Biggest Fundraising Auction Trend of 2016

What is the biggest trend?

The biggest trend I've encouraged this year has been (drumroll please)...

Fewer live auction items.

What's happening?

For years I've been consulting my clients that that the sweet spot for number of items in a live auction has been 6-12. Usually organizations have fallen closer to 10-12 items, but this year I've changed my tune. While up to 12 live auction items may have been beneficial for raising money in the past, now the donor climate is changing.  

Over the past several years, we've seen a rise in the success of conducting a Fund-A-Need at each event. The Fund-A-Need is a sort of live crowdfunding where everyone in the room gets the opportunity to make a difference by giving what they can. Usually (not always) the Fund-A-Need happens after the Live Auction. While Live Auctions can be fun, if they run too long, they get old and you lose donors' attention. The handful of bidders interested in the items will stay engaged, but the other 95% of the potential donors in the room will be distracted and become mentally "over it." 

While you are gaining a couple thousand extra dollars by adding additional live auction items, you are sacrificing potentially tens of thousands of dollars in the fund-a-need.  This is one of those cases where time is money, almost literally.

In a time where crowdfunding is wildly popular and effective, especially with the ever growing millennial donors, it is important to do everything in our power to engage the majority of donors when conducting the Fund-A-Need.

What is the right number of items? 

This year I have been encouraging my clients to stick with 4-6 items in their live auction. This is the perfect amount to get the audience's attention and raise some big bucks with out it going too long and loosing the attention of donors who aren't bidding but could be potential Fund-A-Need donors.

My clients have seen tremendous success with cutting their number of live auction items in half. Even with only half of the live auction items, this spring has been full of record-breaking events. Fewer items means they become more competitive so the items that ARE in the live auction tend to bring in more revenue than they would have otherwise. Plus donors are still fully mentally engaged during the Fund-A-Need which means more people participate. More participating donors means more revenue for your organization. 

If you'd like to learn how to make more money at your next fundraising event, contact me via the form in my sidebar ->

Must Have Live Auction Item #5: Sports

This the post in my blog series on Must Have Auction Items for a Varied Live Auction. If you haven't caught the other posts, or aren't sure why it is so imporant to have a varied live auction, you can find all of those posts HERE or archived on my blog. Stay awhile and look around. I provide all of this information to help my clients or anyone else trying to plan their fundraiser. My goal is to help organizations be as successful as possible!  

The last type of item you should be looking for as you solicit items for your live auction is a Sports related item. 

Criteria for a successful Sports Item:

Exclusivity. Like with any live auction item, you will have more success if the item is not a dime a dozen. Signed swag is good if it is by a well-known, well-loved player who does not hand out their autograph liberally. 

Appeal. This should seem obvious, but for some people it is not. If you are receiving sports tickets, make sure it is to a GOOD game with GOOD seats. Example for all of my Minnesota friends: 50 yard line to the Vikings/Packers game.  

Open Availability. If someone in your association has great season tickets to some local professional team, ask them if they would be willing to donate tickets that the bidder can select the date. A few black-out dates are acceptable, but still not ideal. This takes a lot of sacrifice on the donors part, but it's worth asking.

Best way to get sports tickets: 

Ask your company to donate. So many companies have season tickets that they give out to clients or employees as incentives. It does not hurt them one bit to give a set to your organization to sell. If they are less than amazing tickets, sell them on the silent auction, but still ask and take those babies off their hands.

If you have questions about your sports related item or any of the other sports categories I've listed in this series, please contact me and I'd love to dialogue with you about your live auction line up. 

Must Have Live Auction Item #4: Alcohol

I will start by saying this item is not for all organizations. Any organization affiliated with addiction and recovery or even domestic violance as well as some religious affiliations may want to steer clear of this type of item out of respect for the attendees. 

With that being said, items including an experience related to alcohol usually has a broad appeal. 

Examples of Alcohol Related Live Auction Items

Wall of Wine.  This is where all of the board members or auction committee members donate a bottle of wine (some bottles will be higher quality than others) until you have a collection of anywhere from 10-50 bottles of wine, and you sell it as a package. You will want to print any higher end bottles in your program, and ideally would print all of the bottles in the program so people can see what they are bidding. It is unrealistic and much less effective to verbally list all the bottles when introducing the item.

Wine Tasting. A private and exclusive wine tasting in someone's home with a professional Sommelier. 

Private Brewery Party. Local microbreweries are popping up all over the place (especially here in Minneapolis), but a tour is not enough because really anyone can go tour a brewery. A private tasting party at the brewery for 10+ people with catering by a local food truck (or two) would be an item worth selling on live auction and would provide an exclusive appeal. 

Wheel barrel of Booze. This item is always a hit. It is similar to the Wall of Wine, except it is an actual wheel barrel filled with alcohol. Arrange the alcohol so the higher end items are showing. You could also include glasses and garnishes (olives, cherries, frilly toothpicks, etc) in with the alcohol to fully stock the bar. This is an easy item to fill because auction committee members or board members would all go together to in contributing to this item. The winning bidder gets to take home their new wheel barrel and all of its contents. 

If you have a question about any of these items or want to know if it would be appropriate for you to add one of these items to your organization's live auction, please reach out and I will give honest feedback on your live auction lineup. 

Must Have Live Auction Item #3: Unique Experience

A unique experience is the hardest item to come up with because you often need to think outside of the box and pull your personal connections in for this. There is really no real criteria here other than provide an experience or an item that people cannot access on their own. So, for this post, I will just be listing examples of things I have sold to get your creative juices flowing.

Examples of Unique Experiences

• Character created about winning bidder in a well known author's next book

• Trip to visit and tour Jay Leno's garage (with Jay Leno if the timing was right)

• Principal for a Day

• Trip with a professional sport's team to an out of state game which included accommodations and riding with the team on their plane to and from the game as well as an after party post game.

• Lock in sleepover at a museum with a roof top movie

• Premier parking space for school pickup and drop off

• Batboy (bat-kid) for local professional Baseball team

• Box at a professional sports game hosted by a (well-known) retired player

• Timed shopping spree at a local department store

The possibilities are endless for these types of items. What I would encourage you and your team to do is to plan an entire meeting that is set aside for brainstorming this type of item. Throw out ideas with the freedom of "no idea is a bad idea" and just go with it. Some of the best auction items sound "stupid" in your head before you say it outloud and realize that it could actually happen with the connections in the room. Eventually what will happen is one member will throw out an idea, another member will know someone with the right connections and you will find yourself with a very exclusive an unique idea. 

Must Have Live Auction Item #2: Meal/Dinner Party

These are one of my favorite things to sell ever and every auction should have one. What I like about this item is that you don't have to be well connected to have this item. You don't even need to know a chef, you just need to have someone who is willing to host a dinner party for 6-10 people and cook food and provide wine. This could be hosted at a popular restaurant or even in someone's home.

Criteria For a Successful Meal/Dinner Party Item:

Hosted by a likable person. Not necessarily a famous person. Just someone that people enjoy being around.  If you have a willing participant, but their personality is just a little choppy or hard to be around, no one will bid. 

Multiple Courses. Hors d'oeuvres, salad, dinner and dessert would be enough, but if your chef can do other courses (soup, cheese, whatever else all those extra forks are for type courses) , that makes the meal stand out more.

Wine. Must I say more? Wine or beer pairings included are a must!

6-10 people. I have found that this is the sweet spot for number of people included in successfully selling an item of this type. 4 people is too few and 12 can be too difficult to coordinate with guests.  

An Expiration Date. This is important so people actually claim their meal with the donor. Usually one year from the date of the event is a good expiration. This is also out of respect for the donor and their time. 

Examples: 

• Chef's dinner at a highly anticipated new restaurant prior to the restaurant opening. 
• Meal prepared by a chef featured on the Food Network (seriously, there is probably someone in your area featured on the food network) 
• Meal prepared in YOUR home by the principal of the school. 
• Meal in the home of a CEO of a fortune 100 company in your area with the CEO and spouse. Meal prepared by catering company. 
• Authentic Italian dinner prepared by someone closely associated by the organization who grew up in Italy - secret family recipes. 
• Dinner prepared by a well known local chef. 

Again, these are all just examples, but the possibilities are endless here. Just start brain storming with your auction committee and pick whatever sounds most fun to you. Contact me if you want to my professional feedback. I will be honest, because I want your even to be as successful as possible.

Must Have Live Auction Item #1: Trip

In previous posts, I have offered the importance of including a variety of types of items in your live auction and listed 5 that should be included to create a well rounded live auction. Now, I am going to go through each category in more detail with the goal of inspiring you and your auction committee as you solicit items for your live auction.

The first item we will focus on in detail is Trips.

When looking for a trip to include in your live auction, you can include a local destination (something in your home state or a close state that bidders could access by driving), a non local destination (someplace to which they would need to fly), or both. For the most part, I would not include more than one of each in the same auction line up.

Things Good Trips Have: 

Open availability. Meaning the winning bidder can plan their trips selecting from a wide variety of dates throughout the next year.  It's okay to have 3 or 4 weeks through out the year blocked off, but other than that they dates should be relatively open.

WOW Factor. People aren't going to pay top dollar (or likely even bid) on something that doesn't have a special appeal to it. Some WOW factor examples:

• Home owned by a celebrity  
• Home on Ocean with gourmet outdoor kitchen
• Home in Central America which included full staff of maids, personal chef and butler for the week
• Unique home such as a treehouse
• Resort which is frequented by known celebrities

Experience is included. The trip includes more than just a place to stay. Examples I've sold:

• Napa trip which includes wine tastings at several vineyards
• Trip to New York with the opportunity to see a late night show and have a meet & greet with the host. 
• Travel to an out of state professional sports game on the team's airplane with the team.

Things Bad Trips Have: 

Limited availability. Want to make sure no one bids on your trip? Offer it for one week out of the entire year. Just because an item has a high "value" does not merit it to be on the live auction. We are looking for items with a broad appeal, one week out of the year is not a broad appeal. I would allow certain exceptions like if somehow you got a box with Madona AND Prince at the Kentucky Derby and it is obviously only available the week of the Derby. Otherwise, I would recommend taking your week in Florida through aunt Cindy's timeshare off the live auction. It doesn't belong there.

Off Season Availability. You will find many donors who are willing to give you donations for their off season. Win for them because it's a tax write off for the time a year they won't be filling their spaces anyway. No one wants a ski trip between April and August.  

What about airfare?

You may notice that I didn't mention anything about airfare in either section. I'll follow up with another post in the future about this topic in more detail, but the short: including airfare does not bring you it's value in revenue nor does it hurt an item's popularity if you don't include airfare in the package. Look back later for deets on this or just email me your specific question regarding this and I'll be happy to give you more insight. 

5 Types of Items You Should Have to Create a Dynamic Live Auction

Over the next several weeks, I will go into detail into examples of these types of items, but for now, I want to introduce the 5 types of items they should incorporate into their live auction.

1. Trips

This could be anything from a trip to a B&B 45 minutes away from your town or it could be a luxury condo in Mexico. I usually like to see a local vacation (something that the winning bidder could drive to) and a travel vacation (some place further away that is different from their local area...beach...ski vacation...Europe...etc).

2. Meal/Dinner Party

People love these items. It could be anything from a chef created meal in the winner's home or an exclusive specialty chef's dinner at a hot restaurant in town. These are great experiences for multiple bidders to go together on a great item. 

3. Unique Experience

A "Unique Experience" is something that people can't go and recreate on their own or buy from another vendor. These unique experiences are something that they only get because they are supporting your organization. This one is all about who you know and getting creative. I would recommend sitting down with your staff, board members or auction committee and have a meeting committed solely to brainstorming who they know and out of the box ideas. Remember there are no bad ideas in brainstorming.

4. Alcohol

People eat up (or drink up) these items. This could be an exclusive brewery tour (not one that they could normally sign up for) where they are involved in the creation of a small batch beer, or you could sell a "Wall of Wine," or a wheelbarrow of booze, or an exclusive wine tasting experience. The possibilities are endless. NOTE: This one is not appropriate for many organizations, so keep that in mind if it goes against religious beliefs or if you support recovering addicts. Please know I would only recommend this to you if it did not conflict with your organization's values.

5. Sports

Bidders love the opportunity to support your cause while being able to enjoy their favorite teams. This could be anything from a sports package with a couple tickets to one each major sports teams' games to a meet and greet with a popular player or even a signed jersey. 

For more ideas...

Keep checking back because I will be covering these items in more detail in the next several weeks. You can look for them on my social media accounts where I publish all of my posts as soon as they are ready.

If you have any questions, don't hesitate to contact me through the form on my sidebar. I look forward to hearing from you.

Why Having a Varied Live Auction Lineup is so Important

Over the next couple months, we are going to explore live auction item ideas. One big priority for me as a fundraising auctioneer it to ensure that my clients have a varied live auction line up, but before I unveil the items, I want to discuss why it is important to have a varied live auction.

Having too many like-items lowers each item's value.

It is so important to have a varied live auction lineup because it creates competitive bidding. It may seem amazing when your committee comes to you with news that they have secured not one, but two trips to Mexico, a condo in Costa Rica, a resort in Disney AND a B&B in Ireland, and you are not wrong for being exited! However, having 5 trips in one live auction will lower the value of each trip significantly. Knowing they have another trip coming up, their incentive to keep bidding goes down. Unless all 5 trips are completely different and unique opportunities that they could not find absolutely anywhere else, the bidding will lose its competitive edge.

Variety provides opportunities to engage as much as the audience as possible.

This is key. You want you live auction lineup to engage as many people in the crowd as possible. The sports lovers, the animal lovers, the wine lovers, the beach lovers, the mountain lovers, the book lovers...you get the picture. If they don't have something they see in your program for them, you are going to lose their attention. Why is this bad? Because when they aren't paying attention, they are either leaving or talking. If they leave, they are not going to participate in other major revenue generating activities (like the fund-a-need, and if they start talking, they will become incredibly distracting and you are at risk of losing your entire audience's attention. 

Variety is fun.

Duh. People like variety. They like to be on their toes. They like to see different items and feel engaged and energized and variety of auction items will help create a buzz! Remember, the more fun they have, the easier it is for them to give.

Having Reserves on your Live Auction items

When soliciting items, you’ll come across certain “donations” that require a reserve, or a minimum bid, to sell the item. Now, although having reserves on your items is not ideal for your fundraising auction, it happens and it isn’t all bad. There are several reasons that an item could be assigned a reserve:

1. Your organization had to pay a firm dollar amount (though lower than retail value) to have this item at auction. There are companies that will “donate” extravagant items at wholesale prices to the nonprofit. The reason you need a reserve on these items is to break even! Avoid these items. Say the reserve is $2000, and you raised $2500, your organization only raised $500 for this item. You may say, “YAY!!! $500 is better than nothing.” The bad news is that you had a donor in your audience that evening that just gave $2000 to another company when they were intending to give it to your organization.

2. On the other hand, there are companies that will donate items to organizations and take a percentage (say 30%-50%) of the money earned. These sort of donations are MUCH better because your organization has a greater chance of raising more money on the items, and they are usually worth it because of the unique nature of the items. The reason that there are reserves on these items is because usually the donor knows the value of the items and is concerned about using their donations wisely – ensuring that they are actually raising organizations money rather than just practically giving away once in a lifetime opportunity.

3. Sometimes artists will put minimums on their work so that they maintain their own retail value. This is something that we need to respect. They’d rather have their work not sell than go for something below what it is worth. Again, this is a fundraiser – not a time to get good deals.

If you have items that have reserves on them, please reach out to me and I’d be happy to walk you through how to handle the reserve.