by Carolyn Luscombe, CSEM, CSEP, CMP, Eclectic Events International

Fundraising events are an important vehicle for an organization to raise much needed awareness and of course, funds. Auctions are a wonderful addition to your event to insure that your guests stay longer and of course, infuse more needed funds into your organization. Planned properly, an auction can net as much as your event ticket sales, if not exceed them. Just like an event, auctions are highly time consuming to plan and execute and require a lot of resources.

In order to be successful, auctions have to be properly planned with enough time allocated for the planning process. For seasoned planners, a year is the general rule with less time for smaller endeavors. For inexperienced planners, 12-18 months is recommended.

The most important fundamental is to understand why people give. Although some may argue that altruism is the primary reason, I disagree. When a person gives they inevitably get something in return – even if that something is just the feeling of pride, satisfaction or happiness. People give because they feel obligated to by a colleague or friend; to achieve a form of recognition; out of sympathy; belief in the cause/mission; for a tax receipt or sometimes it’s as simple as the person wants to do something positive to feel good about themselves.

There are several steps to planning a successful auction and these steps are as follows:

1. Create an Auction Committee complete with a Chair and committee members;
   
   
2. The people that sit on this committee should be enthusiastic, able to ask for donations and have a belief in the cause/organization;
   
   
3. A timeline should be created consisting of tasks, who will complete the tasks and by when and should be monitored and followed up on regularly by the Chair;
   
   
4. Determine what additional benefits (not to be confused here with sponsorship!) could be offered to a prospective donor such as program recognition or a tax receipt if applicable.
   
   
5. A proper, informed ask must be conducted. A donation solicitation letter needs to be created containing information such as: organization background, organization mission, objectives of the auction and event, explain exactly how the donor is helping the organization by coming on board as a donor and any additional benefits the donor might receive. Included a deadline for receiving completed forms, a deadline for receiving items and provide an address for items to be shipped to. Make sure the letter is personally addressed (not a form letter) and personally signed by the Chair and/or committee and is presented on letterhead. Make sure there is someone dedicated to answering donor inquiries.
   
   
6. Follow-up several times. Just because a prospective donor doesn’t respond, doesn’t mean they won’t give. It is a proven fact that reminders pay! Follow-ups are both professional and essential in successfully soliciting donations.
   
   
7. Attempt to obtain items that are unique and out of the ordinary. Everyone knows what a TV or a microwave costs and people who bid at auctions are seeking a deal. Perception is everything. A creative gift basket with unique items, art and “experiences” will fare much better financially as a result.
   
8. Create a master spread sheet starting with Item #, Company Name, Contact, Address, Phone, Email, Description of Item Donated, Value, Bid Start, Winning Bid and Winning Bidder contact information. This will act as a master to create your auction program and be a valuable tool onsite for quick calculations.
   
   
9. Create policies and procedures for the auction. These can include rules on how to place bids, payment for bids, disclaimers as to the committee’s responsibilities (ie. not responsible for inaccuracies or variances, travel with accommodation packages, etc.) auction open and end times, all sales final (no exchanges/refunds), items are “as is”, and any other items that are important. These rules should be printed in your program and on large signage posted onsite in the auction area.
   
   
10. Create “bid sheets” for each item to be used onsite day of by the bidders. This form should have the Item number, item description, donor name, value, starting bid and bidding increments with a spot for Bid Amount, Bidder Name, Bidder Phone, etc. These should be customized to your needs.
    
    
11. The general rule is that auction item’s bid should start at 1/3 it’s value. Therefore if an item is worth $150.00, the minimum bid should be $50.00. Beware of “inflated” values – determine the actual value and start the bid there. If starting bids are too high, the bidder doesn’t feel they are getting a deal and you will make nothing. Increments should be set at $5.00 and up per item ending. For example, $200.00 and under, increments should be $10.00 per item. The bid starts at $200.00 and the next bid is $210.00. The rationale behind this is to disallow penny-pinching increments of 25 cents, one dollar and so on – you need to ensure the organization makes money of this fundraising endeavor!
    
    
12. Display is key for auction items. The more esthetically pleasing the auction items and auction area appears, the potential bidder’s perception of value increases. Plan for 3-5 items per 8’ table depending on size and ensure these tables are ordered. Plan for a well-lit space that will not clutter the auction area or make the area appear too large. If a themed event, try to theme the items or at least, the dÈcor in that area. Dress the tables with linens, feature balloon trees and other types of appropriate dÈcor to draw attention to the area and create a welcoming and exciting environment.
    
    
13. The committee should be working the auction in terms of set-up and monitoring. Bid sheets have to be constantly monitored for incorrect information and sheets need to be collected and replaced. An onsite cashier area also needs to be set-up to award items and collect payments after the auction closes.
    
    
14. Make sure that committee members, volunteers and donors are thanked properly. A copy of the program and a letter should be sent post-auction as a thanks and explain how the donor made a difference.
    
    

Carolyn Luscombe, CSEM, CSEP, CMP is the President of the award-winning, Toronto-based event firm, Eclectic Events International. She is an instructor in Event & Meeting Management at George Brown College, industry speaker and an award-winning corporate event producer. She is a past president and current board member of ISES Toronto.