A Fund-In-Need can be a high-impact, low-effort fundraising vehicle that has the potential to dramatically increase donations generated during a charity-based live auction.

Asking several questions can help in strategizing how to structure the effort, including:

How exactly will the funds be used? Since the funds are “restricted” – meaning they can only be used for the purpose specified, they are not available for anything else including the charity’s “general fund.”

Is there some specific project that is compelling to potential donors? For example, a Fund-In-Need for your child’s school heating system will probably not be as desirable as, say, funding an art teacher or new smart boards for all the classrooms. Donors want to feel personally connected to how the funds are being used.

What overall monetary goals have been set? For example: If it’s an art teacher, the goal may be to cover their salary and supplies for a year; if it’s a Children’s Zoo it may be to renovate all the exhibits.

Can the need be broken down into various parts? For example: The Children’s Zoo renovation may include a new entrance, a renovated walkway and a new animal exhibit, etc. It’s important to know the sub-components and their cost so that during the auctioning process each donation level can be associated with that sub-component which can lead to increased donations.

What are the packages in the Live Auction? The Fund-In-Need is usually inserted into the middle, or end, of a live auction. If there are eight packages, insert at number six or later since the Fund-In-Need is often contributed to by a large portion of the guests. If placed too early in the auction, some donors may feel they’ve given everything they want to.

Here are some of the tactical aspects involved in running a Fund-In-Need:

• Guests get a numbered paddle, or some other way to identify them individually (such as their first initial and last name).

• The auctioneer outlines the specific need, such as a school library, specific zoo exhibit, special museum painting acquisition, etc.

• The total amount of funds required to complete the project or phase is also announced. This gives the audience an understanding of scope.

• The auctioneer starts at the highest level, and all guests who raise their paddles at that level are acknowledged, and their unique paddle number/name is called out by the auctioneer and written down by spotters.

• After the auctioneer feels comfortable that (s)he has exhausted all donors at a particular donation amount, the level is dropped and guests are asked to raise their paddle. The auctioneer continues these steps until the lowest level of donation is flushed out, or all guests have committed funds to the campaign. The benefit of having broken down the project parts is that a particular sub-component can be associated with a donation level. This often leads to greater donations because guests feel a direct connection with how their money will be used.

• The level to start at is dependent on the charity, the size of the audience, and the project the Fund-In-Need is benefiting. Here are some sample levels:

HIGH                                 MEDIUM                            LOW

$25,000                                   $10,000                           $1,000

$10,000                                   $5,000                              $500

$5,000                                     $2,500                              $250

$2,500                                     $1,000                              $100

$1,000                                    $500                                   $50

$500                                        $250                                  $25

• Pre-sell the Fund-In-Need, if possible, by talking to past donors who may be willing to commit to the highest level. It puts a real damper on the effort if no one raises his or her paddle at the first, and highest, level.

• Ensure that enough spotters are stationed throughout the room to point out donors who raise their paddles. The auctioneer will announce each paddle number and a separate person should write each of those numbers down.

• A video or slideshow will help prospective donors visualize how their funds will be used. Show that video immediately preceding the Fund-In-Need.

• Collecting credit card information, either prior to the event or as guests register on-site, will simplify or quicken checkout. Moreover, you won’t lose as many of those well-meaning people who forget to check out as they saunter home at the end of the evening.

• Don’t forget the option, as commercial as it may be, to offer naming rights to some component of the project. In the Children’s Zoo example, perhaps there’s an opportunity for the entrance to be named after a donor at the highest level of donation.

• Finally, if you do your homework your Fund-In-Need can be successful for both the guests – they are able to contribute at a level they feel comfortable and for a cause that they are passionate about, as well as for the charity, who can get to work on an important project based on a relatively low-effort, high impact fundraising vehicle.

[Photo from daveblume via Flickr]

About the author: Layne Gray

As the Founder of Vivanista, Layne is not only an entrepreneur but one of San Francisco's most dedicated volunteer fundraisers who has raised millions for Bay Area charities.

All articles from this author | Author's RSS feed | Follow this author on Twitter

No related posts.