There are
many myths surrounding charity fundraising which originate back to the 1980’s
or possibly earlier. However, here is just
one of the myths both described and the truth exposed:
MYTH: Using items which you have to pay for is a
bad idea and fundraising business practice.
#1 –
Charities keep 100% of the profit from fully donated items.
#2 – Fundraising
items that have a price or are consigned, draw bids away from donated items.
#3 –
Charity guests prefer to bid on donated items vs. consigned items.
To properly
address this myth, we first have to address the costs which charities easily
incur during the planning of their fundraising events which are not
donated. By understanding and agreeing
that this is true, it will truly show you how “opposite thinking” it is when it
comes to the use of the items which actually raise the funds needed.
When
planning a Gala or other fundraising event, the very first expense you incur is
the rental of the venue along with catering and drinks which comes at an
expense. However, guests pay for tickets
which in turn pays these expenses. Keep
in mind, that there is always “Margin/Profit” placed on each ticket price. Then there is printing of tickets, programs
etc. Then entertainment, both bands and
DJ’s charge for their services. Add in decorations
– all these line items come at a cost.
Rarely will you find any of this donated, especially the venue of your
event. The only item in the above list
that creates profit is the actual tickets that sell.
With that
in mind, after making these decisions, this is where charities turn off their thinking
and this is when the myth kicks in that donated items are the best method to
raise money. However, they incurred
costs easily as described above.
Here is
the “Reality of Donated Items”:
#1 – With
over 1.5 million charities in the United States, businesses are bombarded with
donation requests. They can not possibly
donate to everyone and if they do, routinely it’s something that is not selling
in their stores.
#2 –
Remember, you are hosting a local event with items donated by local businesses
with your guests also living locally. If
your guests wanted those items, they would have gone and bought them
themselves.
#3 – Our guests
don’t spend or bid that high on the items we have.
#4 –
Donated items are only bringing 1/8th to 1/2 of their retail value
at the very most across the United States in any Silent or Live Auction (study
performed by BW Unlimited LLC. over a 3 year period).
#5 – Donated
items do not have a high appeal and routinely have no theme.
#6 –
Everyone is looking for a deal – Common donated items are Gift Certificates and
Gift Baskets.
a. If someone reports that Gift Certificates
are selling at full retail or above, they are lying or have not looked. QUESTION:
Have you ever bought yourself a Gift Certificate? No, that is why they are called “Gift”
certificates – we give them away to someone else as a gift. Routinely, these sell for 1/4 of their retail
value.
b. How many “Gift Baskets” did you give
away to your family or friends for the Holidays? None.
The reason is, no one truly wants them.
Again, routinely these sell for
1/4 of their perceived value.
#7 –
Charities commonly utilize the same donated items year after year such as
someone’s Vacation Home. However, they
fail to understand (2) most important derogatory aspects about this:
a. People know they can go directly to
the donor and get the Vacation Rental either for free or at a very reduced
rate.
b. Each year these items are auctioned,
the appeal and audience goes down and down.
#8 – If an
item that is donated has a significant cost and it sells for 1/4 of it’s retail
and the donor either is a guest at your event or hears about the low selling
price, do you think it will have a negative impact on them donating again? Yes.
#9 – Are the
items actually free? Considering the
time it took to get someone to donate an item, the time it took and the cost of
the gas that it took to drive there and back.
Then the item sells for 1/4 of the retail – ask yourself, was it worth
it?
The
argument against using consigned items normally is based on charities not being
fully educated on the importance or how to properly use them to ensure they are
highly successful.
(Only
with BW Unlimited Charity Fundraising, we advise our clients to increase the
cost of our items by 20% so that on the very first bid, they are profiting –
guaranteed.)
Here is
the how and why this myth is dispelled:
#1 –
Consigned items such as autographed memorabilia, vacation packages, jewelry
etc. are very enticing and will set your event apart from all other local
events. If the items available are
advertised on Social Media, they will draw many more eyes and possible guest
attention.
#2 –
Consigned Items that have high minimum bids will actually raise the bids on
donated items.
#3 –
Guests will not bid high on low value items if that is all that is there to bid
on, however, they will bid extremely high on items which they have never seen
before or are only available through BW Unlimited Charity Fundraising or another
company.
#4 – Guests
routinely place extremely high bids and get into bidding wars over consigned
items which can also be sold multiple times – guaranteeing the charity much
more profit.
#5 –
Consigned items do not cost the Charity anything, the buyer pays for the items,
not the charity. The charity just keeps
100% of the profit. If the items do not
sell, they go back to the provider without a fee of any type. This is exactly like the venue and ticket
prices – however, the profit is not fixed as it is with ticket prices.
#7 –
Charities can have the items “Sponsored” or “Underwritten.”
a. Charities can select as many items as
they would like to utilize and put them in a catalog format along with the cost
of each item.
b. Many more people and businesses can
sponsor at a lower rate than at the normal high-level sponsorships.
c. If “ABC Realty” sponsors an item for
$250.00, they pay the charity for the sponsorship and a “Tent Card” is simply
placed in front of the item saying “Sponsored by ABC Realty.”
d. The bid is started 20% above the cost
– as an example, the winning bid is $500.00 – The charity just profited $500.00
because the sponsor actually paid for the item.
e. If the sponsored item does NOT
receive a bid, the item is returned and the charity keeps the $250.00
sponsorship.
In summary,
I have a question: What is the difference
between paying for the venue, the food and drinks – OR – having high quality
items that have a cost? Shouldn’t you
have great items for people to bid on instead of free items?
In
closing, if someone is against the use of consignment items from either BW
Unlimited Charity Fundraising or some other provider, educate them on the
above. Just ask our 1,000’s of clients
across the United States if what I say above is not true. If you have used consignment items and were
unsuccessful, it’s possible you did not use them correctly.
If you
would like more information on how to be successful using consigned items or
would like to comment differently, please contact us at www.BWUnlimited.com, we would love to
help you.
BW
Unlimited Charity Fundraising is a North American Charity Fundraising leader in
a convenient “One Stop Shop” setting. We
provide a host of consignment auction items such as 100% authentic autographed
memorabilia, worldwide vacation packages, beautiful jewelry and incredible décor. We also assist our charity clients with a
host of charity fundraising event services.
Please contact us to learn more.