While there are many “key components” to a benefit auction the one that is often forgotten is the payment for the benefit auctioneer and fundraiser auction consultation services. There are several options to considering regarding the payment:
No Charge To The Nonprofit Organization Plan
Most nonprofit organizations favor the buyer’s premium option. Your organization spends nothing for the costs of the charity auctioneer and consultation services. The buyer’s premium is paid through the winning bidders. This effectively funds the charity auctioneer and auction consulting services. This way your nonprofit organization keeps one hundred percent of the money earned!
Flat Fee & Incentive Plan
Another option is a flat fee plus an incentive. Larger nonprofits or established annual charity auctions may have an amount set aside in their budget to cover the cost of the benefit auctioneer and consultation services. Sometimes there are specific donors that are willing to sponsor your fundraising auction and cover the cost of the charity auctioneer and consultation services. The incentives beyond the flat fee help to motivate the charity auctioneer to maximize the revenues received at your fundraising auction.
Portion Of The Earnings Plan
Many nonprofits prefer to pay their charity auction fees through the profit made from the actual charity event. In this circumstance, a percentage of the benefit auction proceeds will go to cover the cost of the charity auctioneer and auction consulting services.