Second Chance Auction for Charities: Revitalize Your Fundraising

The Second Chance Auction: A Fire Sale for Fundraising 

While auctions are a great way to raise money for charity, there's no guarantee that every item will sell, and it's not uncommon to have leftover donations at the end of the night. The best way to turn these missed opportunities into potential money-makers is to offer them another time through what is called a second chance auction.

Second chance auctions aren't only a way to maximize your fundraising dollars and turn potential losses into revenue, they're also a way to maximize the bidding pool. By dropping the reserve price, or by reducing the opening bid, you can capitalize on potential donors who may have been outbid or unable to attend the first time. And should you choose a virtual or hybrid platform you can tap into a whole new audience that may not have known about your auction the first time around. 

As the saying goes "everything deserves a second chance", and auction items are no exception. This article will give you all you need to know about this type of fundraiser, including a step-by-step guide that will help you plan, promote and execute your own second chance auction so that your charity can capitalize on every donation and donor available. 

Understanding the Second Chance Auction 

While traditional live and silent auctions are mainstays in the fundraising world, second chance auctions are an innovative and, perhaps, overlooked strategy. However, with online fundraising becoming an increasingly popular option, second chance auctions are a great way to raise money by holding a virtual or hybrid "event after the event".

While the concept remains the same, with attendees bidding on items that have been donated towards a charity's cause, there are some significant differences between traditional and second chance auctions:

• Audience: Traditional auctions are usually focused on in-person participants who are present at the time of the main event. Second chance auctions usually open up to a greater number of bidders, including those who missed the first event and those who are attending virtually.  
• Item Selection: In a traditional auction a wide selection of items are available for bidding, including luxury and high-ticket items, as well as "experiences", and packages. Second chance auctions normally involve a smaller selection, including items that did not sell in the initial auction, with some new items being introduced to peak interest.
• Format: Traditional auctions are most often live events where offers are processed through an auctioneer or through silent bidding; second chance auctions tend to be more versatile and can be held in different formats, including virtually, live, or in a hybrid combination.
• Outcome Goals: With a traditional auction, the goal is to maximize donations in one single event, while the goal of a second chance is to salvage any losses and not let any donation go to waste, which can allow the auction to carry on for several days.

To give an example of how second chance auctions work, let's say an auction featured, among other items, a weekend getaway. However, the bids just didn't come in or the reserve price wasn't met. Including this high-ticket item with other unclaimed items and reducing the starting or reserve price opens up the opportunity to bid to those who weren't in attendance the first time, or who simply couldn't afford to throw their hat in the ring. The item sells, the buyer is happy they got a bargain, and the charity receives the funds that may have been missed out on otherwise.

The Power of Second Chance Auctions for Charities 

Second chance auctions hold a lot of potential for nonprofits, both financially and logistically. First and foremost, they are a cost-efficient way to fundraise, as the majority of the legwork was already done the first time around and the need to rent, decorate and staff a live venue can easily be eliminated by taking the auction online.

Second chance auctions also serve as a way to deepen donor engagement. As mentioned before, second chance auctions tap into an audience that perhaps was unable to attend or maybe felt out-priced the first time. It could also be the case that the event is the first time auction participants have been involved with your charity. A second chance auction offers organizers a chance to build on momentum, and strengthen preexisting donor relations, while building new ones. Having a follow-up event keeps the buzz going, and helps donors build a relationship with your charity, particularly if they've already developed a personal connection to your cause. 

How to Organize a Second Chance Auction 

Setting the Stage for Second Chance Success

When it comes to planning the auction, like with all fundraisers, it's best to have a clear and organized plan in place. First, set a date and decide how you would like the auction to proceed. Will it be held virtually or using more of a hybrid platform, entertaining both online and in-person bids? Once you have your chosen date and format, it's time to get started. Here's a guide to help you through the process:

• Review the catalog: Familiarize yourself with the items remaining from your previous auction. If they are material items, make sure they are in good condition. If they are experiences, destination prizes or gift certificates, make sure they are still valid and be conscious of any black-out dates or restrictions that may be involved.
• Refresh your offering: Review each item to ensure that they are presented in the most appealing way possible. Adjust pricing strategies, and, if need be, take new photos and write new buzz-worthy descriptions. Look at each item with a fresh eye. If possible, look for some new prizes in order to "freshen up" the offering, which can bring in new potential donors and invigorate attendees from the last fundraiser.
• Set Guidelines: Clearly communicate with potential donors the start and end times of the event. If any of your items have a reserve price or are "Buy Now" items, be sure to provide that information as well as to avoid any confusion during your auction. 
• Be Transparent: Be sure to let donors know what the payment deadlines are and any rules there may be about bid removal while presenting attendees with information regarding item collection and what delivery options are available.

Running the Auction: Tech Driven Strategies

Should you opt for a virtual auction, you're opening your fundraiser to a much larger and more diverse crowd. While this may seem overwhelming at first, using an online bidding platform like Paybee can make the process a lot easier. But why enlist the assistance of a virtual fundraising platform? Let's have a look at some of the key reasons to consider using the services of an online auction platform:

• Save yourself time and stress: Online auction platforms save you time and stress by sending out automated notifications to interested bidders, including start/end times, new additions to the catalog, as well as "payment due" reminders to the winners. 
• Increased bidder engagement: Having an auction platform run your second chance auction means that participants will also receive instant notification when they have been outbid, meaning they can get back online and up their bid within minutes. 
• Easy Payment Processing: When it comes time for successful bidders to pay up, virtual auction platforms do all the work for you. Legitimate platforms accept various payment options and have integrated and secure payment systems that get donations into your charity's bank account with the push of a button. 
• Reports and Analytics: After your event has ended, it's important to not only have detailed revenue reports on how financially successful your auction was, but also to have reports on participant demographics. This could include information regarding who your top and repeat donors are and if there were any bidding patterns, including particular items or categories of items that grabbed more attention and results than others. Knowing what worked and what didn't is the key to success in the future should another auction be held. 

And, while there are dozens of online bidding platforms out there, it's important to find one that fits your needs. Some virtual auction websites cater to smaller charities and nonprofits operating on modest budgets, while others work best for large fundraising initiatives that are higher budget and more complex. Take into account the scale of your event, the budget you're working with and what kind of features you're interested in, such as live-streaming or mobile bidding.

Finding the right match for your second chance auction can make all the difference in achieving your fundraising goals. If you would like to use an online auction platform for your next event or are simply looking for more information, feel free to contact the fundraising experts here at Paybee; we would be happy to help.

Should you choose to DIY and go online, make sure that your technology is up and running correctly and glitch-free. If you're not particularly tech-savvy, enlist a volunteer who can troubleshoot and who knows the ins and outs of live-streaming to make sure your fundraiser rolls out smoothly. Be sure to do test runs beforehand and ensure that the catalog has been preloaded with all the correct imagery, text and starting bids. It's also helpful to include countdown banners and live updates, which can add to the excitement by creating a sense of urgency and, in return, increase bidder competition. 

Spreading the Word: Effective Auction Promotion

When it comes to effectively promoting and marketing your second chance auction, it's important to have a well-rounded strategy. Your goal should be to increase participation over your last auction by re-engaging previous attendees and bringing in new ones. As with most fundraisers, the best way to accomplish this is by using a combination of social media marketing, email campaigns and partnerships with local businesses. Here are a few tips:

• Social media has become one of the most powerful marketing tools out there. By creating visual content, and including relevant hashtags, it's possible to tap into audiences that wouldn't know about your fundraiser otherwise. Use your charity's social media accounts to create "events" that include all the relevant details and share the link with friends, family and charity supporters.
• Including reels and previews can act as teasers, but in order to create a real buzz and get people talking, don't release photos of all your auction items at once; instead, release one photo at a time, gradually ramping it up as your auction date draws near. This is an effective way to draw people's attention to your fundraiser, getting them to check your pages, and converting them into potential bidders. 
• While email campaigns may not have the same range as social media marketing, they're still a valuable and effective way to promote an event. By messaging the people on your email list you're reaching out to those who have already supported or shown interest in your charity in the past. Sending a personalized invitation, as well as updates as the auction draws near, is an effective way to keep supporters engaged and feeling appreciated.
• Don't forget to include the time-tested marketing strategy of partnering with local businesses. Inviting businesses to donate auction items in return for promotion for their company is a win-win situation. Your auction receives some new items to freshen up the auction catalog, and the business receives some free publicity. Create an eye-catching flyer promoting your event which includes the names of business sponsors and ask if they can display your poster within their establishment. Not only does partnering with local businesses expand your potential donor base, it also helps foster a sense of community and mutual support.

Conclusion: Second Chances, Lasting Results

In conclusion, second chance auctions offer a creative, efficient way of taking missed opportunities and turning them into financial successes for your charity. By refreshing and reviewing your auction catalog, lowering the starting bids and/or reserves, and using effective marketing and promotion strategies, your charity can breathe new life into your items, as well as your event.

By taking your auction online through either a virtual or hybrid model, you also open your auction to a whole new pool of participants who are ready and willing to bid. Should you choose to take your auction online, finding the right bidding platform can make all the difference. Not only do they manage the online bidding process and help process payments, but they also offer post-event reporting, allowing your charity to review its financial success and help you identify areas where improvements can be made, should you wish to organize another auction in the future. 

While the saying may be "third time is a charm," with successful planning and promotion strategies as well as a refreshed catalog, lower price points and new, additional items, a second chance can be all you need to reach your auction fundraising goals. So, dust off those auction items, get them relisted and turn those missed opportunities into financial success!

FAQ's 

• What are the best types of items to include in a second chance auction?

When it comes to selecting items for a second chance auction, naturally, you're going to have a look at what remains from the first auction. First, focus on items that drew a lot of attention during the initial auction but perhaps didn't make reserve. Typically, these are high-value items like vacation packages, designer goods or meals at local high-end restaurants. However, your second chance auction shouldn't cater solely to big-ticket items. Be sure to include a variety of items that can hit every price point so that everyone can get involved. Gift certificates, electronics and professional services like photography sessions or private classes are just a few examples of items that have broad appeal and are sure to get your bidders excited. 

• Can second chance auctions be conducted entirely online?

Second chance auctions can definitely be held entirely online. In fact, making your auction virtual offers multiple benefits. They're cost-efficient as there is no need to have a physical venue, decorations, or staff, and they're easy to execute as most of the items have already been organized and put in a catalog. Online auctions also provide the opportunity to significantly increase the donor base by opening up bidding to basically anyone with a smartphone or laptop. Opting to use an online auction platform can also make the whole process seamless by managing online bids, processing payments and providing post-event reports.

• What are the main differences between second chance auctions and traditional auctions?

While second chance auctions and traditional auctions have a lot in common, there's also a lot that sets them apart, particularly the format, item selection and audience. Second chance auctions are an opportunity to capitalize on items that did not sell the first time through, and are usually offered with lowered starting bids or with "Buy Now" options. These types of auctions are also often held via virtual or hybrid platforms and can last several days, as opposed to a traditional live auction, allowing for a significant number of new potential donors to get involved.

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