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We first experimented with an fundraising auction in late 1998 on behalf of a small, community-based organization in Northeastern Connecticut. We were offered the opportunity to test the online auction platform by a local technology company at no cost to us. By the end of the auction we had raised roughly $10,000 that went into community programs.

We would like to share with you what we learned from that experience and how our planning was done to insure success.

In-house "expert"
You should designate one or two persons to be the contact point between your organization and the company providing the auction services. These persons will be the "in-house" experts and  should be able to explain how the online auction works and what bidders have to do to place a bid. They should also be familiar with the auction schedule, know what items are being auctioned at a particular day or week, and what items are still on-hold and not being auctioned yet.

Online Auction start and end date
We set a start date and planned "walking backwards". That is, we identified what we had to do and in what time frame in order to be able to start the online auction on the selected date. There was also testing taking place by the technology company to make sure there were instructions so the user was able to find the interface easy to place a bid. There were also security issues to address such privacy, credit card security, etc. These days the online auction are very advanced and the security of placing orders or bids over the Internet is rarely an issue. You should have any item online being auctioned for at least 2 - 3 weeks.

Online auction end date
We figured that 30 days was an appropriate time to run our auction. You might be interested in running your fundraising auction for a longer period of time depending on the number of items to be auctioned. One important point to remember is that many people do not want to use their credit card over the Internet, so you should provide a telephone number to call for questions and place bids. The telephone number should be in all pages - Don't make people search for it.

Set your goals
Besides setting the profit goal you would like to achieve, you must remember that when it comes to online fundraising auctions, you want the auction to be available online to members of your community and persons outside the community - the Internet is great for this, it is global. Keep this in mind when requesting donated items and/or services to be auctioned.

Donations - where do they come form
You need to identify the prospective donors you will approach and place them in categories. Remember, these companies have a  marketing budget as well as a Community Relations Budget, and if approached the right way, they will contribute to your fundraising effort. These are few examples of sources we identified and were able to secure a donation from:

•  Banks
we requested and received two (2) savings bonds from the banks we approached for donations. Make sure you send the letter to the branch manager. Since your organization does have a business checking account and in many cases more than one, in different banks, you should be able to request and receive something similar.

•  Retails Stores
We approached several stores and requested a variety of donations. The donations came in the form of "$25.00 certificates" to purchase groceries, electronic equipment such as printers, software, etc. The variety of donated products and services you receive will allow you to a wider variety of merchandise and services to be auctioned. Most major retail stores, i.e. Walmart, are locally managed, you need to send your request to the store manager and not their headquarters. Major restaurant chains also have store managers and owners (if it is a franchise), so you need to approach the local level first.

•  Hospitality industry
We requested and received "Free night stay" certificates from Foxwoods Resort & Casino and Mohegan Sun Resort and Casino here in Connecticut. This allowed us to reach out to people in Massachusetts, New York and New Jersey to name a few states.

•  Amusement Parks, Museums, Aquariums, etc.
We requested and received free entrance certificates to several amusement parks, museums and the Mystic Aquarium.

•  Artists
We approached a local artist who donated three of his paintings to be placed in the auction. These paintings brought good profit to the fundraising effort.

The options of donors you can approach are endless - auto service stores, beauty salons, bookstores, movie rentals, photography studios, etc., etc. As an example, if you contact Blockbuster and ask for a $25.00 Blockbuster Gift Card, people outside your community might be interested in bidding on it because the item can be used at any Blockbuster store across the United States.

The Letter
Writing a letters to prospective donors is not too much different that requesting money for your organization.

Introduce your organization and the services you provide to the particular community. In the second paragraph state the reason for contacting them - "having an online fundraising auction over the Internet to raise funds for your organization and its program." The auction will start on (date) and will end on (date) and will be available over the Internet to residents of (your location) and people across the USA. Please note that a local merchant probably is not too interested in "people across the USA" since more than likely they will never visit their store - they will be more interested in paragraph 3..

In paragraph 3 you are going to cover the marketing campaign for your auction. How you are going to make sure the news of your upcoming auction is covered (press releases, local public television channels, have local newspaper come and do a story) and how you are going utilize the internet as a way to attract visitors for the auction. We are amazed of how many organizations have signed up for a fundraising auction through us, but never asked us to help them with publicity. If you sign up for a fundraising auction through us, the least we can do it to help you get the word out to our visitors. Many prospective donors might be interested in the publicity and exposure the auction can provide for their company.

You should also remind the prospective sponsor that all donations are tax deductible and that your organization will provide a letter acknowledging the donation and its value.

Let the sponsor know that each product/service donated will have its own page with a description of the product/service. The name of the donor should appear on top of the page (with a link to their store) underneath the name of the product/service being auctioned off. It is even more effective is you include a logo of the donor's company and link to their web site embedded (a link).

Press Releases
Make sure to include the URL (Internet address) of the online auction in all your press releases, letter to the local public television channels, etc. You want people to know where they have to go to participate. Also remember that must local public television stations require "lead time" to plan their schedule and air your announcement - find out what the lead time is and plan accordingly.

Rate Chart
You should have a chart for a merchant might not be interested in donating a product, but who expresses an interest in having their company logo appear on the pages of your auction. So you need to develop a rate chart on how much it will cost to have a logo on the pages. Usually the price depends on size - you do not want an image greater than 125x125 on your pages.

"Thank You" Letters
Once the auction has concluded, you should mail "Thank You" letters to all donors who provided goods or services. You can let them know, if you so desire, the total amount of monies raised and that it would not have been possible without their generosity and participation.

The above information are the basics to implementing a fundraising auction for your organization over the Internet. To save you time and effort we highly recommend cMarket for your fundraising auction - they have all the tools needed to ensure your fundraising success.

Please feel free to send us your questions.

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