Benefit Fundraising Auctions
Benefit fundraising auctions are the new hype in the auction industry! During the last couple of years many auctioneers have been advised through national and individual state auctioneer associations to consider performing benefit fundraising auctions as an additional source of income to bolster their business prospects aside from performing standard auctions.
What are the differences between standard auctions and benefit fundraising auctions? There are many differences from the auction event itself (usually somewhat formal), people attending, venue, and the style of the auction chant used by the auctioneer. The basic differences are that in a standard auction the auctioneer starts high to establish value, and then he drops down until he gets someone to bid. At a benefit fundraising auction the auctioneer will start at a reasonable wholesale value and go up from there.
Why should I perform Benefit Fundraising Auctions you might ask? There are over 10,000 Benefit Fundraising Auctions in the USA every year! How’s that for opportunity? Further, they are a great way to fill your week days or evenings, with weekends still available for your bread and butter auctions. Benefit auctions are much less labor intensive than standard auctions, but they can be equally stressful because you usually have to wear many hats (i.e. Consultant, Babysitter, Peacemaker, Psychologist, Money manager, etc.) in pleasing your clients. This is also something to consider before you choose to become a Benefit Fundraising Auctioneer.
Believe me, I understand that there are many auctioneers out there that have mixed feelings about whether or not to charge a charity organization for your services, but I ask you to consider the following questions. (1) Is your time worth something? (2) If you are asked to donate your services, then ask the auction organizer if anyone else at the event is getting paid (i.e. Sound Engineer, Light Technician, Event Planner, Florist, Caterer, Janitor, Entertainer, etc.)? My motto is this: “If anyone gets paid, then I get paid!” (3) The old clich� phrase: “People value what they pay for”. Weigh the pros and cons for yourself before you make a decision. Having been in the business for eleven years, I have donated my services only once, and that was for a cause that I truly believed in. Other than that one individual example, I have charged for every benefit fundraising auction I have ever performed.
Should I charge a percentage or flat fee? I do know that some auctioneers will charge a percentage for Charity/Benefit Auctions, while some charge only a flat fee, and still others do a combination of both. According to the Association of Fundraising Professionals (AFP), as specified in their Code of Ethics, fundraisers should charge either an hourly rate or flat fee. Of course, this is up to you.
I used to charge a percentage, but I have moved away from that method of payment to strictly charging a flat fee plus expenses. Even though I am member of AFP, I realized prior to my joining AFP that my client’s perception of auctioneers who charge a percentage is not always positive. For example, if the auction does incredibly well, then the client often feels as though you have taken something undeserved and extra from them. When you charge a flat fee your client will know exactly what they are paying upfront, regardless of whether your Benefit Fundraising Auction grosses $10,000 or $1,000,000.
As for marketing, let your imagination be your guide. For starters try churches, schools, libraries, etc. One word of advice I have for all of you is don’t overestimate your normal auctioneer abilities as being an expert in a field that you know nothing at all about. I have seen too many auctioneers attempt to perform very important benefit fundraising auctions (i.e. Art & Wine, etc.) only to fail miserably, because they thought they could fake it. Even if there is a master of ceremonies who describes and discusses the item, don’t be fooled into this false sense of security. There is no harm in telling a client, or potential client, “I don’t feel comfortable with the material being auctioned.” They will respect you more for telling them the truth. In the meantime, if you aspire to be an Art or Wine Auctioneer, then study, study, study until you are an expert, and then go for the big events.
For the most part benefit fundraising auctions can be a real opportunity to go to the next level in your career. I have been all over the country, and I have participated in some very unique and worthwhile experiences. A mentor of mine once asked me, “Are you ready to go travel by private jet, yacht, etc? Do you want to see the world? Are you ready to live a life that others dream about?” Truthfully, when he said this to me, I was terrified, but I also felt the exhilaration of the challenge. I have made my choice, and my career has benefited ever since then.
Tom DiNardo is co-owner of DiNardo & Lord Auctioneers of Anacortes, WA. Tom is an Auctioneer, Appraiser, and Writer.
To contact Tom, visit www.DiNardoandLordAuctioneers.com
(c) 2004 Tom DiNardo - All rights reserved.
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