Budgets for fundraising galas vary dramatically by organization. Whereas you might have access to a free venue and a donated meal, other groups must pay for those expenses.
Nonetheless, if we look at the budgets of gala committees across the country, we see some common expenses.
The largest checks are often written to the venue and the caterer. (In the case of a hotel venue, the venue and caterer are typically the same.)
Interestingly, I’m working with a nonprofit whereby the largest check they write will be for entertainment. The organization is paying for a well-known person to speak, with the hope his presence will drive substantial ticket sales. I’m curious to see if this decision pans out for them.
Here’s the irony of our budget triangle: The vendor typically receiving the largest check rarely has the same mission as you.
Let me explain it using vendor examples.
- CATERING: Will a guest donate more money that night if the meal is better than expected? Probably not. A guest will enjoy the meal, but they won’t bid another $500 in the live auction because of it. The caterer’s mission is to provide a delicious meal; not raise more money for your cause.
- FLORIST: Will a guest donate more money because the centerpieces from the florist are exceptional? No. The florist’s mission is to provide pretty centerpieces, not raise more money for your cause.
- USPS: What about the US Postal Service? Will the mailman deliver your invitation in such a way that a new guest will decide to buy a ticket? No. The USPS has a mission of delivering timely mail; not raise more money for your cause.
- VENUE: Does a new / compelling / interesting venue raise money? An unusual space might attract more guests, especially if it’s usually something “off-limits” to the public. You’ll sell more tickets, but that doesn’t always translate to more money given onsite. The venue has a mission of providing a safe facility, not raise more money for your cause.
- ENTERTAINMENT: What about a kick-ass band? If you budget more money for a band and get someone REALLY good, will you raise more money? If the entertainer’s name is Bruce Springsteen, Billy Joel, or Taylor Swift, you’ll sell more tickets and – similar to my comment about the venue — it might equate to more profit. But if you’re spending a lot more to hire a local “better” band, save your money. The band’s mission is to get people dancing, not raise more money for your cause.
Here’s the bottom line.
The ONLY vendor who shares your mission of raising money is your benefit auctioneer.
Your auctioneer is a professional sales person with the singular goal of getting guests to donate more money. To accomplish this goal, auctioneers use their personality, charisma and chant (the “fast talk”). They facilitate the event so it has momentum. They cajole and entertain.
And if you’re using a good benefit auctioneer, you’ll usually get additional ideas prior to the event that will also help you raise more money. The best auctioneers will consult with you.
So when it comes to selecting vendors, where do you think your most important decision lies?
Your biggest decision should be who to hire as your fundraising auctioneer. Your auctioneer is the ONLY vendor sharing your mission of raising money.
