommodate both greater structure and complexity, allowing attendees to bid faster and more frequently. And it can work for in-person or online events. It might not be the right fit for every event, but it can be a very successful approach to streamlining your fundraiser. Here’s what to consider:
TECHNOLOGY REQUIRED: Mobile bidding means committing to an online auction (even if the event is in-person), so you’ll need to use an auction software, upload your auction items, share access with your bidders, and decide how long you want the auction to run for (fully online auctions can run for several days instead of just several hours). At an in-person event, silent auction bid sheets can be replaced with mobile bidding, but you’ll need to ensure your venue has good wifi or mobile service availability. You may also want to consider adding text integration that notifies your bidders when they’ve been outbid.
ACTIVATES CONTINUED BIDDING: When a silent auction occurs on-site, too often bidding stagnates. Many bids are placed but never re-bid, because the silent auction is in a static location or over an extended period. Participants that placed bids at the beginning of the event may not be on location at the close of the even. Or they may become distracted and forget to keep an eye on the item they want. Mobile, online auctions can be very successful for fundraisers that spread out over time or space. Using a mobile app or text messages to notify bidders they’ve been outbid can encourage rebids. Additionally, software allows bidders to set max bids that automatically increase their bid when someone bids above them, keeping the prices climbing and resulting in better income for your cause!
Closing Thoughts
Auctions can be a great addition to a wide variety of fundraising events and are highly effective at engaging your community and raising money for your cause. Whether you choose an in-person auction that leverages the energy and excitement of live bidding, or you go for an online auction that allows for wide participation and engagement, taking the time to prepare properly for the logistics of your auction ahead of time will smooth out any potential kinks in the plan and keep your event running smoothly and the money flowing as participants bid.
Good luck and happy fundraising!
Laurie Hochman has a passion for helping groups exceed their fundraising goals. After using Auctria for many auction fundraisers, she joined the team to help others boost their auction fundraising for many wonderful causes. Auctria has been utilized in over 45,000 event fundraisers raising over $500M. Follow Laurie on LinkedIn.
