Determining Donation Levels for your Fundraising Appeal and Securing a Momentum Donor

Doing a Fund-A-Need or any sort of formal ask for donations at your fundraising event can be intimidating. How do you know if someone will bid? Where should you start it? What if no one raises their hand? Don’t worry, I will not let this happen to you!

Determining Donation Levels for your Fundraising appeal.

First, you need to decide how many donation levels to have. There are a couple amazing mobile technology companies I get the pleasure of working with, but there is one called Auction Harmony based in Minneapolis who I think just has the most beautiful donation display on their Kindle Fire Tablets. There are 9 spaces. That is for 8 donation levels and one "other" section. This is a great rule to follow whether or not you are using technology for your fundraising appeal.  

So how do you determine your levels?

The first way, is by assessing who you have on your guest list and determining their donation levels.

If your organization has never received a donation over $5,000, you are not going to want to start your initial donation at $20,000. Does that make sense?

Securing a momentum donor 

You are going to want to identify a few donors who have potential to be your highest level donors and approach them about being momentum donors during your fundraising appeal

If this is not your first fundraising event, you can probably get by with looking only at the records from previous events. Who has given a large amount in the past? These would be the first people I would talk to. However, you are also going to want to consider donors who gave at other times throughout the year, because they clearly care about your organization, and you could provide them with an opportunity to inspire others to give by being a momentum donor. 

I understand how hard these conversations can be to initiate, but trust me when I say it is worth it and you will probably want to queue your major gifts officer in on this because they are skilled at having these conversations. You will want to thank the donor for their previous contribution. Then you will want to make sure they are planning to attend your event and explain the amazing project your guests get to fund at this year's event. Explain that you are going to fund it in one evening, and that it's going to be exciting and create a ton of energy, and ask them if they would want to be the hero to set the tone for the evening. Be transparent about your goal and include them in on the strategy and how impactful a momentum donor can be. It is so exciting for the audience to see that first hand go in the air quick which sets an expectation and excitement over generosity. This donor has the unique position to be able to create that, if they an commit to giving at a specific level that you decide with them in the meeting. Then it is important to ask if they would like to be recognized by name and make sure you communicate that to your auctioneer in advance as well as tell them exactly where the donor is sitting so they recognize it when the hand goes up! 

Frame this as an opportunity to start something amazing. Because you are reaching out to donors who have given in the past, your success rate should be fairly high. 

After you've had a couple of these conversations and have determined what the highest amount someone has committed to in advance, that is a good place to start. Hopefully you have a couple of people at the first couple of donation levels to get the show started. Once other potential high level donors see the applause and energy around this donation, it is likely you will receive a match at these levels.

Say your highest commitment is $10,000, I would recommend making that your highest level. Then go down 7 more levels after that: 

$10,000
 $5,000
 $2,500
 $1,000
 $500
 $250
 $100
 $50
Other

The reason, you ideally want to start where you have a committed donor is because when you start too high and have no donors, it kills momentum, which kills energy which discourages giving in other levels.

The fundraising appeal is a momentum game.

Every part of your program should be strategically leading up to this point of engagement, then BOOM! You get a donor right away and it is a domino effect. More hands fly in the air or everyone whips out their phones to secure their donation and see their name on the screen. 

If you don't have a starting momentum donor and have no idea where to start, try starting at 10-20% of your total goal and break it down from there, again I highly encourage you to brave these conversations. They may feel uncomfortable, but focus on the donor and it will take the pressure off you and make it more exciting for them to commit. You will be so glad you did this!

This should give you a good start on determining donation levels for a profitable fundraising appeal. If you have any additional questions, please share them below. I would love to answer them. 

How to Pick a "Need" For your Fundraising Appeal

Today we are going to cover How to Pick a "Need" for your fundraising appeal. 

This is often why we call it a "Fund-A-Need" at events. 

First, let me do a super brief history of the fund-a-need: 

Once upon a time, people had fancy pants galas and they brought in an auctioneer with a cowboy hat and bow tie who looked sharp as hell who sold 10-12 auction items. This meant 10-12 people got to be donors for the evening, and the other 478 people were chumps who just got to eat a chicken dinner and enjoy the open bar. Then one day, the auctioneers said, "hey, we're missing out on some money here, because the losing bidders still have some cash in their pockets." So after their auction, they would say something like, "hey, if you didn't win anything, you can still give money." And the fund-a-need was born. Fast forward 10-15ish years, the fund-a-need is the bread and butter of every event.  

Now, you should also know MY personal fundraising philosophy.

I believe that every single person wants to feel impactful. They want to know that at the end of their life, their existence made a lasting difference in our world. I believe it is our job as fundraisers to give them that opportunity. The opportunity to make a meaningful difference. When we begin to look at fundraising through this lense, it becomes just as important as the work you do directly through your organization, because it allows us not only to serve the people (or animals, or environment, or whatever it is you serve), but it also allows us to serve your donors, but giving them a genuine opportunity to make a meaningful difference.

With that in mind, why should you pick a "need" in the first place? Why can't you just raise "as much money as you can" towards your general fund? 

This is a great question that I get all of the time. So let me address it.  

Your guests are more likely to give if they can tangibly understand who or what they are helping. You may do great and amazing world-changing work, but if your guests do not understand what they are funding, they will not give. It's that simple.  

Let's simplify it for them so they don't have to think about it. All they have to do is raise their hand. 

Select a "need" that is inspirational.

If you can make them cry, that's perfect. Inspirational may seem obvious, but it is a key characteristic to conducting a successful fund-a-need. If your need, isn't that "sexy" try looking at it from a different angle. I had a client two years ago, who had to build a bathroom facility in a Haitian Village they serve. Toilets are definitely not sexy, but rather than focusing on all of that crap, we focused on human dignity. We focused on the jobs it would create to build these bathrooms. They shared stories of what it was like to go to the bathroom in that village. Using a toilet in private is something we all take for granted here in the US, but they showed their audience that they could provide a sense of dignity to the people of Haiti. Because of this inspirational take on the least sexy subject ever, they were able to build the bathrooms. And when the hurricane hit the following fall, it was the only facility left standing, which was a testament to the heart and quality they put in to this project, which made it even easier the following year when we had to rebuild the dormitories for this community.

Give them a "need" that is financially transparent.

They should understand where their money is going and that it is going to directly impact lives or make this world the kind of place they want to live in. The majority of your guests have a limited amount of resources. If this is not you, you are #blessed. But for most nonprofits, you know that charitable giving is competitive, and you have to prove to your guests that you are going to use their funds wisely.  I'll use the potty example again. This organization is 100% volunteer run out of someone's home, so they were able to share that. The donors knew that all of their money would be an act of love as they provided a sense of dignity to this Haitian Community. You are probably not a volunteer-run organization and that's okay, because you are able to commit more time and energy to the work you do. I encourage you to find a project or a need that will use 100% of their gift towards affecting change or solving a problem. Then reassure them that their money will be going directly to this project. It doesn't take much here other than something like, "100% of the money you give tonight will go directly to fund scholarships for young women in the Congo." And then follow up with them with updates about the young women they impacted. This is their reminder that they did well and that their contribution made a difference.

Your "Need" should be achievable.

This means that you need to fund it in completion that evening. Assuming the number of attendees you plan to have stays the same year over year, shoot for a project that is approximately 10-20% more than you raised last year. I will circle back to the bathroom example. They decided to fund it by breaking down the costs of the facility. I don't always recommend it, but with building projects it makes the giving super tangible. The frame and roof will cost $10,000, the labor will cost $5000, the sheetrock will cost $2500, the tile costs $1,000, a toilet costs $100, etc. For this group, since they did not have a "momentum donor" which I will talk more about in detail next week, I would try to find 10 people to fund the frame and roof at $1000 a piece and go from there. It works for this group. What I would generally recommend is being clear about the cost of the project as a whole and starting higher at $5,000 and go all the way down to $25 explaining that $25 will fund a day of work for one person, so that those $25 donors know how impactful their donation is.

I bet you didn't think I'd use a bathroom project as a good "need" to select. I'd love to hear what you have funded in the past! Let me know in the comments. Also, if you are working on framing your fundraising appeal right now and are trying to decide which way to go, share that and we can work as a community to give you feedback and ideas! It's all about how to inspire your donors this year! 

Market your Live Auction Items before the Event

You have spent so much time and energy getting ready for your BIG fundraising gala. You’ve secured some kickass items that you think people will really LOVE, now you just cross your fingers and hope they bid (or expect your auctioneer to work some voodoo magic on them to make their hands go in the air). Here’s the deal, sometimes people spend the big bucks without any planning or forethought, however I can guarantee you that you’ll make so much more money on your live auction if you Market the items before the event happens.

Just think of the last major purchase you made. Maybe it was a car or a vacation. You likely did not do it on a whim (if you did, we could probably be best friends). No, you thought long and hard about what you wanted and how much you were willing to spend on it. Your gala guests and donors are no different.

You must absolutely market your Live Auction items before the event. 

This may be obvious to some of you, but you'd be surprised how many events I've shown up at where the guests had no idea what was on the Live Auction that night. 

Start Soliciting your items early

One reason most organizations don't market their items is because until the last minute, they have no idea what they are. As soon as you think about planning your event and setting a date, start talking about live auction items. Brainstorm them with your team and take action on pursuing the items. 

Get firm commitments and all the details from your item donors ASAP

As soon as you think you have an item. Close the deal. As soon as you have the firm (hopefully written) commitment from the donor, get all of the details including pictures, dates, etc so you can start an item write up early on in the event planning process. The more you know ahead of time, the more effectively you'll be able to market your items during the planning process. 

Feature the items in the Save-The-Date

Because we are focusing on spectacular items that are exclusive and offer a broad appeal (see my video from Monday if you aren't sure what I'm talking about), you are going to want to tease your guests with these items from the moment they think about the event. This will help them to prepare accordingly. If they are already thinking about taking a trip in the next year, they can plan to bid on the trip in your auction.

Help them remember the items are 100% for a good cause

I welcome you to use tag lines like: 

"A trip that's for the kids, except you don't have to bring your own." 

"A dinner experience that feels as good as it tastes." 

Ths is a playful way to remind them that while they are getting amazing items, they are also supporting your organization. It's more than a large purchase. 

Share the items in your email and social media communications leading up to the event

The two weeks or so before the event, send out emails and social media posts featuring the items. You want your bidders to be thinking about these as they plan the budget for the evening. Whether you like it or not, everyone comes to your event with a budget in mind, but you can help them determine whether they will spend their $5,000 at your event or at the one the following night, by letting them know what you have to offer.

If you are sending things via social media, share it multiple times because everything moves so fast online and you don't want anyone to miss it. 

Feature them online through your mobile bidding website

Even though bidding is not available online for the live auction items, you should still list it on your mobile bidding website. Most companies allow you to have items that aren't open, but you can list a picture, description and all the nitty gritty details for your guests to view before they arrive. 

Some organizations mail out programs in advance. This can get expensive because most people forget to bring the program to your event, so you have to print twice as many. This is a great alternative.  

Keep marketing them the night of the event

Most of you know to have a clearly marked display of the live auction items where everyone can view them. While this is so necessary it still doesn't give people all the time they need to read all the details they need to make an informed decision. All of the items should be listed and described with all the details in the program as well. 

Get creative

I recommend printing the live auction items and putting them on the doors of the bathroom stalls and by the line at the bar. This is a perfect place where you have a captive audience to view the items.

Why this is so important: 

You want your guests to come to your event with the decision to bid so that you can leave it up to your auctioneer to get them to give beyond their budget.  

It is much more impactful to get more money out of a guest who already decided they wanted the item. They've been thinking about it for weeks and will be disappointed if they don't win it. Compare this to springing live auction items on your guests and expecting them to drop $1,000 let alone $10,000+ without any prior thought.  

Get those live auction items out there before the event, so that your guests come to the event ready and excited to bid. 

The 5 Items You Need on Your Live Auction

It's important that your Live Auction has variety

If your live auction is all trips, they will not sell well. If you have 6 trips, it is unlikely there are 7-12 people in that audience who want them enough to bid them up. It's basic supply and demand. Not to mention it gets super boring for everyone involved

Here are the 5 items you should include in your live auction (in order of importance) 

1. Unique Experience

This is something they can't get anywhere else. This is super important for any crowd, but especially if you are hosting an auction for millennials because research shows (and in my experience), they are more likely to bid on an experience than on a physical item. The great part of this is that most of the experiences you can offer, require creativity and not money to produce. A couple examples that I have sold are: 

Sleepover/Lock-in at the Children's Museum. Opportunity to conduct the professional Orchestra. Unlimited access to 30+ collector cars for an entire summer. A tour of Jay Leno's private garage. Tour of a Private Wildcat Sanctuary. The opportunity to fund a refugee business. Beekeeper for a day.

2. Dining Experience

These sell so so well! People love great dining experiences. Usually the actual retail value of these are under a thousand, but they usually sell for several thousand dollars. 

You can approach this several ways. 

A Chef dinner in-restaurant experience. This is really amazing if you have a new and hot restaurant that has been getting rave reviews and reservations are hard to come by. A Chef dinner for 8-12 with wine pairings. This should a special menu created for this experience, interactions with the chef and be a very special experience. I have sold several where the guests would be in the kitchen or the wine cellar for the meal. This is a several thousand dollar item

Dinner in a prominent person's home. This experience would be if your founder or a public figure wanted to host a dinner party in their home. They could cook themselves or bring in a chef of some sort to their home. Guests love getting quality time with people who are usually quite hard to get an audience with.  

Dinner Party in the winner's home with a personal chef. This is where a chef (professional or a passionate amateur) would come to the winners home with all the food and prepare a meal for 8-12, including adult beverages, and then they would clean up. I have seen this go for thousands of dollars at small events where a teacher or board member is the chef for the night. It doesn't need to be a professional. It just needs to be a likable personality who can cook a good meal.

3. Trip

This could be a local trip or a fabulous dream destination. Either way, people love a get-a-way. Truth be told, local trips have been selling much better over the past couple of years. I'm based in Minneapolis and it is not uncommon for a cabin on the North Shore for a weekend to sell for more than a week long trip at a luxury villa in Mexico. 

Donated airfare is hard to come by these days, so don't let that hold you back from putting up a great trip. In my experience, the airfare doesn't bring much more revenue to an item, so go ahead and sell the trip without airfare.

My only rules for selling trips:

Must have open availability or at least flexible availability. Meaning, it is available for more than just one week out of the year. 

No Time Shares.  This falls in the same spirit as the first rule, but also they are just a pain in the neck to coordinate. No one wants to buy your timeshare. It's not a good donation. Just don't do it.

4. Sports Experience

This could be a wide variety of things. Great seats to a highly anticipated game. Meet and greet with players. If you received a ton of random sports tickets, you could package them all together in a "Year of Minnesota Sports" package. If you have signed items, make sure they are from athletes people care about. Michael Phelps signed photo = Great! A B-String Athlete who no one has ever heard of = Bad.

5. Alcohol Experience

This usually hits a broad appeal. This can also tie in with the meal experience. Brewing or winemaking experiences are fun. I've also sold many "Walls of Wine" where the board members and liquor stores all come together and donate a bottle of wine and you can sell it as a collection to the winning bidder. It offers a broad appeal which makes this a good item to start or end the Live Auction with.

DISCLAIMER: If your organization has any affiliation with addiction or you are a religious organization that does not condone alcohol consumption, this item is NOT for your group. There are so many more amazing items you can add to your live auction to ensure it is varied and engaging without including an alcohol-related item.

What do you think?

How does your current Live Auction line up compare? 

I hope this gets your juices flowing so that you can be ready for brainstorming some great ideas for your event!

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 ->