How To Run An Online Silent Auction [Nonprofit’s Guide]

Hosting an online silent auction has many advantages for nonprofits. It helps nonprofits reach a wider audience and is also more convenient and flexible compared to in-person auctions.

With proper planning and research, it is possible to execute a successful online auction. Given below is a complete guide for nonprofits.  

Planning And Preparation

You cannot hold a virtual auction without making any prior preparations. Hosting an auction requires time and effort along with strategic planning.

Your nonprofit should hold a meeting and have discussions about,

• All the essential things required for the online silent auction.
• The people who are going to be in charge of the auction.
• The funds necessary for running the auction.
• Methods to spread the word about the auction to donors and other people.
• Arrangements for delivery of auction prizes to the winners.

After considering all the above things, a strategic plan should be formulated.

Assign People For Different Auction Related Tasks

It is not possible for a single person to be responsible for running the entire auction. Divide the members of your nonprofit into groups and assign each group with a different task.

The different tasks will include,

• Coming up with a marketing plan for the auction.
• Preparation of auction items along with taking photos of them.
• Selecting an appropriate virtual auction software.
• Arranging a virtual event along with the auction.

Prepare Guidelines And Rules For Your Auction

Guidelines and rules are important to ensure the smooth running of your auction along with educating the donors about how they should approach the auction.

These guidelines will also ensure the proper execution of the auction and let people know about your nonprofit’s goals and objectives.

Organize And Price The Auction Items

After collecting all the items you need for the auction, pricing them will be your next step. 

• Make sure you have a proper estimate of the FMV (Fair Market Value) of an item. An accurate value will help you calculate the starting bid and bid increments properly. Doing thorough research might be necessary in case of intangible items.
• Get feedback from previous auction holders, fellow fundraisers and other people who have expertise in the pricing area.
• The starting bid should depend on factors like audience demographics, value of the item, story behind the item and other relevant factors.
• The minimum bid should be always 30-50% of the item’s FMV. You can set a higher bid for more valuable or popular items which are in high demand.

Choose A Good Online Auction Software

A good online auction software is necessary for the smooth running of your virtual silent auction.

• The software should be easy to use and navigate. It should adapt to every device so that it can accommodate all your donor’s needs. Be digitally conscious while selecting a software.
• It is very important to take data security into consideration while choosing an auction software. Your platform will benefit from cloud computing services like AWS, Microsoft and Google because they are highly secure.
• Do thorough research on the ratings and reviews of the software. Make sure they have a good reputation with previous auction holders.

Create A Marketing Plan For Your Online Auction

A good and strategic marketing plan will help boost donor participation and spread the word about your  online silent auction.

• Promote your auction through all your social media platforms and encourage your donors to share the news with all their followers.
• Encourage donors to register early by giving them pre-bidding options.
• Prepare press releases about your auction and use other traditional methods like reaching out to local radio stations.

Combine A Virtual Event With Your Auction

Combining a virtual event with your auction will provide you with opportunities to make donation appeals, amp up the bidding excitement, show off unique items and incorporate other entertaining elements. Don’t forget to close off by thanking your donors for their participation and explaining how they are going to receive their prizes. 

Conclusion

Nonprofits can spice up their virtual silent auctions with raffle tickets, fundraising challenges and livestreams. Come up with innovative ways to get your donors excited and don’t forget to thank and appreciate them at the end of the auction.