This is Part 2 of a 3-part series about organizing an auction to raise funds for your nonprofit organization. Part 1 describes How to Get Started on Planning an Auction. Part 3 describes How to Get High Quality Items Donated to Your Auction.

An auction can be a fun way to raise funds and engage members and potential members with your nonprofit organization. Your auction can even be part of a larger event or celebration with entertainment that draws in crowds of people. But auctions are also among the most time-consuming ways to raise money for a nonprofit organization. If you decide you'd like to try an auction, the staging tips listed below can help you make your organization's fundraising auction a success.

Appoint a Strong Leader

Your organization should appoint a strong leader to take charge of auction planning and preparations. Your auction leader should make sure these key things happen:

• Benchmarks are established and met
• Solicitations of potential donations are made properly
• Thank you notes are sent promptly
• Marketing is in place well in advance of your event
• The venue is secured and appropriate for your event
• The right people — that is, people who can afford to bid on big-ticket items — are invited to your event

Make It Festive

Your event should show your organization in the best possible light. The venue will play a large role in the success of your event, as will your catering (a volunteer may provide this), and possibly entertainment. You want people to feel good about spending money on your organization and auction items. Consider providing live music and dancing (and dance lessons) if you think your group will enjoy this. This approach might work best after your first auction or when you expect that most attendees will know one another. You could also consider hosting an open bar. You may be able to find an underwriter for this part of the event if you agree to promote that sponsor prominently near the bar.

Consider a Live Auction

Live auctions are exciting, even for non-bidders, and help add drama to your fundraising program. A live auction requires an auctioneer or someone who functions in this capacity. If you choose to save money by using an amateur, be sure this person is good on his or her feet, a fast talker, and entertaining. Live auctions work well with highly sought-after items or packages. You should also consider including a few accessible items, preferably under $200, to increase participation. Live auction items are generally displayed within the auction space for inspection prior to the event.

Consider a Silent Auction

Silent auctions allow potential bidders to consider items carefully. Silent auctions are generally held in a large, open room with tables that display the item or a representation of the item, such as a hotel brochure for an overnight stay. Bidders can make "silent," anonymous bids by writing their assigned numbers (issued by your organization) on a prepared bid sheet.

Silent auctions are generally broken down into sections that close in increments of 15 minutes. These time increments create enthusiasm for increasing bids at the last minute, generating drama and suspense, and helping to meter out the event's overall energy. The starting bid and bid increments are established on the bid sheet. Designate a volunteer to monitor the progress of silent bids. If an item is receiving no bids at the opening bid level, the volunteer should reduce the opening amount listed, as long as there are no lowest-bid restrictions on the donation.

A combination of a silent and live auction can maximize participation. Silent auction items are often less expensive and might appeal to participants who are less inclined to raise their bid card during a live auction.

Consider 'Bids for Nothing'

When you are thanking auction participants at the end of your event, take the opportunity to talk about your organization's plans for the future. Briefly summarize what your group is hoping to do in the next year, and explain what contributions could do to achieve those goals. Depending on the depth of the pockets in the audience, ask for high-range bids to contribute tax-deductible donations on the spot. If your group is reasonably well-heeled, start with $1000. Move to $500, then $250, then $100, $50, $25, and $10.

Consider a Raffle Tie-in

A raffle is another way to advertise and bolster your auction earnings before the event. However, be aware that raffles in Wisconsin require a state license. The State of Wisconsin Department of Administration provides information on raffle requirements and licenses. You should talk to your accountant to determine if the proceeds from your auction could be considered Unrelated Business Income by the IRS.

If you decide to organize a raffle with your auction, select an auction item with broad appeal (but not the biggest-ticket item) to raffle. You can make at least twice as much raffling this item than auctioning it. For instance, a $200 item raffled at $5 a ticket would bring in $500 if 100 tickets were sold. If each board member sells 10 tickets, you will make your goal. Jointly advertise the raffle and the auction.

Raffles also allow more people to participate in your event who may not be able to attend. Board members and other active members tend to make the best raffle ticket sales people. You can turn ticket-selling into a fun competition by offering an inexpensive award to the person who sells the most raffle tickets.

Promote Your Event

Depending on how well you promote and design your event your organization may be able to generate positive press in your local newspaper. Auction catalogs are a great way to promote your event in advance and to recognize underwriters. Even if your auction is very small, you should advertise your underwriters on your website and make printed versions of your lists available to bidders at your event.

Go to Part 3: How to Select Items for a Fundraising Auction

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