Nonprofit Fundraisers and Board Members! Are Silent Auctions Good?
by Betsy Steward
It’s nonprofit event season again! Is your annual celebration coming up? Are you including a Silent Auction at your gala? As a fundraising consultant, I’m enthusiastic about Live Auctions, but I am dismayed when I see my clients spending so much of their time and energy on Silent Auctions instead of donor cultivation.
In fact, I usually try to convince my clients to avoid a Silent Auction altogether, or at least limit it. The purpose of today’s blog is to help your Board, ED, and fundraising staff understand why leaving the silent auction out of your plans might be smart — or, if complete removal is just not an option, to consider some ideas for streamlining it, so that it doesn’t get in the way of your event’s bigger goal and purpose.
What IS your event’s “bigger goal and purpose”?
Believe it or not, the primary purpose of a fundraising event is not raising money. No matter how big a role your event earnings may play in your annual budget, raising money is a secondary objective of your event.
The primary purpose of an event is to build relationships among stakeholders (donors, potential donors, board, and staff). We know in fundraising that people give to people they know and trust. An event provides an opportunity for stakeholders to discover their shared values and common interests — which leads to working together to address a problem. An event is a golden opportunity to educate less engaged or potential donors about the urgent need for your work, and to generate excitement about the possibilities for change.
“But,” you say, “my donors already know what we do!” Really? How about their spouses? Often, the spouses of the most engaged donors aren’t fully aware of the difference their support makes, or the need for it. And hopefully, there are “newbies” among your guests. An event is a chance to enlighten everyone about why your nonprofit exists and the transformations that generous donations can make — but not if your guests are focused on the Silent Auction.
Silent auctions get in the way of invaluable relationship building.
Unless it’s full of items that can facilitate relevant discussion related to the nonprofit’s mission (like paintings at an art center), a Silent Auction can disrupt the flow of conversations, preventing relationships from blossoming. It can distract donors, staff, and guests, defeating the bigger purpose of getting everyone together.
How many of the following scenarios have happened to you at a nonprofit event?
You’re in the middle of a deep conversation with a donor about the vital work your nonprofit does when you are interrupted by another guest rushing by, saying, “Hey, if you want that trip to Madrid, you better bid again, someone else just bid!” Your conversation ends abruptly when the donor rushes off.
You’ve just been introduced to a well-known guest (a.k.a., potential donor) whose assistant has blocked your calls for months; she briskly says, “oh, nice to meet you, my husband wants me to see something in the auction,” and takes off.
As you talk with a couple, you realize their primary focus is on “finding a deal” at the auction, rather than hearing about how their donations have changed the lives of those your nonprofit serves, and glowing in the realization of just how much their empathy has helped others.
Your ED is getting to know a major philanthropist who was invited by your board chair; just as their conversation gets off the ground, a junior staffer who can’t find the Development Director pulls the ED away to address a silent auction situation.
Time spent schmoozing with donors and potential donors at a gala is critical to nonprofit fundraising. Once you’ve made a personal connection to a donor, it’s much more likely that they will take your call in the days right after the event. From there, you have a priceless opportunity to continue the conversation about your work and mission — which is what leads to more (and more generous) donations.
And after the event, will the donor who won the trip to Madrid be glowing because of all the good she’s done by supporting your work? Will she be calling family members to rave about your nonprofit’s accomplishments, encouraging them to get involved? Or will she be excited to share the news about her upcoming Madrid adventure?
If circumstances demand that you include a Silent Auction at your event, keep these ideas in mind:
Remember that your most important job is donor cultivation. In the months leading up to the event as well as on the night itself, don’t let Silent Auction tasks obstruct your focus from the opportunity to build connections with donors.
Limit the number of items included in the Silent Auction. The more items you have, the more power the Silent Auction has to lure you away from your real job and your donors away from engaging more.
Control the items offered by making sure your organization’s Gift Acceptance Policy includes language that will allow you to decline a gift to the auction. If something goes against your mission or won’t sell, it shouldn’t be included. A silent auction is not a garage sale! You need to be able to decline an auction donation. (If your organization doesn’t have a Gift Acceptance Policy, you need one! I’ll cover the reasons why in my next blog — scroll down here to sign up for my blogs.)
Set a deadline at least one week before the event for donations to the silent auction, and stand firm in respecting that date. Well-meaning board members who show up the afternoon of your event with three more items are sabotaging your fundraising efforts — sapping your energy for engaging with donors by giving you more tasks, even though (of course) that’s not their intention.
Run the auction online during the weeks leading up to and following the event, so that your board, staff, and guests are less distracted by it during the event.
Plant the seed in the minds of your staff and board about eliminating next year’s Silent Auction.
Don’t let a Silent Auction overshadow your fundraising efforts.
If it’s done right, an event can leave all who attend inspired and grateful for your organization. Relationships developed at an event have the potential to lead to more and bigger donations, but only if your board and staff leverage the cultivation possibilities your gala provides. That means talking with people, not shopping!
The Silent Auction has the power to distract from the mission, and to disrupt and defeat your efforts to get to know your donors and potential donors. And let’s face it: sometimes focusing on silent auction tasks is easier than talking with a major donor.
But ask yourself: how much money does the silent auction actually raise? Could you get the same amount by cultivating a generous donor, and then asking for that exact amount?
An event that doesn’t engage donors beforehand and doesn’t include follow-up afterwards is a waste of a nonprofit’s time and resources. When staff and board are fixated on the Silent Auction, potential donors are ignored. Freeing up your fundraising staff and your board members to focus on building relationships before, during, and after your event will, in the long run, pay many more dividends than most Silent Auctions can possibly produce.
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Betsy Steward is an independent fundraising consultant. She advises clients on major donor solicitation, cultivation, and stewardship, as well as fundraising best practices, back-office organization, board presentations and writing to donors (appeal letters, emails, proposal letters, thank-you notes, etc.). She can be reached at BetsyVSteward@gmail.com.