By :
Tom DiNardo
Over the years I have been contacted by numerous nonprofits and charity auctioneers across the nation who request information from my company pertaining to the often asked who, what, where, when, how and why questions of charity auctions. I am asked continuously by charity auctioneers, “How should I charge my nonprofit clients for charity auctioneer services?”
Auctioneers Donating Their Time and The Challenges Presented:
Ok, I may be trampling on sacred ground now. By the way, if you feel compelled to seek benefit auctioneers who do not charge a fee, of course this is up to you. Remember, you do in fact get what you pay for. Nonprofits should clearly consider the following when utilizing a non-paid charity auctioneer: (1) Their willingness to invest a lot in the event’s physical demands and time; (2) the definite impact of increased work placed upon on your employees and volunteers if applicable; and (3) the overall impact a non-paid charity auctioneer will have on your charity auction.
A benefit auctioneer called me recently and relayed the following anecdote. “I used to do auctions for free. Now I’m doing four a month. I have no weekends off, and I still have to pay my crew. The word is out, and now everybody is calling me. I think I need to start charging.” When charity auctioneers perform auctions gratis, yes everybody will call them! Believe it or not, the non-paid, overworked, charity auctioneer is not doing the charity any favors, especially when they are finding resentment on increased demands upon their personal time with no benefit to them in return.
Honestly, most of the nonprofits organizations making these “free services” requests truly do not care that charity auctioneer has not had a weekend off in months, that you missed your child’s soccer game, or that your company went to great expense (travel, lodging, transportation, per diem, etc.) in providing free services to their charity organization. When charity auctioneers perform preside over the special event fundraiser for free it is truly the nonprofit and charity that may ultimately suffer lost income.
Charity Auctioneers Charging Percentage Fees:
I will share with you some very public feedback from major national non-profits and charities. Whereas it is completely acceptable for traditional auctioneers to charge a percentage based commission at auctions, most national charities and non-profit organizations will not accept these terms where their charity auction events are concerned. Some states (Massachusetts and Virginia) even outlaw professional fundraisers from charging a percentage based commission or fee. The same holds true for buyer’s premiums.
Buyer premiums is another can of worms! Think of a buyer’s premium as a tax imposed by the charity auctioneer. Example: A 10% buyers premium would make the total cost of a $1,000 dollar charity auction item $1,100 dollars with the additional $100 dollars (10% of the initial $1,000 dollars) being added to the total price. I know some charity auctioneers who love to espouse to their nonprofit clients the benefits of buyer’s premiums. The proponent of the buyer’s premium informs the nonprofit client, “It won’t cost you a thing, as the bidders will pay our fee….muwahahahahaaaa (macabre laugh)!” This is yet another option. However, this is a concept that was cutting edge back in the Pleistocene era, and is quickly losing favor today in the auction industry and most definitely refused by major national charities. If you like using antiquated fundraising concepts then rock-on with my blessing. Be advised, generous bidders typically feel raked over the coals, and that their generosity was taken for granted when buyers premiums are used by charities. It’s your call!
Charity Auctioneers Charging Flat Fees:
Almost from the beginning my company has charged our nonprofit clients a flat fee for a comprehensive auction services package. I had heard the unconscionable stories of benefit auctioneers who collected huge paychecks from charities because they charged percentages, and I was determined NOT to be one of those auctioneers. I was the first auctioneer in the United States to join the Association of Fundraising Professionals (AFP), and I subscribe wholeheartedly to this fine organization’s Code of Ethics for professional fundraisers. Since that time I have been outspoken advocate within the auction industry in pioneering and championing the cause of charity auction charging only a flat fee.
Consignment Items & Charity Auction Software:
I have made it a company policy that my fundraising auction firm will NOT act as a value added reseller (VAR) in accepting any financial reimbursement (monetarily, kick-backs, trade, joint marketing campaigns, sponsorships, or stipends) to promote or endorse any product or service. Be advised, the nonprofit clients are not dumb! If a charity auctioneer is strongly promoting a product or service, then the charity auction client usually knows that the benefit auctioneer is receiving something on the back end of the deal. By staying clear of these contractual obligations (indentured servitude), the charity auctioneer’s integrity is pure and untainted. For example when my company makes a recommendation or suggestion for a product or service to our nonprofit clients, then our client is assured that we are making those suggestions without undue influence. We are recommending the product or service for our clients because we truly believe it will meet the client’s individual needs.
Your nonprofit has much to gain by hiring the right charity auctioneer. This decision should not be entered into lightly. While price of charity auctioneer services may be a concern, it’s the result achieved at the end of the event that truly matter.
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