Fund-a-Need

How one nonprofit raised 50% over goal at their golf tournament

How to raise more money at your fundraising event | Sarah the auctioneer

What if you could raise more money at your next event? What would that mean to your organization? Just think of all the amazing things you could do!

Like you, Lift Up, was grateful for their sponsor who chose them as their nonprofit of choice for their annual golf tournament. They were bringing in some extra money for their organization, but saw so many opportunities where they could engage donors better and raise more money so they could make a greater impact. This volunteer-run organization gives away 100% of the money they raise and tackle issues all over the world meeting the needs of people most other people don’t even know exist.

This year they set an ambitious goal of raising $80,000 to build a school in Peru. This was more than they had raised in the past, but they set themselves up for success so they thought they could do it. And they did, plus an extra $42,000 for a total of $122,000 raised!

So how did they raise 50% above goal at their event this year?

  1. They took control of their event

    Instead of the golf event being a corporate event with a nonprofit benefactor, they turned it into a nonprofit fundraiser with a corporate sponsor. This allowed them to have more control of how the event was managed.

  2. They invited the right people

    With having more control of their event, they were in charge of the guest list. So instead of stacking the room with corporate employees who knew nothing about them, they invited sponsors and business leaders in the area and created a higher end experience for the people who attended. If you are having a more intimate event and are unsure who to invite, check out this post I shared on hybrid events, but is totally applicable to any event where you need to be picky about the guest list.

  3. The educated guests before the program started

    They had very short videos (less than 30 seconds) playing in the golf carts that would turn on when golfers pulled up to certain holes. This helped remind guests WHY they were there and educate them on the mission and the goal for the day. This helped keep golfers from being surprised when they showed up to the dinner and were asked to partner with them.

  4. They added a Fund-A-Need brought in a Fund-A-Need Expert

    They brought in a professional auctioneer who’s expertise was in the Fund-A-Need ask. Yes, me. I’m the Fund-A-Need Expert. I was able to consult with them before the event to walk through their program and help them create a timeline that ensured we were doing the Fund-A-Need at a time when guests were most engaged. We had to make sure they were fed, but not lethargic. Energized, but not too drunk. So we created a short and sweet (5 minutes) lead up to the Fund-A-Need featuring the organization’s founder and then I stepped in and facilitated their very first Fund-A-Need, which raised $45,000 in 10 minutes. At this point we were at $85,000 for the day, but had not considered auction totals yet.

    As a fund-a-need expert, I’ve learned exactly what audiences respond to and how to build connections to the organization. This allowed me to take the key points and data shared by the founder and make it personal. Rather than $68,000 to build a school for a 1,000, I asked them to send 10 kids to school for $680, which had hands in the air faster than any $500 ask could have done. I was able to take their mission and make it personal. This allows for an ask that is shame-free and inspiring. Guests left the event feeling accomplished and impactful - which they were.

  5. The had very specific goals

    Going into it, they were not just going to “see how much they could raise.” But instead, they picked 3 projects they wanted to fully fund, which came to $80,000. As we got closer to closing the gap, the audience was not willing to give up. As we surpassed our goal during the Fund-A-Need, I asked what other projects we could fund, and used those as new benchmarks for the audience as we moved into the live auction and closed out the evening.

Mission Success

Bringing in a Fundraising Auctioneer and Fund-A-Need expert will most definitely raise more money at your event, but the only way to have true success is to do the leg work first. The room needs to have the right people and they need to be prepared and educated about your mission. So how can you make your next event profitable? Consider these questions:

Does this guest list have capacity (or interest) to give?

How are some ways I can share our mission with them before the event even starts?

Do I have someone who can clearly communicate our mission and make an impactful ask?

Start with these questions and go from there.

As always - Happy Fundraising!

How to capture donations at your Fund-A-Need

How to capture donations during your fund-a-need or fundraising appeal at your charity or fundraising event | fundraising auction ideas | fund-a-need tips | how to plan a fundraiser | hosting a successful fundraiser | sarah the auctioneer

The Fund-A-Need (or fundraising appeal) is the biggest moment of your gala. Every part of your event should be pointing and building momentum to this moment. This is when you ask the guests to join you in your mission through a financial contribution. If you’ve done all the right things, your event will be successful.

However in order to make sure your donors follow through on their commitment, you need to have a thought out system in place to ensure that you properly capture the donations.

How do you capture donations during your fundraising appeal or fund-a-need?

Traditional Paddle Raise

The traditional paddle raise is the most common and traditional way to conduct your fundraising appeal, and it's how most auctioneers like to do it because it's easy to control and explain to the audience. This is where the auctioneer or whoever is conducting the Fund-A-Need calls out donation levels and people raise their paddle at those levels. 

There are 2 ways to capture donations during a traditional paddle raise. 

Read each bid number out loud.  

Pen & Paper Method

This sometimes takes a long time, so if you have more than 500 people in your crowd, it probably isn't the best way to capture these donations. With that being said, there is something amazing about the momentum it creates as I walk around the room calling out those numbers and thanking each bidder individually.

When I conduct a Fund-A-Need this way, I always thank each bidder. I do this for two reasons. First, every donor deserves to be thanked because their contribution is so important. Second, saying "thank you" between each bid number gives the recorders a moment to write down their number. Many auctioneers rush through the numbers because this part can take a while, but if they go too fast, numbers are missed and donations are not captured.

You will need several (3-5) volunteers writing down the bid numbers at each donation levels so you can cross reference their records and make sure no one gets missed.  

Utilizing Mobile Bidding Technology with this method

This takes a very talented, detailed and quick-typing volunteer to achieve. As the auctioneer reads the bid numbers out loud, the volunteer types them into the system live. This provides the momentum of reading the numbers out loud, while also being able to track the amount live on the screen. 

Refer the donors to a donation card on the table

With this, the auctioneer would do a traditional paddle raise and thank the donors as their hands fly in the air. After the auctioneer gets through all of the levels they would say "Thank you for everyone who committed to make a difference tonight. To follow through on your commitment, please fill out the donation cards on the center of your table."

This can be a nice method because the auctioneer can calculate the amount that is being raised in their head as they go. This helps with the auctioneer know how much has been raised so that they can adjust how they need to enhance their ask as they go. An experienced fundraising auctioneer knows how to work a room as needed for this.

Utilizing Mobile Bidding Technology with this method

If you want all our donations captured through mobile bidding, but also want to maintain your traditional paddle raise, you can have your auctioneer announce at the end of the Fund-A-Need that they can follow through on their commitment on their phones. NOTE: they need to announce it at the very end of the Fund-A-Need because the moment you have some people raising their hand while others are just entering numbers on their phone, you've lost momentum which means you've lost money. 

Want to get fancy and use Mobile Bidding? 

Oh man, I LOVE mobile bidding. This is where we are moving and you need to make sure your auctioneer is on board with this. I know many of my fellow auctioneers who don't love to use it and prefer to use the traditional paddle raise, which is fine because like I mentioned before, there are ways to integrate mobile bidding into a traditional paddle raise. 

Tips for a utilizing mobile bidding technology successfully

Focus on 100% participation over donation levels

Because you likely won't have people raising their paddles at different levels, encourage your donors to give at any level as long as they give. I usually say something like "it doesn't matter whether you give $1 or $25,000 today, what matters is that you make the decision to be a part of the solution by pulling out your phone and taking action right now." 

You are still going to get your $25,000 or $10,000  donors who planned for that, and if you had a compelling introduction to your Fund-A-Need they may even give more than they budgeted, but with this method you are going to capture donations from all of those low level donors who weren't planning to give. There are actually studies about the psychology behind this that I can get into another day, but basically giving them a low risk option of $1 compels them to take action, but then they don't want to be perceived as cheap, so they rarely actually give just $1. 

Again, your auctioneer has to be on board with this. I have spent a lot of time studying the phychology behind this and applying and honing these methods, so I am very comfortable and love doing it this way. 

Make sure everyone knows how to access mobile bidding when they check in

Make sure everyone is signed on to mobile bidding at check in. Most systems text bidders a link. For best results, have them sign in right there with your check-in volunteers otherwise many people will put it off and never actually sign in. If they are signed in before the Fund-A-Need begins, they will be ready to pull it out and give. It can take a while for people to get signed on, which means it takes a while for those numbers to go on the screen, which means that the momentum slows down. That can be really rough for your final numbers.  

 

Give step by step instructions on how to give

Have your auctioneer walk your guests through the donation process on their phones. It helps to have screen shots on a page in your program and on the screen as a visual guide. Now only do your guests need to be clear on why they are giving money, but they also need to be clear on how to give their money. As soon as something becomes unclear, you lose money.  

Make sure your server and wi-fi have the capacity for your group

In a world of unlimited data, people will still want to use wi-fi to use their mobile bidding. I will tell you that most venues are not designed to have 1000+ (or even 200+) people on their wifi system all at the same time. You will want to plan to bring in reinforcements for this. It will be an additional expense, but it is better than all of the money it will cost you when your wifi goes out and no one can give and you lose their donations. Some mobile bidding companies, like Auction Harmony, actually bring their own modems and wifi and understand the technology necessary to make your event successful. Even if your mobile bidding company doesn't provide this for you, I encourage you to get their recommendations and follow their instructions on this. They are professionals and know exactly what you'll need for your event. 

Do a test run before your event

I did an event with mobile bidding last fall and the guests were all putting their donations into their phones, but nothing was showing up on the screen. It was the most painful fund-a-need ever. It took about 5 minutes to get the numbers on the screen at which point we lost a ton of momentum. We ended up hitting their goal and breaking personal records for this group anyway, but it definitely lost a lot of power and momentum because of a technical difficulty. Test this before your guests arrive. Make sure the donations are being properly represented on the screen so that when the real Fund-A-Need comes around, you don't have to worry.  

Determine if your demographic is right for mobile bidding

While it seems that everyone has a smart phone these days, that is not true. If you have a group that is millennials through baby boomers, you are probably safe with mobile bidding. However, if your group is mostly early baby boomers and older, you may want to stick with a traditional paddle raise for their group. Younger generations feel at home with their smart phones and actually feel weird raising their hands during a traditional paddle raise. Talk to your auctioneer about the demographic of your guests because they will help you determine what is best for your group. 

Do not mix a traditional paddle raise with mobile bidding.

You must choose which method you are using because once you have both methods going, I guarantee you will lose momentum and therefore lose money. When mobile bidding first came out this is how most auctioneers handled it, including myself. It was awful! Some people raised their hands and wrote checks, while some savvy bidders put their donations in their phones. Then they would put the thermometer on the screen and it would be so disappointing because it only showed half of the actual donations. This low number did not motivate guests to give and meet the goal. Instead it discouraged people to bid, because they perceived the goal could not be met. Trust me on this. Using both methods together does not work. Determine which method is right for your demographic and stick with it. Strategize specifically for the guests at your event and you will be successful.

 

5 Things that are a Waste of Money at Your Fundraising Event

5 things that are a waste of money at your fundraising event. These items are not only expensive, but they offer a significant opportunity cost which could cost your organization thousands in donations | how to plan a fundraising event | fundraising…

So you’re planning a fundraising event to raise money for your nonprofit, and you want it to be amazing AND profitable, right? I want that for you so much too! A great event is one that guests love and want to keep attending year after year and that they want to GIVE to each time (and hopefully become donors outside the event).

There are a lot of things I’ve seen organizations do to “beef up” their event in hopes that they will make it more appealing to guests, or to draw guests to the event and end up losing money on their event. Not only because of the actual cost of these things, but also because of the distraction from the organization’s mission (which costs money in lost donations). While there is nothing wrong with spending money on these things for your event, I have seen these things take away more value (and revenue) from an event more often than I’ve seen them ADD to it.

  1. Celebrity Emcees

    Celebrity emcees are a popular addition to an event. I value the work of an emcee so much. They help keep the flow of an event and make transitions smooth and are a steady face throughout the night to keep guests engaged and make sure that everyone knows what is going on at all times.

    That being said, paying a celebrity to “host” or “emcee” your event is not going to bring you more revenue, unless they have a close affiliation with your organization. I did an event recently with a couple of local radio hosts as the emcees, but they did not have a close affiliation with the organization. Their jokes did not land and there were a lot of awkward and uncomfortable moments through out the night. They became a distraction and took away from the momentum of the evening which is so important with fundraising.

    Who are good options for Emcees?

    1. Local Newscasters are AMAZING emcees. Yes, they are technically a “celebrity” but many of them will host events for free if they have an affiliation. What I’ve noticed about them is that they can follow a script well and they know the value of storytelling so they can tie anything back to the organization’s mission. I’ve never had an experience with an ungrateful newscaster, but I do notice them go under-appreciated for their time and talent at some events. If you can get a local news personality to host your event, allow them a guest and tickets to your event and don’t forget the thank you note!

    2. Someone within your organization! This goes overlooked, but you probably have someone in your organization who is charismatic and energetic enough to host the event for you. Some of my BEST emcees have been staff or volunteers from the organizations. They know everyone who comes to the stage and are passionate about the work being done. They communicate your mission better than anyone.

    While a “celebrity” emcee may get people into the room, they aren’t going to get the money out of their pockets and they may even distract from the mission.

  2. Fancy Themes

    Themes are a fun way to get people engaged in an event, but there is a fine line between engaging guests and distracting them. Fancy, overdone themes can not only distract from your organization’s mission, but I’ve seen nonprofits shell out big bucks on decor, entertainment and venues that made for a fun event, but did not bring any more revenue to the event.

    Will fancy themes always lose you money? Of course not. We see huge organizations all the time that have themes and their events are incredibly profitable.

    Here are some things to keep in mind when considering having a theme for your event:

    1. Weigh the costs. Will the cost to execute the theme bring in more revenue or attract the right type of people? Can you offset the cost with a higher ticket price and create a more exclusive event that attracts a higher level of donor?

    2. Consider creating a theme that reflects your mission! I work with a Wildcat Sanctuary that has themes each year that reflect their Fund-A-Need for the year. One year the theme was a white party where everyone wore white and then during the Fund-A-Need we raised money to rescue some White Tigers from an abusive situation. Instead of being a distraction, the whole theme reminded people WHY we were there. These are the types of themes that work really well.

    3. How well do your guests know your organization? If you have a lot of devoted donors attending your event, a theme may be a fun way to unite them. However, if you have a primarily newer group of people, I recommend hosting events that focus on your mission and the demographic you serve. People should walk away from your event connected to YOU!

  3. Hired Keynote Speakers

    Keynote speakers can draw a certain crowd, but think through all of the details before hiring a keynote speaker. I’ve seen some do a wonderful job, but more often than not, there are problems with Hiring a Keynote speaker. Here are the most common problems I see Keynote Speakers adding to events:

    1. They talk too long. During a fundraising program, you have to keep the night moving along so people don’t get bored. Most keynote speakers have talks that are 45-60 minutes. The nonprofit will tell them they have 20 minutes, and the Keynote speaker will either say “that’s fine” or they’ll say they can’t do it in 20 minutes and either way, they are almost always going to talk longer than they have budgeted. Remember at a fundraiser, time is money. As you start to lose attention, you will also lose revenue.

    2. They plug their own mission instead of YOUR mission. While it is so easy to find a Keynote speaker that represents they type of work that you do, I have rarely seen a speaker come in and be able to accurately promote an organization’s mission. They talk about their own experience and their own work, and rarely do a good job of tying it back into the organization that hired them. This distracts from the mission. I’ve even see keynote speakers plug their own nonprofits at events which makes it very challenging to go and raise money for THIS organization after they spent 30-45 minutes talking about something different.

    3. They are expensive. Keynote speakers get paid to speak, and they do not come cheap. They will likely run your organization $10K-20K+ to hire a professional, desirable speaker.

    Who should speak instead?

    My recommendation is to have someone internally talk about the organization. Maybe it is the Executive Director, or a staff member. Try having a testimonial from someone your organization served. Or, instead of spending money on a keynote speaker, hire a professional videography company to come in and make a stellar video that tells your organization’s story. It will be engaging to the audience and it will also be an asset you can use on your website and will bring you much more revenue.

  4. Entertainment

    Are you seeing a theme here? Anything that will distract from your mission, is going to lose you money. Entertainment is not bad, but you need to ask “will this bring us more revenue?” I am all for entertainment during the cocktail hour or after the fundraising is accomplished, but the entertainment you hire should not take up the prime time in your program.

    Your live program should be very strategic in leading up to your Fund-A-Need in order to build momentum and bring in the most revenue for your organization. Hiring entertainment for the sake of entertaining your guests, can risk distracting from your purpose for the evening. Now, if you have music or some other performing arts as a part of your mission, your whole program will probably be entertainment which is perfect because it continues to bring the audience back to your mission.

  5. Open Bar

    Does this one surprise you? There is an idea that people have that if their guests have a couple cocktails, they will loosen their purse strings a bit. While, this may be true (though there is no hard evidence to support it), there is a fine line between a couple cocktails to loosen up the crowd, and losing them all together.

    Hosting an open bar all night is not only going to cost you a ton of money, but you are risk a crowd that becomes chatty and distracted when you need them to be alert and engaged for fundraising.

    What can you do instead?

    Try hosting an open bar during the cocktail hour

    If you want to treat your guests to a few free drinks, host an open bar for an hour or 90 minutes at the beginning of the evening. This will give them some time to loosen up and enjoy themselves before the big program starts.

    Incentivize people to come early with free drink tickets

    A client of mine just did this over the weekend. They found that their group used to parade in to their event late, which impacted giving during the silent auction, so they promised that if people arrived between 5-6 (in the first hour of registration), they would get 2 free drink tickets. This got people in the door early and they could use those free drink tickets at any point in the night.

    Have wine served at the tables at dinner

    This is a great option to give people a drink during the program. It’s not expected, but always appreciated by guests.

What is the common theme?

Before you spend money on anything at your event, ask yourself, “Will this distract from our mission or remind our guests of our mission?”

In and of themselves, none of these things are bad, but more often than not I’ve seen them create more harm than good for my clients. My goal for you and all of my clients is to be as profitable as possible while educating as many guests as possible so they can begin to build life long donor relationships. My fundraising strategy is very mission-focused, which leads to record-breaking events.

If you want help with emphasizing your mission, I recommend checking out my Free Fund-A-Need Framework below. This will help you tell your organization’s story throughout the night at your fundraising event and turn more guests into donors.

Fundraising Event Tip: How to make donors WANT to give to your organization

Fundraising Event Tips: How to make donors WANT to give to your Organization at your fundraising event

What would it mean to your organization if donors not only came to your fundraising event and made a donation, but also became die-hard donors who you could rely on for years to come?

I know how much the money you raise at your event means to your bottom line. It is incredibly important to your ability to keep doing the amazing work you do! Wouldn’t it be amazing if your donors not only gave, but completely and 100% bought into your mission and became the motor that moved your organization forward? Incase you were wondering, the answer to that question is HECK YES!

How to make donors give at your event?

There are several techniques to getting guests to give at your fundraising event. They may give through the auction or play your revenue-generating games, and I’ve even witnessed guests be guilted and bullied into giving to an organization.

One of the best tools your organization has at your fundraising event is the Fund-A-Need (cash auction, paddle raise, giving moment, ask for donations, whatever you want to call it). The question I get all the time from nonprofits is “how do I get people to give during my fund-a-need?” And can you blame them? You may be asking the same question right now.

So I took the tools I have personally used to help my clients consistently have record-breaking fundraisers, and put it into my 3 part Fund-A-Need Framework for you (ABSOLUTELY FREE).

What will the Fund-A-Need Framework do for you?

You will learn to craft your nonprofit’s story in a way that will engage and empower donors.

You will learn how to use your event to turn casual attenders into die-hard, long term donors.

You will learn the 3 steps I ask my clients to integrate into their events that will prepare their hearts and minds to become financial partners before I even conduct the ask for donations.

If you are ready to set your Fund-A-Need up for success, download your FREE Fund-A-Need Framework here:

How many live auction items should you have at your fundraising auction?

How many live auction items should you have at your fundraising auction_.png

Today, I want to focus on something easy. I am often asked how many live auction items you should have in your live auction. 

In the past, auctioneers recommended having 8-12 auction items, but over the past couple years the intrigue of the live auction has faded and with the rise of the Fund-A-Need, it has become the primary source of revenue for most of my clients. This means that the live auction is evolving and becoming a source of momentum that leads up to the giving moment. How many auction items is perfect for building momentum and raising lots of money?

The number of Live Auction items I recommend having in your Live Auction:

4-6

Why? 

Because your guests don't have the attention span for any more than that.  

I have found that after 6 items, you begin to lose your audience's attention. You may engage the few people interested in those last items on your list, but other than that your guests are tapped out. 

Why this is important? 

For most of my clients, the Fund-A-Need is conducted after the live auction. And you want everything in your program to support your Fund-A-Need. Sometimes it is even more profitable to have the Fund-A-Need before the Live Auction, which is a topic for another day. For today, I want to focus on how the live auction can build momentum up to the Fund-A-Need.

What's the big deal about the fund-a-need? 

The fund-a-need is where most of my clients bring in the majority of their revenue. It is when they can involve everyone in the audience and welcome them to join in on the incredible work their organization does. If you want to learn more about that, please watch my videos from last week and the week before to get a very thorough overview of how to have a profitable fund-a-need.  

You actually lose money by having too many live auction items

You do not want the live auction to run too long because it will only engage a small percentage of your audience, and the rest of your crowd will eventually tune out and you will have lost their attention for the Fund-A-Need where they are mostly likely to give.

While I make sure my live auctions are fun and exciting and that everyone is in on the fun by making jokes and playing with the audience, after a while it becomes a lot of the same. You do not want your auctioneer to take away from the work your organization does.  

By including 4-6 live auction items in your program you will: 

Cultivate Competative Bidding

By having fewer items in your live auction (this is actually true of your silent auction too), the few items you have will go for more than they would have if you had more items in play. I have many clients who cut their live auctions in half and made the same amount of revenue (if not more) in the live auction and made even more in the Fund-A-Need. 

Create Momentum

This is a stop while you are ahead mentality. The live auction is fun and exciting and I get everyone laughing and playing along. You want to stop at the height of your energy and conduct the fundraising appeal or Fund-A-Need. People become swept up in the energy and are ready to give at this time. 

Build Trust

This is probably the strongest argument for having the live auction before the Fund-A-Need (again, you do not have to do it this way). As the auctioneer, I am an outsider. Your audience does not know me, and therefore they don't trust me. I have no credibility with them at the beginning of an event and therefore no authority to ask them to give money. After about four or five live auction items, we've gotten to know each other pretty well. I approach every auction with authenticity and quickly build a rapport with my audience. This means when it is time to do the ask, they trust and respect me and are more comfortable opening up their pocketbooks when I tell them to. 

Ever wonder how many live auction items you should have at your fundraiser? This many | Sarah Knox Fundraising Auctioneer

 

  

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

How many live auction items should you have at your fundraising auction_ (2).png

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.

Fund-A-Need Basics: How to determine your donation levels and secure a "momentum donor" for your fundraising appeal | Sarah Knox Fundraising Benefit Charity Auctions

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

This is a MUST READ for Fund-A-Need Success at your next live auction. How many live auction items should you have at your fundraising auction_ (3).png

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! 

How To Have A Successful Fundraising Gala Without Planning an Auction

Did you know this is possible? I know, it pains me to say it as an auctioneer, but you can have a successful Fundraising Gala without having any auction. I know what you are thinking! Surely, she can't mean NO auction. She must be talking about Silent Auctions. Nope. I mean NO auctions. No silent auction. No Live Auction. You can just have a Fund-A-Need (sometimes called a special appeal/cash auction/giving moment) and have a very successful gala.

When auctioneers started conducting Fund-A-Needs, it was because they noticed that after their live auction of 8-12 items, there were some bidders who bid thousands of dollars, but because they didn't win the auction item, that money was lost. So instead of losing that revenue, they would do a catch all ask to try to capture that money from donors. 

Fast forward 10 years.

Now, the Fundraising Appeal/Fund-A-Need portion is the highest revenue generator for most of my events. In fact, I have clients that don't have an auction at all, they just have a Fund-A-Need and it is wildly successful. 

With the right strategic preparation and planning, your organization can have a Fund-A-Need or Special Appeal that will engage the majority of your audience and allow them to partner financially with your organization in the amazing work that you are doing. 

How to make your Fund-A-Need successful: 

1. Pick a specific need within your organization

This is important because it helps you set a specific goal for your fund-a-need and it allows your guests to have something tangible that their funds will be going towards.   I know your organization does many wonderful things to further your mission, but your donors want to be inspired and given a specific way that they can help your organization. 

2. Work your program around the need you are addressing that night

I am a fan of keeping programs short and sweet, but making sure every minute of the program is focused and intentional so that you can keep your guests' attention the entire time and ensure that they are fully engaged when we present the Fund-A-Need.

A program formula I like is:

  1. Welcome (by emcee, president or board chair) 2-5 minutes

  2. Brief Overview of Organization and Mission for new guests 2-5 minutes

  3. Brief overview of what has been accomplished in the past because of the donors in the room and an introduction of what is next for your organization (the need of the night) 10 minutes

  4. Brief Testimonial of someone your organization has helped (ideally a video testimonial so you can control the time and the attention of the audience) 2-5 minutes

  5. Fund-A-Need/Special Appeal by auctioneer 10-15 minutes

  6. Thank you to all the donors in the room and the specific Sponsors by President/Executive Director/Board Chair/Etc 10 minutes

  7. Entertainment/Raffles/Housekeeping Announcements

This all takes less than an hour and you should start the program as soon as the salad is cleared so that people can eat dinner while listening. If people are eating, they won't be as tempted to talk to those around them and you will have their full attention

Every event and organization is different, so this formula is just a guide to get you started. Schedule a consultation with me to discuss how you need to order your program for optimal success. 

Get your Fund-A-Need Framework STAT!

Learn how to connect with your guests and turn them in to die-hard donors.

    3. Tell a story behind your need

    Storytelling in nonprofits is widely talked about these days. We all (hopefully) know that storytelling is important and that is because stories emotionally engage potential donors. 

    Examples:

    If you are raising money for medical research, don't bore your guests with statistics and science. While, I think that stuff is super interesting, it takes a lot of energy to listen to and process. Instead, tell a story about someone everyone in your audience can relate to. Perhaps a mother, or a child. A story humanize the need which inspires action.

    If your school is raising money for technology, don't talk about the apps and programs (no one cares or understands), instead talk about the teacher who was able to make a breakthrough with a struggling student because she integrated technology into her lesson plan. Every parent can remember a time when their student struggled with something and would give anything to help them get it. 

    Brainstorm this. There are so many great resources on nonprofit storytelling. As a part of my tailored consultation, I can help you decide what stories will make the biggest impact on your Fund-A-Need. 

    4. Inform your donors before the event

    Some of the most successful Fund-A-Needs I've conducted have engaged the donors before the event. The invitation featured a story of someone impacted by their organization (specifically the cause at hand). Their email reminders had another success story. They shared videos on their social media feeds. So when the donors showed up that night, it was not their first time being exposed to the need or the organization's capabilities. They had been courted and prepped and were ready to be invited to partner in helping with the organization's mission. 

    If you want to see if dropping your auction is the right choice for your fundraising gala or you want your event to be more focused and engaging in general, schedule a Call with me. 

    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 ->

    How One Little Girl Changed the Course of a Fund-A-Need

    The most inspiring fund-a-need I've ever done | Sarah Knox Benefit Auctions

    This weekend I had the honor of working with the Minnesota Ovarian Cancer Alliance. When you first walk in to their Black, White and Teal Gala, you instantly feel the love. Every single person in the room was in one way or another touched by Ovarian Cancer. There were survivors, spouses, children and friends who had lost someone to this disease. Everyone was decked out in the colors of the evening...Black, White & Teal. The room was a sight to behold.

    The live auction was lively and the fund-a-need started like all others. They showed an inspiring video (which I always recommend) about a young girl and her dad who had lost her mom to ovarian cancer earlier that year. After losing her mom, she wanted to do something to make a difference. So this brave 8 year old girl, went door to door asking for donations to give to MOCA. It was a beautifully inspiring story and we were blessed to have her at the event. I started the fund-a-need like most others: $5000, $2500, $1000, etc... I got down to $100 & $50 and fewer hands were rising than normal. At this point, I asked the young girl how much she raised going door to door: $35.77. Instead of stopping at $50 donations, I turned to the audience and asked who would like to honor this young girl and her mom by matching the efforts she had done to raise funds. In a crowd of 400 people, nearly every bid paddle went up to commit to give $35.77. 

    While the cause of the night, ovarian cancer, is an inspiring and personal cause that everyone in the room felt led to give financially. At the end of that fund-a-need, people weren't raising their hands for MOCA (I mean they were), but they were raising their hands for one girl who wanted to make a difference in honor of her mother. They stood behind this young girl who had a vision of making a difference and dreams of a day where no other boys or girls will have to lose their moms to Ovarian Cancer. This one girl's efforts multiplied beyond tenfold (more like two hundred fold). It was an honor to facilitate this group effort to make a difference. I pray that this sweet girl, will remember it forever.