Guest Post By Alex McDonald, Director of Customer Experience at TravelPledge
If you’re like thousands of nonprofits, the 2020 coronavirus pandemic left you scrambling to cancel, postpone or stream your annual fundraising event.
Now you and your team are probably wondering, “Will event fundraising return to business as usual once we have a vaccine?”
Almost certainly not.
In this post, I make bold predictions for event fundraising in 2021 and beyond.
Prediction #1: “Hybrid Galas” Will Become the Norm
The benefits of virtual galas are undeniable. Nonprofits can engage donors who moved away, feel uncomfortable in crowds, or are unwilling to leave their homes. Moreover, nonprofits save on staff, food and venue.
Unwilling to part with these benefits, nonprofits will incorporate virtual elements into their in-person galas to form a “hybrid gala.”
For example, some supporters will attend the gala in person, while others will stream it online and use mobile bidding software to participate in the silent auction and Fund-a-Need.
As a result, the nonprofit will serve a smaller in-person audience of presumably major donors while involving all who want to participate.
Prediction #2: Live Auctions Will Take a Back Seat to Silent Auctions & Fund-a-Needs
If indeed the hybrid gala gains rapid adoption, it stands to reason that the live auction revenue will shrink as a percentage of total event proceeds. Here’s why:
An organizer of a hybrid gala will have only two options for their live auction:
Make the live auction available to in-person attendees only (and allow pre-bidding by remote attendees).
Utilize mobile bidding software during the live auction.
With Option 1, bidding won’t be as competitive since there will be fewer in-person attendees. With Option 2, organizers risk their in-person audience getting distracted on their phones, which is why many benefit auctioneers insist on bid paddles.
The Fund-a-Need, by contrast, can be executed with bid cards for in-person attendees and mobile bidding software for remote viewers. There’s no bidding, so donations can be committed in any manner at any time.
For the silent auction, mobile bidding software makes it easy for all participants to find items, read descriptions and pay. Additionally, the nonprofits will sell more items since bidding can start days before the gala.
Thus, while the live auction will likely have decreased participation, the Fund-a-Need and silent auction will likely have increased participation and revenue.
Prediction #3: “Elevated” Virtual Experiences Will Be Paramount
The most commonly envisioned form of virtual participation is someone streaming the event on their laptop and bidding on their smartphone.
Creative organizers will seek to elevate the at-home experience to increase engagement. Some examples:
Partner with a restaurant to deliver dinner to remote attendees.
Recruit “living room captains” to host people at their home to stream the event. Captains can distribute paddles and record Fund-a-Need pledges.
Show photos and tweets from remote attendees on the live stream and on the event’s big screen.
The organizers who can best engage the remote audience will enjoy the highest donor attendance, giving and retention. Further, their costs as a percentage of revenue will decrease as they move more of their audience online.
Prediction #4: Some Organizers Will Opt for Smaller, More Frequent Events
Improved fundraising technology, plus organizers and donors becoming comfortable with virtual events, will make virtual events more cost-effective and quicker to plan than ever.
Thus, while many organizers will throw a single big hybrid gala, others will throw multiple smaller events throughout the year to tailor each event to an audience segment.
For example, a nonprofit may throw a small in-person auction, then a virtual streaming event, then a virtual golf tournament (i.e., teams have a two-week period to complete their round). Donors will attend only the events that fit their lifestyle, schedule and interests.
As a result, nonprofits will engage donors in a deeper way, but at the same or lower cost as before. Moreover, event revenue from sponsors will increase because businesses can sponsor the event that best aligns with their target customers.
Alex McDonald is the Director of Customer Experience for TravelPledge, the benefit auction’s connection to generous business owners. Alex manages TravelPledge’s content strategy and customer onboarding. He is passionate about helping nonprofits exceed their auction goals.
The views and opionions expressed are those of the author and do not necessarily reflect the official policy or position of any other agency, organization, employer or company.