June 26, 2011 | Read Time: 2 minutes
Lutheran Services in America’s Minnesota affiliate
How much it raised in 2010: $93.5-million, a 1.1-percent increase
What it did: As part of a larger event, organizers held what they called a “fund the need” auction. They took “bids” from attendees, which were actually donations given at certain levels, starting at $30,000 and decreasing each time. The auction took just seven minutes. All the gifts were tallied, and the total was announced at the end of the event.
Results: The goal for this third annual auction was to raise $250,000 from 900 people. The Lutheran Services chapter wound up with 920 people, who donated more than $400,000. Last year, the auction raised $180,000 from 320 people.
The takeaway lesson: The new approach helped to combat donor fatigue. “In most circles, the traditional gala formula is aging,” says Mary Ella Pratte, director of major gifts and special events at the Minnesota affiliate. What’s more, she says, to solicit, catalog, transport, display, monitor, and tally results for dozens of items in auction can be time-consuming for both staff members and volunteers. “Donors want nonprofits to put donated dollars directly into funding the work of the organization,” Ms. Pratte says, “rather than spending large sums of money to attract donations. They are looking for efficiencies and results.”
The new approach caused a “seismic change in the energy level in the room,” she says. Instead of guests listening to others bid against each other, they were inspired to donate together.
Outlook for 2011: The picture looks uneven across the country, says Jill Schumann, chief executive of Lutheran Services in America, which raised $462-million in 2009, the last year for which national figures are available. More and more of the Lutheran Services affiliates plan to start campaigns that they had postponed in the recession. Also, more of the affiliates are finding new ways to attract young donors. In Minnesota, giving by individuals so far has risen 9 percent over the past year because, Ms. Pratte says, people see how bad the economy is for many in poverty. “The need for innovation is essential,” she says. “Going forward, government will continue to be constrained, and we in the nonprofit sector will need to develop innovations.”
