Like everywhere else, Sonoma charities are feeling the double pinch of an increase in demand at exactly the same time sources of funding are drying up.  Sonoma is being particularly hard hit because there are several major fundraising events that have taken a break in 2009.  Most of the cancellation or postponements were implemented before the economy tanked.

Sonoma Paradiso, the biggest fundraiser in the county simply posted a message on their website, with no indication of future plans.

The Hospices of Sonoma website says that they are rebranding as the Pinot Society Wine Auction with the plan of holding their first auction in early 2010.

The Sonoma County Showcase auction was merged with the Sonoma Valley Harvest Wine Auction in 2008.

The Sonoma Valley Harvest Wine Auction announced earlier this year that, in a break from past practises, they would ask their beneficiaries to apply for grants AFTER the auction.

In combination these events raised several million dollars for charity, particularly childrens’  charities, every year.  It is just happenstance that it all hit at once, but the combination of circumstances and the tough economy means harder times.

If there is any lesson to be learned, it is that it is always better to own your own event.  Raising money through an umbrella organization may leave you open to unexpected twists and turns.

After viewing one of the “Kitchen Sink Dramas” that ruled in the West End after WWII, Noel Coward was asked what he thought of an actor’s performance that was famed for it’s spontaneity and improvisation.  “The only improvisation I like”, Coward replied, “comes with three weeks of rehearsal.”

I was reminded of this recently.  I was just starting the Fund-A-Need pitch when the popular and charismatic Director of the Organization walked by the stage.  I called him up, and asked for his input.  After a few seconds it became apparent that he did not know the where the F-A-N money was going.   OUCH!  I backtracked and gave my original pitch.  I don’t think that it cost the organization any money but the director feels bad, I feel bad and the reputation of the organization was ever so slightly tarnished.

It was my fault.  I had forgotten the golden rule.  On stage everything matters.  What would be insignificant in casual conversation becomes heightened when said on stage.

Everything needs to be rehearsed or at least planned.  At one event I watched a local anchorman start to tell a joke, realize that it was inappropriate, try to back track, dig a deeper hole for himself, and eventually end up revealing some things  that I am sure he would rather have remained private.

A microphone without a script is a dangerous tool.  The classic was a big donor who was being honored by an organization.  On taking the stage to receive his plaque, the donor, who had obviously fully appreciated the free Martini Bar, proceeded to tell everyone that he hated the organization and only gave the money to placate his wife, who, unfortunately could not be there that evening.

One of rules at Reynolds & Buckley is that we avoid “gunslinger” events, where we just come in and do the auction without the prior consulting and planning.  I hope this portion of our service is of use to our clients, but I know for a fact that it is essential to us.  If we do not assimilate your message and goals, a process that takes time, and then practice repeating them in our own words, we will not be able to communicate them clearly and believably to your audience.

A great improv group creates spontaneity through playing theater games.  As a group you learn each others strengths and weaknesses.  You have the time to develop characters and skills that the group learns to depend on.

In other words improvisation can improve with three weeks of rehearsal.

At more than one recent event, I have been handed a catalog with inflated values on the live auction packages. There is an inherent danger in this, as it stretches the boundaries of trust with bidders. The desire to establish a high value for the auction packages one works incredibly hard to obtain is understandable, but extremely high lot values can have a chilling effect on an auction. Especially in this economic climate.

A fundraising auction is in many ways an exercise in building and maintaining trust. Attendees come because they trust they will have a good time. They give you money because they trust you honestly need it and that you’ll do good work with it. You have to trust that your crowd will show up and support you at the level you need.

The latter is probably harder to do, but it is also the most important. It takes a big leap of faith to put yourself out there, to put all of the effort into making the event happen, and to trust that your crowd is going to come support you at the level you need. The moment you start inflating the values of your live auction lots, however, you violate that trust. It seldom pays off.

When the values of a live auction are inflated, a couple of things can happen. At best, people feel priced-out of the auction, and start paying less attention. This is bad because we need everyone to feel like the auction is somewhat inclusive, at least until we do the fund a need.

The worst thing that can happen if you inflate the values is that the audience turns on you, because they think you are being greedy. A few summers back I did an event that was lucky enough to have one of San Francisco’s most wealthy and highly-regarded philanthropists in the crowd. The people putting the event on wanted everyone in the room to rise up to said philanthropist’s level, and insisted on inflating all of my opening bids.

Our opening lot was a winemaker’s dinner for 12 people at a then soon-to-open Winery. At the client’s insistence, we changed the opening bid from $2,000 to $4,000 - thereby also changing the implied value of the lot from $4,000 to $8,000. Ridiculous. And I wasn’t the only person who thought as much.

One of the tables was filled with a bunch of bidders I see at many wine auctions in California and beyond. This crowd comes to spend money at an auction. I could see the looks on their faces immediately change when I announced the opening bid, as they all got pissed off and put their paddles down. That same table of people had spent over $30,000 at an event only two weeks before. That day, they didn’t bid once, not once. They turned on the event and sat on their paddles from the opening bid.

It affects my credibility as your auctioneer, as well. If I’m telling a crowd that the lots are worth X and everyone knows they’re worth less than that, people start to doubt what I say. And when people start to doubt what I say, they start to spend less, ultimately having the exact opposite effect of the original intent. There are many keys to getting people to spend more at a fundraising auction. Simply saying the stuff is worth more than it is isn’t one of them.

Due to current budgeting considerations more events are turning to the “buffet line” to cut costs.  Some events are even using scattered food stations and high boy tables.  Both are seemingly cost effective, but raise timing and technical issues.

First, the “grazing” method.  Guests roam freely from food station to food station and then search for some space on those small high-boy’s or stand in a group and practice their juggling skills.  Your invited guests will be carrying a drink, a plate and hopefully their program and bidder paddle. “Tasty food, wonderful wine…hey, where’s my program?”  The best fix for this is open table seating so at least they can sit, eat and bid!

Buffets on the other hand usually come with assigned tables.  Which helps if you choose to call the tables up to the buffet by number, as opposed to opening the buffet and standing back! The big issue with buffets are, the first people through the line are done with their dinner but those at the end are still holding empty plates.  Those who have finished will only sit so long before their up and roaming around again which means you have to sit them down again before you can start the program.

So what do you do?  You start the program when the majority of your guests are through the line.  If any of the folks in line are interested in one of the first lots then they will either bid from the line (it’s true) or send their significant other back to the table to join in the bidding.  It may seem a little curt for those in line, but for the majority who are done and waiting around it will be greatly appreciated.

And here’s a little technique that made a difference for a 500 person buffet.  I had the silent auction tables set so they paralleled the buffet lines.  “Boy, am I hungry….ooohhh a dine around town package!”

So if you’re going to go the buffet route think about where your people are going to make camp. Take into consideration the only money you’re saving on a buffet is the cost of the wait staff.  Which could in the long run be costing you bids!

Five simple questions to ask when interviewing a potential auctioneer.

1. How many charity auctions do you do a year?
2. How many years have you been doing this?
3. What is the range of auctions you do in financial terms, the size of the crowd and the types of organizations with which you work?
4. What is your longest run for doing an auction?
5. How many of this year’s auctions are repeats?

The answer to these five questions should reveal the essential facts about an auctioneer.  The first three questions deal with overall experience.  One of the challenges doing this work is that there are no rehearsal opportunities.  You learn in front of an audience.

It is really the last two questions that are most important.  There are several specific skills and characteristics that are either useful or essential for an auctioneer: a passion for a cause, a sense of humor and a facility with numbers are good examples.  But on top of those there is an indefinable quality that makes all the difference; THE ABILITY TO CONNECT WITH AN AUDIENCE.

The best metric of this quality is being invited back over a course of years.

I write while changing planes in Vegas on route back from Indianapolis.  We were there for Elegant Vintages, an auction benefiting the Indianapolis Zoo.  The event was a great success, and it appears that the auction at least matched last years, and may well have even exceeded the previous total.

Once again you have to look under the hood to see why this event has bucked the national trend.  Colleen and I agree that the secret strength of this event lies with the two chairs, T.J. Cole and Holly Banta.

They have been the Chairs prior to our becoming involved with this event, and that is least six years ago.  Apart from the obvious advantage of having two young, attractive, dynamic, food and wine loving individuals running the event, their continued involvement was particularly important this year.  They have a long term perspective, and know that the event is successful, though the totals may vary from year to year.  This removed the pressure to “out perform” the chairs of previous years.

Another advantage that comes with longevity is that they know what works.  Even though they were anticipating a drop in revenue, they insisted that the event maintained the same high quality that they were famous for in the past.  They knew that they would lose their audience if it was perceived that they had cut corners.  The wines for tasting during the evening were phenomenal!

Of course it is not realistic for most events to keep Chairs for anything like this period of time, and I am amazed at their generosity in taking on this role once again.  They both have full and busy careers, are in the midst of a major remodel and raise horses.  Thankfully they were helped some new lieutenants this year.

We just returned from Park City and the National Ability Center Auction.  I have not yet heard the final numbers, but I suspect that they may be ahead of last year.  As always it was a wonderful event, but there is no doubt in my mind that their focus on message explains their success.

The NAC helps people with disabilities to participate in the sports they love or learn to love.  This has a life-changing and life-affirming effect.

The event, named Red, White and Snow, brings over 20 wineries to Park City, Utah. There is the usual round of wine maker dinners and tastings, but the highlights of the weekend are the occasions where everyone, Vintners, Clients, Staff, Donors and Supporters get to interact on the slopes and socially.  Your heart would have to be made of stone not to be overwhelmed by the commitment, courage and dedication of everyone involved.

The night of the auction, Teague, one of the NAC atheletes who lost an arm and leg in a car accident as a child, introduces a video.  He starts by saying that he never expected to be an athelete, and the video ends with a clip of him completing the slalom course at an incredible speed.

My main challenge at the auction was simply to find a way to give the audience permission to make the donations they wished.  This is not an insignificant challenge in this time when “Frugality is the New Chic”.  I was definetly helped in this by the vintners who kept adding to their Lots.

The lesson from the weekend is that you have to fight for your organization.  The downturn in the economy has had a specific effect on potential wealthy supporters.  As a group they are attending fewer events.  Every organization is an a competition to make their event the most emotionally satisfying for their attendees to ensure long term success.

Last week a friend returned from a board meeting and announced that they were anticipating their event to be down 50% this year.  Talk about a self fulfilling prophecy!  If you are anticipating lower returns, TELL NO ONE!  It is one of those secrets that need to be whispered into a well at midnight.

As soon as they hear that you are planning on less, everyone from the lot donors to the lot buyers to the participants in the fund-a-need, will react accordingly.  This will create a downward trend that is hard to stop. On hearing that you anticipate 50% less revenue all the bidders will arrive planning to buy the same quality lots as last year for a big discount.  Unfortunately, in anticipation of lower bids, donors will have offered lesser lots.  Suddenly a planned 50% decrease becomes a 66% decrease.

If asked about your expectations you need a response.  A possible suggestion: While acknowledging the shape of the economy, we have very loyal supporters and so we hope the auction will be in the same range, give or take, as the last few years.

Any Brit will recognize the line from the Morecambe and Wise Show.  The correct answer was “Rubbish”.

That pretty well covers my attitude to 2009. As far as I can tell, fundraising auctions are down about 33.3%.  That is the average and as such paints a pretty useless picture.  A more accurate description is that auctions are all over the place.  A few have even exceeded previous years totals, but more are down.  Some are down two thirds.

Any input from other events would be much appreciated.

Reynolds & Buckley will be conducting a workshop entitled Fundraising Auctions in Hard Times on Tuesday, February 24th at the Volunteer Center of Sonoma County. Company founder and nationally recognized fundraising expert David Reynolds will be on hand to discuss the challenges facing anyone conducting a fundraising auction today, along with associates Greg Quiroga and Ed Gold.

This is the third year we’ve partnered with the Sonoma Volunteer Center to offer a workshop, and this workshop couldn’t come at a more relevant and important time. We will discuss emerging trends in fundraising auctions, share insights from the 50+ events we’ve done since the recession “officially” began last fall, and touch on the ever-important fundamentals:

• Laser beaming your message
• Donor development
• Bidder recruitment
• Audience empowerment

Then we’ll break up into roundtable discussion groups led by David, Greg and Ed to address the specific concerns of each organization’s event. Whether you are considering starting an auction or have a well-established event, you are certain to gain a wealth of tips and ideas.

Date: Tuesday, February 24
Time: 9:30 am – 12:00 pm
Place: Volunteer Center of Sonoma County, 153 Stony Circle, Suite 100, Santa Rosa, CA
Fee: $45 for members of the Volunteer Center of Sonoma; $65 for non-members
For: Executive directors, board members, development staff and other volunteers involved with fundraising auctions

Click here to register online for this Reynolds & Buckley workshop at the Sonoma Volunteer Center.

I feel compelled to note that all of the fees associated with this workshop cover costs for the Sonoma Volunteer Center and its programs.