If a group is conducting its first paddle raise (also called a fund a need, mission moment, and other names), “Don’t you think that we’ll make less money in the live auction or the silent auction if we also conduct an appeal?”
No, I don’t. Nor has that proven to be the case at any of the auctions I conduct onsite annually.
Instead, my client just raises more money.
We raise the same or similar live auction revenue. We raise the same or similar silent auction revenue. And by adding in the appeal, we raise another $10,000, $50,000, or $100,000.
Here’s are two reasons why.
1. Smaller gift givers can participate.
Not everyone will participate in your live auction. Most benefit auctioneers agree that only 10-20% of the crowd will be active in the live auction.
So what are all those other guests doing? How are you going to let them participate?
You let them give via the paddle raise.
The paddle raise gets those guests involved in the action. They, too, can raise their hand.
(Early in my career (2009-ish), I was often THANKED after conducting a paddle raise. “You know that thing you did when you asked for money,” the guest will tell me, “After I’d heard you speak, I wanted to donate but I thought it would be too high for my budget. Thank you for going down to a lower level to let me give.”
And before you say, “I bet the live auction givers don’t give again,” let me stop you. They often DO donate again. My second reason explains why they might.
2. The appeal gift is usually 100% tax deductible.
Live auction items are not usually 100% tax deductible. But a donation to an appeal often is!
For guests who are sensitive or savvy on tax matters, it can make a big difference.
Now let me make a wedding-based analogy to further explain my point.
I’ve attended a few weddings during which the bride and groom have a money dance. For a song or two, a guest can dance with either the bride or groom for a fee.
Depending on the crowd, the guests might pay $5 to $100 for the privilege of dancing with one of the newly-married individuals. Given that each of those guests has already given a wedding gift to the couple, anyone who contributes during the money dance is “gifting twice.”
Do they care? I don’t think so. Those that want to dance will dance, regardless of whether they already gave a gift to the couple.
Imagine the scene. The music is jamming, guests are dining on good food and strong drinks, and everyone is chatting. In the midst of this great time, it’s announced that there will be a money dance.
Joe and Helen, two of the guests, cheer and clap with the crowd: “Woohoo!” Joe is excited. He loves weddings and is happy for the couple. He jumps up to grab the bride for a dance.
Does Joe whisk the bride around the floor to a fast polka while gifting her a $20?
OR
Does Joe stop on his way to the dance floor and think, “Wait … we already spent money on this couple. My wife bought bedsheets and I wrapped them earlier today. We already gave them a gift. Where’s my chair?”
I don’t think Joe skulks back to his chair.
The decision to make a cash gift donation occupies a different place in our psyche than the decision to bid in a silent or live auction.
When presented properly to the crowd (and there IS a proper way to present it — not every auctioneer has the authenticity to elicit the same donations), appeals can only build your total auction revenue.
And now that you’ve got “the basics”down, what about the rest?
What about examples of great videos that have been used as introductions prior to the Fund a Need? What about the sample scripts I’ve used in front of groups? What about the three types of Fund a Needs, and learning when to use which?
You can learn all of that (and much more) in Fabulous Fund a Need Secrets. Get the details and see a snippet from the content.
