February 22, 2025
A lot of first-time organizers have the same worry: they’ll tell me, ‘Our people are humble and not flashy, and they won’t want to attract attention by bidding.’ If that were the purpose of the live auction, I would agree. That’s why it’s important to create an atmosphere of mutual support for the charity, as opposed to putting all the attention on the bidders. By framing the auction as a collective encouragement, organizers can create a sense of community achievement that motivates everyone to participate without ever feeling ostentatious.
When introducing a live auction, it is crucial to set the right tone. Emphasizing that every bid contributes to the overall success can inspire attendees to take part, regardless of their financial capacity. For instance, a $100 bid from someone earning $50,000 can be just as impactful, if not more so, as a $100,000 contribution from a billionaire. Having diverse donor participation is key to raising more funds overall.
Many organizations also rely on annual events, such as fun-runs or galas without individual fundraising components (like live auction, silent auction, Fund-a-Need, raffles) for fundraising. However, these events often incur significant costs that can limit net returns. Alternatively, methods like direct asks to wealthy donors can lack the context needed for patrons to understand the impacts of their potential contributions, which can lead to missed opportunities for larger donations.
In contrast, a well-executed live auction allows attendees to be present for their peers’ contributions, which can motivate them to give more. It’s one thing to read in a report that Jane and Joe Philanthropist gave $100,000 to support an organization; it’s quite another to see Jane and Joe sitting at the next table raising their paddle. Donors usually like to be recognized, and there are hardly any better ways to recognize a generous donation than by having fun with donors at an event and publicly honoring them with applause. For example, per our recommendation, a Southern California religious organization transitioned from merely hosting “friend-raising” events to implementing live auction fundraisers, resulting in a remarkable $345,000 raised.
Ultimately, while organizing a live auction requires more effort than an auction-less gala, the potential returns are significantly higher. People attend these events eager to support the cause - otherwise they wouldn’t be there - but it is essential to provide them with the right opportunity to give generously. The goal isn’t to trick anybody into giving or make them do anything they don’t want to do. The goal is to give attendees an easy way to be generous and feel great about the organization and themselves. By creating an inviting atmosphere and asking for support strategically, organizations can maximize their fundraising efforts and build a stronger community around their mission.
At KLM Auctions, we specialize in conducting live and virtual fundraising auctions that help our clients maximize their fundraising efforts. With our experienced auctioneers and proven strategies, we are dedicated to delivering successful results for every event.
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