Earlier this year Seth Godin, a marketing guru and bestselling marketing author, posted a blog entitled “Marketing the Charity Auction“. In summary, Seth delicately (but sternly) tells all the charity bargain hunters to go home.
This bargain hunting is fine as far as it goes, but it never leads to a wildly successful auction, because the story that’s told is too small.
If you’re only willing to bid $19 to buy a $20 bill at this auction, you’re not doing charity, you’re bargain hunting. There’s nothing wrong with bargain hunting, it’s fun, but it’s not philanthropy. I think bargain hunting for a good cause is just fine, but wouldn’t it be great if the event could raise far more money and change the way people view the organization?
The Robin Hood Foundation raised more than 24 million dollars at their last auction, because people competed to overpay. And that’s the secret. The story the charity must tell is: “don’t pay $19 for this twenty dollar bill, don’t even pay $30, we need you to pay $40!” The satisfaction of overpaying (whether you overpay anonymously or in public) is what they sell, not a bargain.
Applause. Applause. Seth is right on. The goal of fund raising events are just that — to raise money — so they need to be designed and executed as such. The responsibility falls on both the nonprofit as well as the attendees. So the next time you are attending an event think “I’ll pay $40 for that $20 bill and be proud of it.”