Our nonprofit clients often ask us for advice as to the most effective auction format with the highest success rate in fundraising for a given cause. As a company with over 25 years of experience in helping many prominent nonprofit clients in their fundraising efforts, we recommend a combination of auction formats to ensure the maximum number of participants given different tastes and inclination. Using multiple auction formats also adds to the “excitement” of the event thus creating a vibe that can only lead to more success for the event sponsors. There are at least 5 different auction formats that are typically used at fundraising events with varying degree of success in raising sizable funds for the cause. They are;
Silent Auctions
Live Auctions
Mobile Bidding
Chinese Auctions
Impact Auctions
Silent Auctions
Most people are familiar with silent auctions. A large variety of items—either by description (such as gift certificates) or in physical format (such as gift baskets) are on display with a signup sheet in front of each. Some key success factors in silent auctions are:
Grouping the donated items by theme
Placement of items in high traffic areas (like near a bar)
Staggering the bidding end time by groups to create a buzz as bidding for each grouping comes to an end.
Live Auctions
Live auctions can create a great deal of excitement among event participants depending on who the auctioneer is. The emcee or auctioneer can play a pivotal role in creating high degree of excitement that can lead to success in fundraising. Using professional and entertaining auctioneers with talent for showmanship can make or break a live auction. In addition to using a professional auctioneer, the items for a live auction also affect the success of the event. It is recommended that high-value items with some pizzazz (for example exotic trips) be placed for live auction. It is also very important that the auctioneer be made aware of the client’s financial goals in using a live auction.
Mobile Bidding
Mobile bidding auctions are increasingly becoming the preferred format. The younger participants are fully comfortable in using an app to browse donated items and bid on them. Increasing reach and participation, mobile bidding auctions are known to increase funds raised by an average of 30% when switching from paper to mobile bidding. Bidders bid directly from their mobile devices, then receive instant outbid text notifications taking them back to the item to bid again. At most mobile bidding auctions, there are also staff or volunteers with tablets in hand to help with technical issue, if any, or assist those who may need some hand holding in navigate the process. There are several software platforms on the market for mobile bidding.
Chinese Auctions
Chinese auctions add a raffle component to regular [silent] auctions to generate a variety in the process. Instead of just bidding on a silent auction item, a Chinese auction involves selling batches of raffle tickets to event participants. Guests then deposit their raffle tickets into various fishbowls next to each auction item that the ticket holder wants to win. The advantage of a Chinese auction is that it usually improves the financial results for the charity because everyone bidding has prepaid for their chance by buying a batch of raffle tickets.
Impact Auctions
In impact auctions all bids at each price point are accepted because they are considered a straight donation of the bid amount to make an impact. Impact auctions are best handled by professional auctioneers or charismatic emcees who can work the crowd. The auctioneer publicly recognizes each group for their contribution. Done right, impact auctions can make an impact on the event’s fundraising goals.
The success of fundraising events lies in (a) recognizing the makeup of the demographics of potential attendees; and (b) employing the most effective auction format(s) that is consistent with the makeup of the audience. Using more than one format will ensure that there is something for everyone to enjoy and take part in with the goal of maximizing the fundraising targets.
For the past 25 years, Your Great Event has been helping numerous nonprofits in organizing, producing and managing their fundraising events including using multiple auction formats. Let us help you to roll out a successful fundraising event.