A online auction or a virtual auction is a sale of items on a “Web auction platform” accessible via the Internet using a cell phone, computer, tablet, or any other device connected to the Internet. To acquire a lot, participants must bid for it. The person with the highest bid at the close of the auction wins the item.
On the interactive auction platform, items are listed with a description and an image for a specified period. A starting price is set by the auction organizer, along with a minimum bid amount called the increment. The value is often mentioned to guide bids.
The electronic auction now replaces the traditional silent auction. For these old fashion auctions, participants had to move in front of the item to write their name on a sheet of paper. And, they had to return regularly to monitor their bids and enter their names to bid again if necessary.
Whether at an online auction in Montreal or elsewhere in Quebec, the interactive auction now gives participants the opportunity to bid from wherever they happen to be.
Bidders will be notified in real time if their bet is exceeded, and a text message (SMS) will invite them to bet again. It's easy to see that participation increases, as does the number of bids. This sequence of interactive bets will have repercussions on the monetary increase of the items auctioned. In the end, the amounts will be higher, and the auction will be better able to achieve its fundraising objectives.
Typically, auctions run online for specific periods ranging from a week to a month, or even longer. When the event ends, winning bidders pay online and receive their items afterwards.
Why should NPOs hold an online auction?
There are many reasons to hold online auctions in Canada.
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Raise funds for the organization.
- One of the main reasons for launching a virtual auction is to raise funds for their organization or foundation. The auction is an extraordinary tool. Normally, the items are all sponsorships offered by a variety of companies who want to get involved socially and support the cause. The monetary benefits are significant.
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Increase the Foundation's social visibility.
- All charities benefit from making themselves known and exposing their mission to as many people as possible. When a foundation launches its auction, it can send out a newsletter to its supporters and announce it on social media like LinkedIn and Facebook. These publications will help build and increase their community.
- People who participate in a Foundation auction will help the mission by bidding at their auction and may discover a new organization and cause close to their hearts. These auctions are a great way to encourage new donors to get involved with the organization.
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Promote a fundraising event
- As a general rule, an online auction that ends with an event, such as a gala evening, dinner, cocktail reception or golf tournament, is launched several days and up to 3 weeks before the event and its conclusion. The Foundation will have promoted the auction and the event at the launch. It's even possible to create header banners for the auction using the evening's event signature and add an item that leads directly to the ticket purchase. The auction will promote and add visibility to the event. Within the online auction platform, there are various ways to inform and remind people of the organization's event, with email and SMS reminders.
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Animate and rally participants to the cause during the event
- It's an additional happening during the evening. At the event, many participants have already had a chance to see the items and start their bidding. The host will promote them and explain some of the featured prizes. There's even a real-time on-screen display of the prizes, the leaders and live tracking.
- Items are displayed so that attendees can stroll through the auction area during the cocktail party and be seduced by a few items. Physical lots, such as works of art, are often different from the image on the auction platform.
- When the auction ends on that evening, the bids and amounts raised will be higher thanks to the emotion and atmosphere of the evening. There are often touching testimonials demonstrating achievements in line with the Foundation's mission. Participants who are touched and made aware will bid more. The host can create an existing auction ending with the visual support of displaying the countdown to the remaining auction time on the screen and on participants' cell phones.
- It's an additional happening during the evening. At the event, many participants have already had a chance to see the items and start their bidding. The host will promote them and explain some of the featured prizes. There's even a real-time on-screen display of the prizes, the leaders and live tracking.
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Collect donations
- The web auction platform is also an excellent tool for raising donations. If participants or guests do not wish to bid on auction lots, they can make a donation.
- For an NPO, there are several ways to raise donations with the auction platform.
- There are direct and spontaneous donations, cumulative donations for a common project and concrete donations.
- With concrete donations, the organization demonstrates the type of services it offers its beneficiaries, along with the amount associated with that service. It's a great way to increase revenue while demonstrating the Foundation's mission.
- Participants will be more inclined to give if they know what their $120 donation will be used for, as an example.
Conclusion
Interactive auctions are modern, rallying tools that offer the opportunity to raise funds over a set period of time. The interactive effect fits in well with today's technological advances. More and more people have smartphones and are constantly connected to the Internet. The platform's ease of use means that anyone can participate and contribute to a cause close to their heart. The platform can bring participants together for a specific event, or rally people from all over who can't be physically present, but who can support the cause remotely.