Sunday, February 10, 2019

Charity Myth "BUSTED"

Charity Myth "BUSTED": Many charities believe that it is a bad decision to utilize auction items which are "consigned" - OR - the employees of the charities believe that the charity itself has a rule that they can not use them. The question is why? 

To prove this is a myth and/or a mistake, answer these and see if it makes sense:

 Aren't employees of the charities paid to help them raise awareness, ultimately raising funds?
 Does the charity pay a landlord to rent office space?
 Does the charity pay for office furniture, a copier, supplies and marketing materials?
 When holding a fundraiser, does the charity pay the venue, pay for food & drinks and then mark up the cost of the tickets?
 Some charities attest that their donated items sell for their retail value if not above, however can not prove this to be fact.
 Charities rarely know their fundraising event "Net" but report the "Gross" to their Board of Directors.
 Does the charity pay for Decorations, a band or DJ?

The answer to all of these questions is "Yes." So why then when making the most important decision about the items which will raise them the maximum amount of money have to be donated or free?

 Without checking the reality of the bids, isn't it true that charities never go back and check the winning bids on the donated items in comparison to their retail values?
Does that make sense? It's common sense here.
 Do charities track what the "Free Items" actually cost? They sell for 1/4 of what they are worth, many don't sell at all, the time it took to get donated items plus the fuel expenses?
 Charities who believe this is a wise decision further decise to agree to major expenses up and to the point when the most important part, fundraising is at play. They pay for everything else but the items they need to raise the money with.
 The Answer - A (3) year intensive study across the United States proved that donated items only bring maximum bids of 1/8th to 1/4 of their retail value and many do not receive bids at all.
 Charities host local events, with their guests are from the same area with items donated by local businesses.
 The facts are that if the guests wanted those items, they would have gone and bought them theirself.
 During the study, 175 business owners were questioned about their donation habits: All reported that they are repeatedly asked for donations and can not give to everyone. If they do donate an item, it is something that is not selling in their stores.
These are facts, this is reality. So why then do charities believe this is a profitable way of fundraising?