The Party's Over—See Ya Next Year…Maybe…

In three decades of conducting fundraising auctions and consulting with nonprofits and schools about fundraising, the biggest mistake I've seen is treating an auction event as if it were a one-night, once-a-year deal. That thinking epitomizes the old transaction model of auction fundraising. I've even heard people proclaim, “It's like a retail business, but just a one-day retail business.” And when I started my career, I thought that too.

But it's just not true. A benefit auction is part of a whole, a strategic development process that extends far into the future. When you hold a benefit auction, you're not just staging an event. You're developing a philanthropic culture of giving that transcends the event.

That's why the Philanthropy Model approach extends far beyond your event night. beginning, a golden entry point for continuous donor development. Events, when strategically designed, are a superior way not only to identify new donors, but to cultivate them and continue working with them afterward, showing them what a difference their gift(s) make to the organization.

Penelope Burk of Cygnus Applied Research regularly conducts surveys of the donor environment. She says that of the 95 questions posed to donors in Cygnus's landmark study, none was more revealing than this one: “What would cause you to remain indefinitely loyal to a particular cause, while increasing the value of your contributions over time?”¹ Burk notes that 90 percent of donors who start contributing to a particular cause stop giving by the fifth renewal request, and over 60 percent who make a first contribution never make a second.² This disturbing trend limits fundraising growth and forces fundraisers to spend a disproportionate amount of their time and budgets acquiring more donors to replace those one-time supporters.

However, Burk also found that 87 percent of study respondents said they would give again the next time they were asked, 64 percent would make a larger gift, and 74 percent would continue to give indefinitely—if they received the following every time they made a gift:

• Prompt, meaningful acknowledgment of their gifts.
• Reassurance that their gifts will be directed as they intended.
• Meaningful news about their gifts' consequences before they are asked for another contribution.³

Stop Inviting Guests and Start Engaging Donors

The critical mind shift is to strategically think of an auction as a golden gateway for year-round connections with donors. Many groups I've worked with, such as STAR, Inc., The Providence Center, the Boys and Girls Club of Greater Lowell, and the Sonoma Harvest Wine Auction, intentionally cultivate donors all year long. They integrate the support of their boards, their vendors, and their key constituents in this expanded effort. And they propel their communities to develop cultures of philanthropy that continue to result in phenomenal success. For example, when Sonoma Harvest Wine Auction made this critical paradigm shift, they shattered their fundraising records by nearly 600 percent, going from $700,000 to $4 million in just two years because they embedded strategies that looked beyond a single-day social event.

Do You Treat Every Guest as a Donor?

One of my most important mentors, Hall of Fame auctioneer Patricia Massart, always said: “Eat a lot of ice cream, but savor more those with whom you enjoy it!” Pat, a beloved national leader in the auction industry, passed away several years ago after a valiant battle with cancer. Her words still ring true for anyone involved in fundraising. The question is, how do you “savor” your donors?

First, treat your auction guests as true donors, not just as event attendees. Be strategic. Design meaningful donor engagement into your auction event and beyond.

We know that giving is up and your donors want to contribute more to your great cause so that they can make a difference.⁴ So how can you leverage this exciting donor trend? Give your donors what they really want, which is to continue to support a cause they love, not only at your auction, but for years to come…They'll do this gladly—but only if you get your part right.

Using the Philanthropy Model paradigm shift, communicate the impact of your donors' high bids and contributions not only at your fundraiser event, but also as part of your long-term advancement plan. Engage your board and stakeholders to personally visit with guests during the cocktail hour and silent auction, at the dinner table, and after the auction, so they can share stories, discuss results, and highlight program successes that the guests' gifts support.

Say thank you right away. Assign your board members to call donors within 48 hours to personally thank them for their gifts. This should be a brief, heartfelt message of gratitude; this is not the time to ask for more funds.

Keep donors informed in a meaningful way all year long. After the auction, be sure to send donors specific information on where and how their donations are being used to further your great cause.

Your Auction Items Are Sold, but Are Your Guests?

Will they love you tomorrow? How will they remember you and stay with you? More important than selling items is selling your cause. Show your guests the impact their donations are making for your organization.

Penelope Burk's findings substantiate what I have seen at fundraisers and auctions for many years. It's a fallacy to believe that guests have a spending limit—that they come to an event having already decided the top limit of what they'll spend. Tom Ahern, principal of Ahern Donor Communications and author of Seeing Through a Donor's Eyes, asks, “What do your donors care about? From the donors' perspective, if they give you funds, what difference will it make? What good will their donations do?”⁵

Katie Banzhaf, executive director at STAR, Inc., explains how she and her board strategically leverage their auction gala for new board and donor development:

The gala and benefit auction is a magnet for many more people to become more engaged. Our professional auctioneer/consultant helped us to foster those relationships. While we were sometimes hesitant to ask more of these wonderful donors, Kathy Kingston, our consultant, reminded us that these were charitable individuals who would more than likely want to be involved in other areas of the organization as well. She was correct. A neighbor of a person served by STAR attended the gala as the neighbor's guest. They made a large donation. As Executive Director, I joined our Director of Philanthropy in a private meeting at their home to thank them personally after the event. We learned in that meeting that the donor had a sister with disabilities in another state. We learned she worked at a day care center. We learned that she would be honored to provide sitter services for our families so that they could attend parent meetings. Over time we learned that she would be an active board member with a genuine commitment to the organization. She is now in the middle of her second term on the board.

Cheers! Sonoma Harvest Wine Auction's Stunning $4 Million Success

In 2014, Sonoma Harvest Wine Auction shattered all records to raise over $4 million, a total that more than doubled the record-breaking 2013 total of almost $1.5 million. The year before, I'd been retained as the consultant by executives Maureen Cottingham and Honore Comfort of Sonoma Harvest Wine Auction. I worked with them, their boards of directors, and key vintners to develop strategies to significantly maximize revenue and guest engagement and to continue to position Sonoma as a world class wine region. Let's highlight their success through the Five Pillars of Strategic Benefit Auctions.

Pick Door Number 3: Take Your Organization to the Next Level

There are three strategic actions you'll want to consider to retain more donors and raise more money. First, create a plan to incorporate your benefit auction into your overall organizational development plan. Second, if you are going to invest the time and effort to produce an event, do it really well. Make sure you get high marks. Third, ask. Be unabashed about inviting your supporters to contribute, then thank people, then ask again when you communicate the impact of their gifts—for the entire year after your event and beyond (see Figure 15.2). That's my special message. People want to give and to give more; they are just waiting to be asked. When you communicate the impact message that connects your donors to your cause, magic happens.

When you approach fundraising strategically, your supporters and donors will see your organization in a completely different light. An entity that can successfully produce a black-tie gala fundraiser will be looked at differently by the community. Producing a strategic fundraising auction tells foundations and high net worth individuals that you're playing at a different level, that you're taking your donor development seriously.

Robin Godfrey, executive director of GALA Choruses, says, “You must move all the puzzle pieces of fundraising together. If you want to inspire your $50 dollar silent auction bidder to be a $1,000 donor, you have to convince that donor that you'll spend their gift wisely and are worthy and capable of their gift.” Additionally, your organization's public persona must reflect that you are worthy and capable of receiving larger gifts. You can't improve your public persona with a silent auction or a bake sale.

Create the Greatest Impact—A Strategic Donor Cultivation Plan

What happens after your doors close and guests go home? Nothing, unless you design intentional strategic actions to show your gratitude, inspire effective communication, invite guests to be further involved, and focus your staff and volunteers on donor engagement and retention. Attracting and retaining fundraising donors is a key priority. Go that extra mile to personally connect with your auction guests, sponsors, donors, and volunteers. It really means the world to them to be part of your nonprofit's future success!

While you're on the phone, brief them with exciting news about your cause and share success stories about programs they love, and services that are meaningful to them. Personally stay involved with your donors and share with them what a difference their wonderful support is making.

The ultimate goal is to inspire your donors to stay with you, now and into the future. There are numerous opportunities along the way for them to connect more deeply with your mission. Here are some meaningful ways that donors can become more engaged: become a volunteer, join your auction leadership team, attend other events and cause-related activities, serve on your board of directors, become a sponsor, participate financially in the annual appeal, invest as a major donor, donate to a capital campaign, give a legacy gift, make a charitable bequest, and most of all, offer their unique gift of influence to introduce others to your great cause.

Development professionals dedicate their lives to this effort, and they've learned the nuanced skills required to develop strategic advancement plans. They know that cultivating donors is a personalized approach that extends far beyond the night of a fundraising auction event and that it can take many years to steward a donor. Be sure to make use of the outstanding experience and other resources offered by your professional fundraising executives. Your auction fundraiser is a springboard for long-term donor engagement and a showcase for your cause. The big idea is to create a strategic plan to engage your bidders and guests after your event—and by that I mean for years, even decades, after your event.

Lynn Sobel of Lynn Sobel & Associates explains,

Some nonprofits spend the bulk of their efforts getting ready for the gala. It's great to have a good party but that is only the beginning. The gala is your opportunity to introduce guests to your organization and to begin to cultivate their passion for your mission. As Humphrey Bogart says in Casablanca, this is the beginning of a beautiful friendship! After the event, call the donors the next day to thank them. Nothing says gratitude like an immediate thank you. Also send an e-mail once you know the financial results of the event. Share those results and thank them again. As the year progresses, keep your donors updated on events and happenings.⁶

Get to the Heart of What Matters

I would like to give you a special gift, my “MIT Strategic Giving Program.”

I have created my signature donor impact exercise to get to the heart of why giving matters. This powerful thought exercise can help your staff, volunteers, speakers, donors, event team members, and board members connect with your donors. By telling a true and compelling story, you will quickly communicate the emotional impact of the donors' gifts. When you and your team participate in my “MIT Strategic Giving Program,” you'll send off emotional sparks that ignite giving. You can then design a riveting impact story so your donors can deeply feel how their gifts make a difference. And that's what will make them want to stay connected with you, now and well into the future.

Too many organizations pontificate about mission statements, spew out lists of programs, and thrash about with boring statistics. Go deeper. If you want to significantly increase fundraising and donor loyalty, communicate true impact from your donor's perspective. Try this thought exercise with your stakeholders, and see what insights it brings.

The Power of a Story

There's one final story I'd like to share with you. I was teaching my “MIT Strategic Giving Program” at a workshop for nonprofit leaders and corporate sponsors. I was explaining how to personally coach board members, clients, event speakers, and celebrities to powerfully share an emotional story that would inspire generous giving for a fund-a-need appeal.

“Who has a compelling story that shows how your organization really impacted someone's life?” I asked.

Every hand flew up.

“I do!” A gentleman named Dennis stepped right up front, smiling brightly. “Well,” he said, “there was this boy about 10 years old who lived in a blue-collar tenement neighborhood. One day on the way home from school, four kids walked at him, pushed him, kicked him, and left him curled in a ball on the ground. When he came home, his father took him over to the local Boys Club. This boy wasn't an athlete, but he found something that he could do—boxing. He loved that there was something for every kid who needed it most. It gave him newfound confidence, and he made a lot more friends from all neighborhoods. Most of all, he felt safe and confident because this was a fun, great place for kids.”

I asked my famous question: “So what? What does that story mean to you?”

Dennis became visibly choked up, looked down, and shuffled his feet. After a moment, he looked up again with glistening eyes and said, “That young boy…was me.”

He continued:

Boys and Girls Club changed my life, I felt that I was not alone, I was part of something bigger than me. I felt the camaraderie of caring adults and kids that has grown into lifelong relationships. That's why I believe so deeply in their work. My name is Dennis McCarthy, and today I'm the director of development for this organization. And I'm so proud that for the last 10 years I've been a mentor to a boy, Jio, who doesn't have a dad… He's like my son.⁷

Just like Dennis, we all have transformational stories that will inspire others. Will you pass yours forward? Will you consider telling your stories with your donors, friends, and colleagues? You'll inspire others to tell why they care, too. That's how to continue to build a community of champions for your cause year-round.

It's an honor and a privilege to raise funds and connect people so they can make an impact for a cause that impassions them. Through the lens of powerful strategic auction fundraising, I invite you to transform your traditional special event into an inspirational culture of giving.

Thank you for reading my book, for sharing your story, and for passing it forward. I wish you unprecedented success. I'm eager to help you transform your fundraising and donor development. Please feel free to write to me and share your ideas at [email protected]. Please visit www.AHigherBid.com.

I invite you to tell your stories everywhere. Share your passion about your cause, and tell us all why you love what you do. To quote Dr. Seuss, “To the world, you may be one person. But to one person, you may be the world.”