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Fundraising auctions are an effective way to raise money for your cause. However, in order to get the most out of your fundraiser, there are a few things that you need to sort out.
One such thing is the type of auction that best fits your goals. Two of the most popular options for fundraising auctions are live and silent auctions.
In order to make an informed choice, you need to know how each type of auction works.
Live auction
In a live auction, bidders are gathered in a venue where they choose which items to place their bids on. Bid increments increase until the highest bidder is determined. An auctioneer facilitates the bidding process.
Live auctions can be real crowd-pleasers with the auctioneer drumming up excitement for the items being auctioned as well as the cause championed by your non-profit organization.
But when, exactly, should you choose a live auction format?
This type of auction is ideal if your nonprofit is looking to make big money off of an auction. Live auctions are perfect for big, crowd-pleasing items like rare wines & spirits or unique trips and experiences.
Live auctions are also a great way to introduce your fledgling organization to your target audience and your community. In fact, a live auction can double as a networking event where you can bring together community leaders, donors, and your charity’s corporate sponsors.
Live auctions can also be used either to kick off the year with a bang or as a year-ender.
The great thing about live auctions is that these can be easily scaled down and incorporated into your non-profit’s other events.
Pros and cons
What are the advantages and disadvantages of holding a live auction?
Due to the element of competition, live auction events are livelier. That sense of competition also brings urgency to the bidding process. Participants are kept on their toes, watching closely as new bids come up.
Furthermore, live auctions are an event unto themselves — with attendees dressed in their best clothes, mingling with your guests, being entertained by the performers you have invited.
With the help of a seasoned auctioneer, each item can get the time and details it deserves in the crowd. Throwing in buzz words and general enthusiasm, a live auctioneer can drum up the right amount of excitement that gets hands in the air bidding.
But despite these pros, live auctions have a few disadvantages that you need to be aware of.
For starters, live auctions can be costly. Among the costs that you need to account for are the rental for the venue, tables, and chairs, decor, food and beverage, and the professional fee of the auctioneer. Some non-profit organizations can forgo some of these expenses by soliciting donations.
Another drawback of live auction events is that they need to be planned and organized efficiently, just like any other event. You need to know when is the best time to start your live auction during your event so that people are there and attentive and not focused on something else, like dinner. This may require a substantial investment of time, money, effort, and personnel.
Finally, one key challenge that your organization needs to be prepared for is finding high-value items that appeal to the bidders. On top of that, you need to consider the diversity of the items that you are planning to auction off plus the security of these. The same items getting bid on over and over again will hurt you by the end of the auction when no one is raising their hand.
Silent auction
Unlike live auctions where an auctioneer presides over the bidding process, in a silent auction, bidders check out the individual items up for auction displayed on a table. Bids are written as pledges which are displayed beside an item that is being auctioned off. Each bidder is then given a chance to pledge a higher bid.
To a large extent, silent auctions are similar to a retail shopping experience where bidders can check the items on display and walk around and bid at their own pace. Silent auctions can last anywhere between a few hours to a whole day.
Like live auctions, silent auctions can be seamlessly integrated into an event. But apart from that, you can hold a silent auction online through the use of a software.
Pros and cons
Compared to live auctions, silent auctions cost considerably less. Also, due to the nature of silent auctions, you might be able to entice more participants, some of whom may not be comfortable with the fast-paced, social nature of live auctions. Bidders can check out the items on display while they network with your other guests and enjoy the different activities you have lined up for your event.
The element of competition still remains as bidders go back and forth with each other trying to outbid the other.
Silent auctions also benefit from a diversity of items that keep bidders entertained and surprise them as they move along the table or scroll down the auction page on their phone.
There are a few downsides, though. For one, you have to find the right balance between the number of charity auction items to auction off and the number of guests in attendance.
You will also need to pay attention to how you display each item. Otherwise, some of these may be overlooked by potential bidders.
Finally, you have to find the best check-in and check-out process in order to abide by existing regulations as well as avoid fraud.
The best of both worlds
In some cases, you do not have to choose between having a live or silent auction. If you have enough resources and you can source enough items to auction off, you can hold a silent auction while you have an ongoing live auction. This can help boost your event’s potential donations and provide donors with a unique auction experience. Leave the most unique items up for the live auction while great physical items make for perfect displays on the auction tables.
AUTHOR BIO
Darran Brown is the CEO and Founder of Go Charity. A graduate of UMASS Amherst, Darran has spent the last 20 years managing auctions across the United States. Having run some of the most successful live and silent auctions in the US, Darran has the insider know-how to every aspect of the industry. From memorabilia to trips and experience hospitality to fundraising 101, Darran is the leading expert on auction management and fundraising success.
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