- December 12, 2021
- Posted by: Robert Brown
- Category: Investing
Setting a net revenue goal for your benefit auction is one of the most important elements of planning your fundraiser. It is necessary for your nonprofit staff and volunteers to have a target to shoot for when creating the charity event. But estimating how much fundraising money could be raised at your silent auction and live auction can seem difficult, especially if this is your first charity auction event.
While an exact dollar amount is impossible to calculate, the best way to estimate the revenue is to multiply the number of guests expected at your benefit auction by the amount that each could be anticipated to spend. Guests, who are present at an event where the benefit auction is not the main purpose of attending, are likely to spend less than guests who are only at an event for the fundraising auction. If the charity auction is selling corporate tables or tickets at higher prices, you can expect each guest to spend even more. If your nonprofit organization offers ticket prices that are low, the average spent by each guest decreases.
When a nonprofit organization believes that their goal is to “make as much money as possible”, they have not completed the basic planning stages of a successful charity auction. Not having a specific goal for your fundraising event is like throwing darts at the target blindfolded. If no goal is decided on in the planning of the charity event, there is no way to evaluate the benefit auction after it is over. If there was a clear budget and a definite goal decided on before the fundraising event, then we can review the actual revenue and expenses afterward and decide if the event was successful or if changes need to be made for the next fundraising auction.