The Top Trends in Fundraising Auctions in 2022

During 2022 we saw a return to in-person fundraising almost exclusively, and as the year progressed certain trends emerged in fundraising auctions. Now that the year is officially over, let’s take a look at the biggest trends:

Tardy Crowds

People waited longer to commit to attending fundraising events. There were a few events that sold out immediately, but most events saw a nerve-wracking portion of their crowd wait until the last minute to purchase tickets. It seems that post-pandemic, people are less willing to commit to an in-person event in advance. One possible explanation is virtual events required little or no pre-commitment, and people became accustomed to that. Or some people are still nervous about committing to anything, given the climate.

However you look at it, last-minute registrations are always a nerve-wracking challenge, especially with a catering deadline looming. Knowing that 15-25% of your crowd may wait until the last week to register doesn’t make it psychologically easier to deal with, but it does give you advanced warning that you should plan on some strategies to work with it.

Smaller Crowds

Less people were ready to return to in-person fundraising events. Some people may not have felt comfortable being extremely social, instead choosing to stay home and avoid crowds. Others may have simply moved on from the organization or event. Whatever the cause, most events saw a downturn in the number of attendees.

Smaller crowds did not mean lower proceeds in 2022

Loud Crowds

It started as a novelty as the first in-person post-pandemic events took place: Even though crowds were smaller than pre-pandemic, they were also louder than they’d ever been before. At first, we thought it was simply because people were happy to be back in person for the first time in years, but that energy carried throughout the entire year. Every event was louder than it had ever been before. Crowds weren’t just happy to be back in person in February, they were thrilled to party together in March, July, and November. There may have been less people in the room, but they were happier and more motivated to be there.

More Philanthropic

Smaller crowds? Yes. Louder? Absolutely. But also, more giving. On the whole, people donated more per-person than we saw pre-pandemic. Smaller crowds were able to achieve or exceed results from pre-pandemic events, sometimes with a radical reduction in crowd size.

San Francisco’s largest food and wine event reduced its crowd from 1,000 to 500 people and raised as much as it had pre-pandemic. A South Bay event with a slightly smaller crowd than “normal” experienced a three-times increase in giving. These are both extreme examples, but they represent a wealth of other events that had similar experiences. Overall, people who were willing to show up did so, with a passion.

Auction Lots Returned to Normal

Our answer to the perennially popular question “what are the hottest lots right now?” started to sound very familiar to clients who have worked with us for many years. Because what was hot in 2022 was very similar to what was hot in 2019.

Trips regained their popularity as travel increased. Dining and entertainment reemerged as some of the most profitable auction lots in live auctions. Experiences were popular again, as were relationship-based lots. One of the hottest categories of auction lots last year were buy-in parties (aka sign-up parties, buy-a-spots, etc.), which made a huge comeback post-pandemic.

You can see great examples of what was hot in 2022 in our annual list of the “Most Exciting Lots of the Year.”

The Death of Hybrid

The final trend of 2022 was the disappearance of virtual and hybrid events. You can read about this in more detail in this blog post, but the short version is people wanted to be back in person, not attending events virtually.

What will 2023 hold for fundraising events? Stay tuned for our next post on predictions for the upcoming year.

What Became of Hybrid Events?

When the pandemic first struck and virtual events became the go-to method for conducting fundraising auctions, hybrid events seemed to offer so much potential. Hybrid events offered many promises, including the capability to bridge the divide between attendees eager to be back in the room together and crowds that still wanted to remain socially distant.

Two years later, what became of hybrid events? The short answer is they never lived up to their promise. The long answer is slightly more nuanced. Once in-person fundraising became an option, would-be supporters were separated into two distinct camps: those who were ready to be back in person, and those who were not.

Hybrid galas never truly took off

The at-home crowd seldom met financial expectations, let alone donated or spent enough to justify cost.

The people who wanted to be in-person were really ready to get out of the house and leave the virtual world behind. They were eager to gather, eager to party, and eager to support the cause. If they couldn’t get tickets to attend an event in person, there was no way they were going to log on to a virtual gala: they simply wouldn’t attend.

Those who chose to remain socially distant were less likely to purchase tickets for an in-person gala, obviously, but they were also less likely to log on for a virtual event. Multiple times we witnessed organizations work really hard to appease the “at-home crowd,” only to see tickets sales flag for the online event. And on those rare occasions when there were a decent number of online attendees, we seldom saw the level of participation we were hoping for from the online crowd. Simply put: virtual crowds did not donate or spend much within the hybrid model.

Which leads to the final reason hybrid events didn’t succeed: cost. Adding a hybrid component to an in-person event at least doubles the associated AV costs, and more than doubles the workload for event planning staff. And if the virtual crowd isn’t going to show up and spend money, those costs simply are not worth it. We saw a fall ’22 event spend over $15,000 on the virtual component of their hybrid event, only to have 12 people log on to watch the show.

This isn’t to say that there were not successful hybrid events; there were. We participated in hybrid events where the online audience generated over $155,000 in the fund-a-need, adding 33% to the overall take. And another event where the at-home crowd donated more than the in-person crowd. But these events were the exceptions, not the rule.

By the time crowds could gather in-person again, they were all-in or all-out, there was no middle ground.

Now is NOT the Time to NOT Be Fundraising

Many organizations are having a difficult time fundraising right now. Or rather, they are having a hard time justifying to themselves that they should be fundraising right now. They feel that since they are not a direct service organization feeding the needy, or providing PPE to front line workers, or helping maintain a roof over people’s heads, they don’t deserve to ask for money.

It is an understandable sentiment, but one that may prove to be extremely self-harmful. If you are an organization that is dependent upon annual fundraising efforts for survival, 2020 may be the most important year to be asking your donors to support you.

We know from experience that if you do not ask supporters for donations one year, it is harder to get them to engage the following year. People who are used to being asked to support you on an annual basis won’t simply stockpile that cash on your behalf. They look elsewhere to donate and give another organization the opportunity to build a meaningful relationship.

Now, more than ever, is the time to be reaching out to your supporters and engaging them to support you.

This tendency is being heavily multiplied right now since we also know that in an economic downturn, donors don’t stop giving, they simply reduce the number of organizations to which they give. They pull back and fortify the organizations they perceive to need them most.

During 2008, for example, if a donor usually donated $10,000 across five organizations, the trend we saw was to reduce the number of events they attended and possibly increase the donation per event. So a donor would attend three events and donate $10,000 to each, or two events and donate $15,000 to each. They didn’t stop giving, but they became more selective in their giving. Organizations who were able to clearly and effectively communicate the immediacy and relevance of their need were able to convince these retracting donors to fortify them, and not another organization.

Which brings us to right now: you may feel like now is not the time to be asking for money. You may feel like the right thing to do is to encourage people to support our front-line health care workers, a food bank, or another organization that is directly addressing our current crisis. It is a valid and understandable feeling, and those organizations deserve support. But so does yours.

I am a firm proponent of honest, engaging fundraising. So indulge me three questions:

• Has your need become greater since the outbreak of the Coronavirus?

• Do your clients need you?

• Are you dependent upon fundraising to survive?

If you answered yes to any of those questions, you have an honest, engaging reason to reach out to your donor base and ask them to support you. If you answered “yes” to all of those questions, you should undoubtedly be fundraising this year.

My final thought: people want to give money to more than just one set of causes. Yes, people want to support direct service organizations; but they still want to support the arts, and their kids’ school, and…well…you.

How to Knock Your Next Fundraising Auction Out of the Park

I was recently contacted by Anthony Wilson, founder of Groupfinity, about participating in his podcast series. Groupfinity is a new resource for volunteers and volunteer organizations, committed to providing support and tools for success.

Anthony contacted me because he had served on a number of fundraising auction committees, but had never worked with a professional fundraising auctioneer and consultant before. He had a lot of questions about best practices, and once we got rolling our conversation was, as you can imagine, extensive. I ended up providing him with enough material for two podcasts. We covered myriad topics, from how many volunteers it takes to make an auction successful, to the goals of fundraising auctions, to how to leverage your board to make your next fundraising auction successful.

In short, it was a distillation of my entire philosophy down to an hour of podcast. You can find the entire podcast here, and the timestamps below outline the entire podcast.

[2:48] How many people do you have who are committed to volunteer to make the auction successful
[3:08] For an auction to be successful you have to have a couple of key components taken care of
[3:52] Get people you know have capacity and are prepared to support your event/organization
[4:12] Every event is made by 15 bidders
[4:42] You need people who have connections to invite your supporters
[5:02] The goals of a fundraising auction is three fold 1 Raise money 2 Tell your story 3 Engage new supporters
[6:47] For an event chair, you’ll spend 700 hours over 9 months
[7:39] If you’re looking for someone to chair your fundraising auction, find the busiest person you know
[9:58] In putting together a fundraising auction, it has to be FUN and it has to be FUNdraising
[10:28] Don’t throw a big party and then hit them over the head with an auction when they get there
[15:14] Fund a Need
[16:02] Keys to making your Fund a Need successful
[19:15] 7 Keys to a Fund a Need
[20:35] Fundraising is conversation with your community
[21:00] Talk to your donors to see what they’re interested in supporting
[22:20] We need somebody to get the ball rolling
[23:33] An auction breaks into 3 groups of people
[25:38] Your board needs to do 3 things to make the auction successful
[27:58] What item can I count on you to help bid up?
[28:39] Peer pressure drives donations
[28:56] Fundraising auctions are a place for people to make donations in a public setting

Gamblers like to know the odds

Raffles are an important revenue generator for most fundraising events. They provide a low-cost entry point for attendees to participate while simultaneously helping raise significant amounts. We consistently see raffles that raise $5,000 - $10,000 and occasionally see them in the $15,000 - $25,000 range.

Most people think the prize is the most important piece of a raffle and focus all of their attention on finding something they think will have universal appeal. While the prize is important, I argue that the number of tickets you are going to make available is even more crucial. 

Gamblers like to know the odds before they put down their money. When you limit the number of available tickets for a raffle, you are giving people a clear understanding of their odds. And a perceived “good chance” encourages people to pay a higher price to play.

Unlimited $25 raffle tickets aren’t as appealing – from a gambling standpoint – as 1 of 100 tickets at $50 each. Who knows how many people are going to buy one of those $25 tickets? But the $50 ticket? There are only 100 of those, and odds resonate with gamblers.

By limiting supply you also enable your staff or volunteers to create a sense of urgency: “Do you want a 1 in 100 chance to win this trip to Hawaii? There are only 50 chances left…” Tickets will run out. Buy yours now. For a limited time only.

There are a number of calculations that go into deciding how many tickets you should make available for a particular raffle and how much you should charge per ticket. First and foremost, you need to determine how much you want to raise in your raffle. Our recommendation is that any raffle should raise at least double the value of the donation.

Then you have to calculate how many tickets you think you could sell. If you’ve never done a raffle before and have no data to rely on, just know that you can’t expect 100% of your attendees to buy raffle tickets. Between 15% and 20% of your attendees is a reasonable assumption, if the raffle is compelling.

It is always preferable to have more demand than supply, so people will rush to get their tickets next year. Limit the number of tickets and increase the amount you raise in your raffle. People who participate in raffles are gamblers, and every gambler likes to think they are getting good odds.