How Important Is the Fundraising Auctioneer to the Success of Your Event?

I want you to think about the term “Fundraising Auction”.

A “Fundraising Auction” is an event where items of value are gathered, and then sold in a competitive bidding situation, either in a Silent Auction format, or in a Live Auction format by a Live Auctioneer. And since typically the best items are saved for the Live Auction, arguably it is the Live Auction that should generate a significant portion of the proceeds in any Fundraising Auction.

So why do so many non-profit groups consider the Fundraising Auctioneer to be the least valuable component in a Fundraising Auction?

The Hosting Facility gets paid.
The Printer gets paid.
The Caterer gets paid.
The Liquor Store gets paid.
The DJ gets paid.
The Florist gets paid.
But the Auctioneer … the individual who is expected to raise the lion’s share of the event’s proceeds… is expected to work for Free. And is usually under-appreciated for the professional services he/she provides.

I’m not trying to underscore the value of the invitations & programs, food, booze, music, and decorations. All are important in their own way. But each of these are “Expenses”. It is the Auctioneer who is going to bring “Revenue”… and thus, the “Profits”… into any event. Which is the ultimate objective of any Fundraising Auction.

Here is a real-life example of how under-appreciated the Auctioneer can be. In two comparable events we worked last year, during the dinner portion of the event one non-profit group sat the Auctioneer (me) at a table with the DJ, the Interns, the Volunteer Staff, and other event “Help”. The 2nd non-profit group sat the Auctioneer (me) directly next to the CEO of their organization, where we chatted about how important the pending revenue would be to their organization. Which group do you think valued the services of the Fundraising Auctioneer more?

Don’t ever under-estimate the value that a professional Fundraising Auctioneer can bring to your event. The Auctioneer adds value as a pre-event consultant. And the Auctioneer can change an event from a moderate to a huge success.

A Case Study Once I was scheduled to call an Auction for a major local non-profit group. They represented a very good cause and they had a strong and dedicated following. Their event was sold out, quality Live & Silent Auction items had been solicited, and the Special Pledge Appeal had been choreographed and was ready to go. The facility was first class, the appropriate caterer was booked, and the food was ready to cook.

But quite unexpectedly, some unseasonably inclement weather forced the event’s cancellation. Despite all of the committee’s hard work, cancelling the event was the proper decision considering the circumstances.

So the Event Committee scrambled to re-schedule the event for the following weekend.

They confirmed with the Hosting Facility.
They confirmed with the Caterer.
They confirmed with the Liquor Store.
They confirmed with the DJ.
They confirmed with the Florist.
Since they already had the Mailing List of those scheduled to attend, no new invitations had to be printed as all were contacted by email or telephone. So with everything in place, the group went ahead and re-scheduled the event for the following weekend.

But guess who they failed to confirm? You got it… the Professional Auctioneer. They thought so little of the Auctioneer’s contribution that they “assumed” that the Auctioneer would be available and at their beck and call.

But the Auctioneer already had another Fundraising Auction booked for that date with another non-profit group. It was only hour away from the re-scheduled event, and things could have been easily worked out. All Group #1 had to do was start their event one hour earlier, or one hour later, than the Group #2, and the Auctioneer could have helped both groups on the same day.

But because Group #1 failed to anticipate a possible Auctioneer conflict, because they failed to confirm with the Auctioneer before re-scheduling their event, their preferred Auctioneer had to bow out and they had to scramble to locate substitute “Volunteer” Auctioneer only days before their event.

And it cost them.

Learning Points

The Live Auction is usually where the profits are made at any Fundraising Auction.
A Professional Fundraising Auctioneer can be vital to the success of any Fundraising Auction.
The better Fundraising Auctioneers usually get booked quickly.
You need to recognize the important contributions that a good Auctioneer can make to your event.
Michael Ivankovich is a Bucks County Fundraising Auctioneer based in Doylestown PA, and serves the Great Philadelphia PA area. He has been a professionally licensed and bonded Auctioneer in Pennsylvania for nearly 20 years, has been named Pennsylvania’s Auctioneer of the Year, and has considerable experience in conducting Fundraising Auctions. Michael loves helping groups raise needed funds for good causes and one of his specialties is the “Special Pledge Appeal” or “Fund-A-Cause Appeal” which usually enables clients to double their revenue in a single evening.

Home Based Business Tax Benefits: The Top 5

Did you know owning a home based business has considerable tax benefits? The idea that only the rich have access to tax benefits is a myth!

The first step is to own a home based business and run it with the intention to make a profit. The important word there is “intention”. You don’t really have to make a profit to take advantage of these benefits. Now, you can begin a home based business for little cost and can run it part-time from your home while having a full-time job.

In time, and with some effort on your part, you will be able to leave your day job and work from your home full-time and take advantage of all of the benefits a home based business has. The best part is you can take advantage of the home based business tax benefits as soon as you start your new business!

Owning a home based business allows you to deduct some personal expenses you wouldn’t usually be able to deduct. These things include but are not limited to: dining out, a new computer for the office, dental and medical expenses, and some vacation related expenses. The money you can deduct for operating a home based business is not insignificant and can amount to well over ten thousand dollars.

Here are the top five deductible expenses for Home Based Businesses:

1. Vehicle Deduction

This IS the most complicated home based business tax benefit you get. It is also where most people get into trouble with the IRS because they didn’t correctly document their vehicle related deductions. If you are going to use vehicle deductions, I can not stress enough that you MUST document everything properly. Keeping a diary or travel log to track mileage, maintenance costs, etc. will save you time and many headaches.

How does the vehicle deduction work? Basically, you determine how much of the time you use your vehicle for your home based business as a percentage. You are then permitted to take that percentage of time and apply to the cost of operating your vehicle. For instance, if you use your vehicle 60 percent of the time for your home based business, you are permitted to deduct 60 percent of the costs of operating the vehicle.

2. Meals and Entertainment Deduction

First things first, in order to take advantage of this tax benefit, you must have proper documentation. This primarily means you need to save your receipts and record who you spoke to about your home business. Normally, you will be able to deduct up to 50 percent of the cost, but make sure you check beforehand.

As long as it is related to your home based business and document the costs properly, you can also deduct up to 100 percent of the expenses of entertaining people in your home. You may come to realize the tax benefits are much greater if you entertain in your home instead of taking someone to your favorite restaurant.

3. Home Office Deduction

This one of the more intricate home based business tax benefits, but it has the potential to save you thousands of dollars every year you own your business.

To claim the home office deduction:

1. You must render significant administrative or management activities for your business out of your home. For example, you do your paperwork, make calls, do your training, and perform other business functions out of a set area in your home.
2. You have no other office where you conduct significant management or administrative activities for your business.
3. You must use a specific part of your home exclusively for business. It doesn’t need to be an entire room though. A particular section will do.
4. You must use this designated section regularly for at least 45 minutes a day, four or more days a week. The work hours must not be occasional or sudden.

What can you deduct? You are permitted to deduct part of your home, utilities, and part of the interest and taxes you pay that are related to owning your home. You can also deduct office supplies like new computers, printers, phones and furniture used for your home business.

4. Travel Deduction

Did you know the Internal Revenue Code (Section 162) allows you to deduct “traveling expenses…while away from home in pursuit of a trade or business…”? As the owner of a home based business, you can visit family and friends all over the world and deduct some of the expenses associated with the trip. You just have to make sure at least half of the days of your trip are “business days”. Essentially, as long as you plan ahead and document properly, you can deduct a lot of the costs associated with traveling and vacationing… Every year. How is that for a home based business tax benefit?

5. Medical Expenses Deduction

In order to take advantage of this home based business tax benefit and, you will need to employ your spouse and cover them with a comprehensive family medical plan. This allows you to deduct all of the costs associated with the your family’s medical expenses. But, there two important requirements in order to take advantage of this deduction.

The first is you must have proof your spouse has done actual work for your home based business. The second is you must establish a legal document called a “Self Insured Medical Reimbursement Plan.” Do a search on that phrase in Google to see what that entails. It’s pretty straight forward.

Things That a New Small Business Owner Must Expect

Many people dream about starting their own business, but very few are actually able to live their dreams by executing them, and even fewer make it past the first five years. This is mainly because a large number of times, some business owner don’t really know what to expect.There are no words to describe what it feels like but in simple terms; it’s fun but scary at the same time. A large number of small businesses fail because of an inability to successfully make it past year one.Many business gurus believe that with the right knowledge of what to expect, a new small business owner will know how to prepare for upcoming challenges. Here are a few things that any new small business owner should expect.Be Ready to Hustle When You’re TiredIsn’t that what being a small business owner is about? You may be thinking that as a small business owner, you can take a day off when you feel like it but that’s not the case. As the brains behind the entire operation, you need to hustle even when you feel like you’ve done enough. That’s the difference between being an employee and a business owner; you’ve never done enough.There will always be paperwork that you need to sign, orders that you need to make and customers whom you need to talk to, especially in the first year. Just like in every other phase of life or an industry, the initial period is always make-or-break, and the end result highly depends upon how much work you put in.You can spend each second checking and rechecking your plans and improving them, working on ideas and developing new strategies. After all, there’s so much on your plate (marketing, product development, vendor contracts and employee training)You Can’t Make Every Customer HappyIt’s true that as a business owner, you need to retain a sense of balance in everything you do but when it comes to satisfaction, you can’t make everyone happy. As a small business owner, you’re bound to make quite a few customers unhappy and the truth is, you don’t really need to make everyone happy, either.It’s important that you remember that the key is to have a consistent customer service policy and handling complaints carefully. If your product doesn’t impress a customer all that much, then the way you handle a complaint is sure to make them a loyal customer.A major factor that differentiates your small business from that of a larger conglomerate’s is that you, as the owner, can give customers the attention they want, which is why they are likely to approach your brand in the first place.Be the Master of All TradesWhen you first thought of starting a business, you may have guessed that you’d only have to sign things and the wheels of your business would turn themselves. Wrong. In year one, you should expect to be able to do everything and know how every process works.Along the way, you’ll think ‘they didn’t teach me this at business school’ as you try to find a good web hosting company for your company website or take aesthetic pictures of your products so you can post them on a social media account. You don’t learn everything about starting a business; you have to experience it hands-on.From managing office operations during the day to writing content for your website at night, you’ll have to do most of it in the first year. You’ll be lucky to have friends or family who’ll be willing to help around but in year one, you can’t afford to hire many employees. In addition, even when you do get people on-board, you’ll have to know how to do things yourself before teaching them the basics.Be Familiar with LawsNo this is where it gets interesting. Staring a small business will require you to be familiar with laws about hiring and taxes so that your business will genuinely be able to help people in the community by offering employment.There are a number of regulations, laws, and licenses you need to know about before you can officially carry out operations as a business. In the beginning, you should expect to hire a lawyer for such needs because it’s impossible for you to know all the complex regulations that surround the startup of a small business.This is crucial because no matter how hard you work on your business, it’s likely that even a small detail or legality can be held against you. You’ll be doing yourself a favor by investing in proper legal advice and obtaining all the licenses you require. Nevertheless, legal counsel isn’t cheap so you should expect to have enough financial resources.There Will Be Some Bumps along the RoadFailure, no matter how big or small, is an inevitable part of running any business, whether big or small. You could make a product that doesn’t turn out as successful as you thought, your marketing strategy may backfire or worst-case scenario, you get a wave of negative feedback.The first year won’t be failure-free but that doesn’t lessen your chances of reaching success. To keep yourself prepared for these situations, business experts advise that before you should quit your job, you need to have some savings. To be more specific, you should have enough money to support yourself for a year.You need enough savings because no matter how well you plan the first year of your business, you can’t predict the future so there is always a chance that you might fail. There’s nothing wrong in preparing yourself for the worst-case scenario while planning for the best.ConclusionThese are just some of the things that every small business owner must expect, especially during the first year after launching their business. Of course, no amount of expectation and preparedness can actually make you battle-ready to start a business but knowing a few of the most common symptoms will help you diagnose and reassure yourself that this is supposed to happen.


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