Auctions have long been powerful events for nonprofits to raise awareness for their cause, further engage with their supporters, and raise critical funding. Silent auctions are one type of event within the larger umbrella of a charity auction.
If you are a fundraising professional within the nonprofit sector, you likely have some degree of knowledge about auctions—both silent and otherwise. But perhaps you’ve never hosted one yourself, or you’re looking for a refresher before planning your next big event.
That’s why we’ve put together this guide to pulling off a successful silent auction. We’ll cover the following topics to get you better prepared to host your own auction and bring in the big bucks for your organization:
Here at Snowball, we pride ourselves in our ability to help schools, churches, and other nonprofits raise the funds that they need to thrive. Are you ready to take your fundraising to the next level with a silent auction? Let’s jump in!
What Is a Silent Auction?
A silent auction is a type of charity event where participants are given the chance to browse items that are up for auction. More specifically, guests bid “silently” by writing their offer on a bid sheet, rather than aloud to an auctioneer.
As participants explore your available items, individuals are constantly one-upping each other by placing a slightly higher bid than the person before them. At the conclusion of the event, the individual with the highest bid “wins” the item in question, pays the agreed-upon amount, and is gifted the item. Proceeds from bids are then collected and go toward funding your mission.
How Does a Silent Auction Work?
Before you can get started planning your own event, it’s a good idea to first gain a solid understanding of the way silent auctions function. The biggest question is usually concerning how participants place bids—and this can vary depending on the type of auction you choose to host.
For a traditional silent auction, items are set up throughout a physical space with a sheet of paper, called a bid sheet, pertaining to each one. When participants find an item they’d like, they simply write their bid amount (in dollars) with their anonymous bidding number that they receive upon registration or check-in.
On the other hand, auction software provides a streamlined, tech-based alternative in which attendees can quickly and easily bid from their phones instead. Then, users can even be notified when they’ve been outbid and make the decision to raise their bid and stay in the game.
Silent vs. Live Auctions
When you hear the word auction, your mind might first go toward a rowdy event with a personable auctioneer and a booming voice yelling, “going once … going twice … sold!” While this can certainly be an excellent way to raise money for your cause, some events are better suited for the silent version of an auction. So how do you choose which one is best for your upcoming fundraiser?
Let’s take a look at some of the key differences between the two main types of auctions:
- Silent auctions: At a silent auction, items are on display (either physically or in a catalog online) and guests are encouraged to browse and place bids anonymously via bid sheet or mobile bidding software. Items are typically up for bid for hours or days at a time.
- Live auctions: At a live auction, items are presented one at a time by an auctioneer who encourages guests to raise their hands or signs to communicate a bid. Typically, an auctioneer runs through quickly increasing dollar amounts until the highest bidder wins—all taking place in minutes.
Both types of events are powerful fundraisers that, when pulled off well, can bring in substantial revenue for your organization. To decide which is best, consider your particular nonprofit audience and their desires. For example, if you’re fundraising for an elementary school, you would likely see huge success with a live auction and a notable auctioneer—like a favorite teacher or principal. On the other hand, if your donor base is more upscale, you might opt for a silent auction alongside a regal gala or dinner.
You may even be able to incorporate elements of each in your unique fundraising event!
Virtual Silent Auctions
Due to COVID-19 and the subsequent move to entirely virtual fundraising practices, the rise of virtual silent auctions has been significant. However, even outside the scope of the pandemic, online auctions can provide unique benefits to organizations and their supporters that traditional in-person events cannot.
For example, virtual silent auctions offer the following key perks:
- Expanded audience: Hosting a virtual auction rather than a face-to-face one allows you to widen your reach and invite guests who are outside your typical geographic range. Additionally, supporters who may have been unable to attend a set event due to time restraints might be able to participate in an ongoing, virtual auction instead.
- Reallocated budget: By not having to shell out thousands of dollars for venue, staff, and catering costs, virtual auctions can be held for a significantly lower price. That money you save can either be put toward procuring unique and worthwhile items for your auction or reinvested in your program.
Regardless of whether your event is held virtually or in-person, a silent auction is an excellent move for any charitable organization. Donors cherish the opportunity to support your cause while also receiving a tangible item in return—it’s a win-win!
How to Run a Silent Auction
Now that you know the basics of silent auctions—both virtual and in-person—you’re ready to walk through the steps involved in planning and hosting the event itself.
Like any fundraiser, extensive preparation is crucial for ensuring a successful event. An auction may require more planning than most events. Here are four key stages to keep in mind when prepping for your silent auction:
1. Procuring auction items
Your auction items are the star of the show, so it’s important to get started with this step as early as possible—typically, 3-6 months before your planned event is a good time frame. Otherwise, you run the risk of hosting an event with little to no engaging and high-demand items, and therefore little to no revenue collection.
- Create a procurement team: Build a team of 5-6 dedicated individuals—preferably a combination of nonprofit staff and volunteers—who are willing to solicit auction items from family, friends, community members, and local businesses.
- Start with a donation wish list: Having a list of specific items to collect makes the whole process simpler for both the procurement team and the donors in question. Just be sure to include items of various price ranges so that individuals can opt for something they’d reasonably be able to give.
- Adjust your items to your audience: A local elementary school will have a much different supporter base than a large-scale nonprofit, and therefore auction items should be adjusted as such. For example, it’s important to take average income and/or donation size into account when choosing items to avoid ending up with too-costly items that attendees cannot afford.
When you procure high-demand items like airline tickets, exclusive experiences, and unique gift baskets, you can set your silent auction up for huge success. Not only will your attendees be more engaged in the process with higher stakes, but you’ll also bring in more in total revenue through sales and even donations.
2. Preparing a venue
This is another step that should be completed well in advance for best results. That’s because your venue (for an in-person event) is likely going to be one of your most significant expenses, which will in turn dictate the rest of your event-planning budget. For a physical event, be sure to choose a venue that’s in a convenient location for the majority of your local supporters to allow for high levels of attendance. You’ll also want to decorate the venue to match your organization and/or theme of the event. This will provide a more immersive experience for attendees and lead to increased engagement — and donations.
For a virtual action, your “venue” will be the platform from which participants will place their bids, such as a mobile app or website.
3. Promoting your event
Your promotion strategy is one of the most important elements of your silent auction prep. After all, your dedicated supporters must first be made aware of your event plans beforehand in order to attend and participate. Here are a few easy marketing tactics to get the word out about your auction:
- Invite donors via email. Email is a favorite for donor communications for many reasons. For one, you can easily invite thousands of individuals in just a few clicks. Plus, email marketing software allows you to personalize messages, including your subject line and salutation, to address each donor by name—without having to send a separate invite to each. Once a supporter receives your invitation, they can quickly navigate to your registration page with a bright and eye-catching call to action.
- Send physical invitations. Everyone loves getting mail, especially when it’s not a bill. That’s why sending invitations via direct mail can be an effective way to inform supporters of your upcoming event and boost excitement from the beginning. Plus, your physical invite can serve as a powerful reminder for individuals who might hang it on their refrigerator or leave it around the house.
- Share on social media. This is a great way to spread the word far and wide, including to potential guests who you may not have on your email or mailing lists. Plus, you can encourage current supporters to interact with and share your posts with their own social media networks, effectively expanding your reach and introducing you to new avenues of support. Be sure to include the date and time, location (if applicable), and a link to register (if applicable) in every post.
While your outreach strategies will likely be adjusted to your particular supporter base—i.e. how do your donors typically respond most positively to your communications?—it’s a good practice to implement multiple of these key suggestions. In fact, studies show that a multi-channel marketing strategy can lead to 23x higher levels of consumer satisfaction.
4. Following up after the auction
The way you handle post-auction operations is crucial because it typically plays a huge role in whether your attendees return for future events. You don’t want to leave them with a bad taste in their mouth! Be sure to have a carefully organized, streamlined checkout process for your winners so that they can pay, receive their items, and head out without complication.
A few days later, be sure to thank all of your guests for participating and ask them to fill out a quick survey. This way you can get a feel for what your attendees really thought about your event, including what can be improved upon for next time.
Each of these is a key element in a successful auction, and each is something you don’t want to leave to the last minute—or to chance! When participants and attendees can tell you put a lot of time, effort, and thought into pulling off the event, they’re more likely to get involved and spend their hard-earned money for your mission.
Silent Auction Top Tips
Even if this is your first time planning a silent auction, the good news is that thousands of organizations before you have helped paved the way for a successful event—and can provide some best practices to ensure yours gets off without a hitch. Let’s walk through some tried-and-true tips to get you started.
1. Set a theme
While not every auction has to be a themed one, choosing and sticking with a particular theme is a great way to boost excitement and pull off a seamless event. Depending on when your auction will fall in the calendar year, you may consider planning an event around a major holiday such as Christmas, Thanksgiving, or even Valentine’s Day. Another creative idea would be crafting your event theme to align with your organization’s mission. For example, if your nonprofit supports wildlife conservation, you could decorate the venue like a rainforest with related items available for bidding.
2. Encourage donations
The vast majority of funds raised through your silent auction will likely come from auction item sales. However, that doesn’t mean it has to be your only source of revenue! Consider asking for additional donations across multiple points of contact, including online if pre-registering, as well as on the day of the event. This way, you can provide an easy way for dedicated supporters to go above and beyond for your organization and bring in more funding for your mission.
3. Use auction software
The right software makes any fundraiser run smoothly. Your silent auction is no different! Effective silent auction software allows you to:
- Accept additional donations
- Provide mobile bidding options
- Streamline the checkout process
- Add photos and descriptions of items
- Send an email and/or text notifications
- Compile all your auction data in one spot
- Implement a countdown when the auction closes
Auction software comes in handy whether you’re running an entirely virtual experience, a hybrid event, or even a traditional in-person auction. Be sure to do some research and find the right auction software for your event and your cause.
4. Consider other entertainment
Sometimes a silent auction is the main event at a fundraiser, but other times it is just one of many forms of entertainment. For example, silent auctions have been known to pair well with fundraising galas, award ceremonies, concerts and shows, and more. Before you get started, it’s important to decide whether your silent auction will provide the brunt of the entertainment or whether you should look into further entertainment choices.
5. Utilize gamification
Gamification techniques have long been a powerful way to boost any fundraiser. Popular methods include fundraising thermometers, leaderboards, prizes, etc. It’s a great idea to implement such a strategy into your silent auction planning. For example, virtual auction software is designed to notify participants when they’ve been outbid and provide a countdown clock to motivate users to make their next move before they lose the item.
6. Offer “buy now” options
Bidding is a great way to drive prices up on valuable and high-demand items at your auction. However, some attendees prefer the convenience and certainty of “buy now” options. Therefore, it’s a great idea to include some items available for immediate purchase in addition to your top auction items. Be sure to set the price high enough to make a decent profit—a good practice is twice the item’s retail value.
7. Limit the number of items
You might be tempted to collect and auction off as many items as you can. After all, more items to bid on means more money, right? Not so fast. An overabundance of auction items can actually spread out bids too thinly and reduce the competition for top items that end up driving prices through the roof. Instead, select a few big-ticket auction items that will be in high demand (such as an automobile or vacation package), supplemented by some smaller and mid-sized items like gift cards, local experiences, and artwork.
Understanding the basic elements of a silent auction is the first step to pulling off a successful one. Now you’re ready to take the next steps for your organization. To learn more, check out our other informative fundraising resources below:
- Virtual Fundraising | The Guide for 2020 & Beyond: Due to COVID-19, fundraising in 2020 has been flipped upside down. Find out how to continue raising money in a pandemic with this useful guide to virtual fundraising practices.
- Matching Gift Databases | What to Look for: Millions of donors are employed by companies with corporate matching gift programs but are not educated enough about the process. If your organization has yet to take advantage of matching gifts, now is the perfect time to do so.
- Pledge Fundraising | The Complete Guide [with Tips]: What’s the difference between a traditional fundraiser and a pledge campaign? Find out this (and more!) with our ultimate guide to pledge fundraising for nonprofits.
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