Note: Only the people who took the time to read
this will benefit from it.
Prior to
launching our company, I was involved with several charities involved in the
outdoors. One of the company’s I was
extremely familiar with was and still is “Ducks Unlimited.” Last year, as reported by Charity Navigator,
Ducks Unlimited Total Net Profit was $195,923,938.00. “DU” as they are commonly known by, is a
fundraising machine. This one charity
has fundraising so figured out that they make nearly $200 million dollars each
year. Incredibly successful.
What does “DU”
know that you don’t? They mandate that
anyone fundraising use high quality items which they supply. Now, the items which they supply are not “Consigned”,
the fundraising entities (known as chapters) have to purchase the items
directly from “DU.” After the
fundraising events, the cost of the items is deducted from the Gross of the
event. What does “DU” know that you don’t? The answer is this – they, as well as other
charities who have adopted this practice, know that they must have great items
in order to make much more profit.
Believe it or not, they do not want donated items.
When we
started, our company identified the fact that there were currently 104 Million
charities in the United States. We then
took the idea from charities like “DU/Ducks Unlimited” in regard to using high
quality items and began to introduce it to the charities outside of the outdoor
charities. However, we decided instead
of trying to sell these products to charities, we would consign them. We came up with the plan that charities would
be able to use our items, mark up the starting bid above our costs by at least
20% and no matter how high the profit, they would keep 100% of it. If the item or items did not sell, they could
simply return them at no cost to them. I
understood the importance of it and the fundraising impact it would have for
charities – but unfortunately, the charities did not.
Immediately
we were met with resistance. We heard
commonly “Our charity does not allow us to use items we have to pay for” or “We
only accept donated items” or “We are against using items that are consigned.” What they failed to understand or realize is
simply this – they pay for the venue which they are holding the fundraiser,
they are paying for the food, the decorations, the printing costs, the bar and
everything else but when it came to the tools which would help them raise the
money they need, their thought process shut off completely. They wanted and would only accept totally
free items.
Over the
many years we have been in business, we have studied every single fundraising
trend there is. After specifically
studying donated items, we found that donated items only bring 1/8th
to 1/4 of their full retail value. Why
so little? Because the event is attended
by people who live locally, the event itself is local and the items are donated
by local businesses – if the guests wanted them, they would have gone and
bought them themselves. Furthermore,
after speaking to the same businesses who donated – they informed us that the
items they donate are ones that are not selling in the stores. People are always looking for a deal. The most drastic thing that stood out is that
two (2) of the most common items used in fundraising events are Gift Cards and
Gift Baskets. I have asked our clients
for years this question “How many Gift Baskets did you give away to your family
or friends for the holidays?” and every single time I have been told “None/Zero.” Furthermore, I’ve asked everyone how many
times have you bought yourself a Gift Card?
Again, they laugh and say “Never” – that is why they are both called “GIFT
Cards / GIFT Baskets” because we give them away as gifts. No one will ever pay anywhere near what they
are worth based on this simple observation.
But yet, every single day, charities across the nation still insist on
getting and using these unsuccessful fundraising items as the keys to their
success.
No matter
how hard I tried to tell or convince them, they were not going to do it. Slowly, charities began to accept the idea
and started using our items. Those
charities experienced immense profit and would commonly say “This sounds too
good to be true, what’s the catch?” My
response was and still is “It’s good and it’s true, but it’s not too good to be
true – there is no catch” and I put it (our policy) in writing on our website
and in contracts. Slowly it started to
catch on.
Then one
evening, as if a light bulb went off, an idea came to me which would
revolutionize the use of our items and could possibly even change the thinking
of the charities who refused to use consigned items or items which they had to
pay for. I am going to share it with
you and you too will realize just how brilliant it truly is.
The Secret
is “Underwriting” or Sponsoring the items themselves.
As you are
already well aware of, routinely charities offer differing sponsorship levels –
Gold Sponsorship for $5,000.00, Silver Sponsorship for $2,500.00 etc. Some sponsorship's are much higher. However, the fact of the matter is, most
people can not afford these levels of sponsorship. However, they can afford much lower, much
more affordable monetary sponsorship's such as $250.00.
Here is the
Secret – Businesses such as Real Estate brokers and Agents, Doctors, Lawyers, Accountants,
Dentists, Consultants etc. have nothing to donate other than money. These people are never approached and asked
to donate unlike your local jewelry store.
However, if you offer them a chance to “Sponsor” or “Underwrite” the
cost of an item, they will. Let’s say
you approach Jane from ABC realty. Jane
looks at the items available, chooses one and writes you a check for the cost
of the item. You then place the item on
your Live or Silent Auction with a tent card in front of it reading “Sponsored
by Jane Smith, ABC Realty”, while marking up the “Starting Bid” 20%. When the item gets bid on and no matter how
high it goes, you and your charity now keeps 100% of the funds brought in
because “Jane from ABC Realty” paid for the item and received marketing in
return. WIN WIN.
Now here is
the best part of “The Secret” – If the item does not receive a bid, you simply
return the item back to BW Unlimited and you keep the sponsorship money “Jane
from ABC Realty” gave you. You can not
lose.
Using this
secret “Brought to you by the great people of BW Unlimited Charity Fundraising”,
you will raise more money then you could ever dream of while giving many more
people an opportunity to help you.
For secrets
like this and many more, contact us at www.BWUnlimited.com. We would love to help you EXCEED your
fundraising goals each and every year.
