November, 2009»
At a recent planning meeting where we were discussing repeat auction lots for an event, it came out that one of the donors felt seriously slighted because their lot was never redeemed. A buyer had paid top-dollar for the lot at the auction, and had yet to cash it in with the expiration date looming. The donor felt slighted, and was inclined not to make the donation again.
According to our calculations, as many as 40% of all auction lots purchased at fundraising auctions go unredeemed. This isn’t a function of the desirability of the lots being offered at fundraising events, but a reflection of the nature of supporting causes through auction purchases. People who make a purchase at a fundraising auction do so first and foremost because they believe in the cause; the desirability of the lot simply justifies getting caught up in the heat of the moment and (hopefully) overpaying.
Buyers assume that 100% of the money is going to the organization putting on the auction: if they don’t redeem the lot they will have still made a good donation to the cause. Most buyers also support more than just one cause, and often have shoeboxes full of certificates they keep meaning to redeem. Buyers aren’t trying to slight donors, they simply lead busy lives and have scheduling conflicts.
It is understandable that some who donate lots to an auction most often do so because they really were looking forward to making their event happen. There are a lot of possible solutions, such as putting the donor in direct contact with the buyer to coordinate the event, but they are all fraught with potential for disaster.
The simple solutions is to assure donors that their donation is loved: by you and the people who bought it. Their donation helped raise significant amounts of money for a cause they believe in. If the buyers haven’t taken them up on their generosity yet, it is not a reflection of how wonderful their lot is. It’s just more proof that we all lead insanely busy lives, and sometimes making time to show up and buy the lot is a major accomplishment, let alone making the lot happen.
Heading into the fall fundraising season, one trend had become readily apparent this summer. More than ever, the most popular fundraising auction lots sell relationships, not stuff.
We’ve long been advocates of selling “access” at charity auctions, and by that we mean “selling access to that which you cannot buy elsewhere.” Anyone can walk in to Michael Mina’s restaurant to have dinner. But a cooking class for two people where Chef Mina himself teaches you how to prepare a multi-course feast, followed a few weeks later by a dinner party at your house where you cook and Chef Mina is your sous chef is truly amazing (be sure to ask Ed about that one).
We used to include in our definition of access places you couldn’t normally gain entrance to. VIP access to a major sporting event, for example, used to sell fine on its own merits. But even those types of lots have lost their allure, if the buyer isn’t sure that they’ll be building a relationship while they attend it.
A celebrity golf event in Raleigh this past August provides a prime example of this. We had a lot that included VIP access to the Allstate Sugar Bowl in New Orleans over new year’s eve. It included airfare, hotel, and access to the Sugar Bowl, one of the major bowl games in NCAA football. We were never able to clarify exactly what we meant by “VIP Access,” so I simply compared attending the Sugar Bowl as Allstate’s guests to getting a tour of Spago’s kitchen with Wolfgang Puck.
When it came time to sell the lot, Dennis Haysbert, the official spokesman for Allstate, was on stage with me. He gave a brief overview of how incredible New Orleans is over new year’s eve, and how much fun the Sugar Bowl can be. We got the bidding going and as quickly as it started it was over: with only two bids. As I was selling it, Dennis stepped forward declaring that this simply could not be, and went on to explain in more detail/alter the lot on the fly.
Now Dennis himself was going to be your host, he would take you down to the field pre-game, then take you up to Allstate’s VIP Box to watch the game, and even join you on Bourbon Street after for a little partying. We started the bidding over, and this time it sold for more than twice what it had sold for before. Access to the Sugar Bowl was one thing, access to the Sugar Bowl with a chance to build a relationship with Dennis Haysbert is an entirely different beast.
The relationships you strive to sell don’t have to be A-list celebrities from Hollywood - but if you have said relationships, make the most out of them. The definition of celebrity varies as much from event to event a the organizations themselves.
The National Pain Foundation, for example, used to do a fundraising auction in San Francisco. Every year one of the biggest selling lots would be dinner with Dr. Eliott Krames and his wife in their home, prepared by them and paired with wines from their cellar. Dr. Krames founded the NPF, and for the myriad pharmaceutical executives and doctors in that room he was one of the biggest celebrities we could have found. No offense to Eliott when I say that if we took that lot elsewhere it wouldn’t have the same cache. Celebrity is a relative term.
When planning your fundraising auction, encourage your committee and board members to creatively think about all of the relationships they have. Is there anyone they know who people would love to get to know as well? Sometimes the biggest money-making lots are right under your nose - or on the tip of your iPhone, as it were.
