Have you ever believed something that wasn’t true? According to Forbes, there is a direct connection between what you think and the outcome of your work. In other words, you’re lowering your results if you aren’t believing the right thing. This sentiment rings true in the world of small business fundraising.

In small business circles, there are a lot of opinions stating that fundraising is not a viable strategy. However, organizations that don’t take advantage of it will likely face missed opportunities, limited funding, and overall restricted growth. In fact, as a critical source of sustainable funding, fundraising just might be the key to your small business goals.

In this guide, we’ll dispel common small business fundraising myths that can quickly steal your potential and replace them with updated realities to inform your fundraising efforts. Let’s begin.

Myth: Fundraising is only for nonprofits.

The term “fundraising” is most commonly used in nonprofit fundraising. So, it’s no surprise that many believe fundraising is off-limits for small businesses. However, this belief is simply not true.

Reality: Fundraising is not limited to nonprofits, as small businesses can also benefit from fundraising for capital growth, expansion, product development, or other business projects.

As an example, let’s explore how a new gym might use fundraising to hit its business objectives:

• Facility expansion and upgrades: As a gym grows in popularity, additional fundraising dollars could be used to open new locations, hire more experienced trainers, or invest in new equipment. Finding support for new gyms to get their feet off the ground is essential.
• Marketing and promotion: It’s always nice to have extra wiggle room in your small business marketing budget. For gyms, they can spend fundraising dollars to plan community outreach programs or fund eye-catching outdoor campaigns to spread awareness.
• Member incentives: If your business has a membership program, you know that member perks are a primary driver for member acquisition and retention. A gym can use fundraising to increase membership and become more competitive.

Fundraising can diversify your organization’s revenue streams to give you an extra leg up on your competition. Accessing additional funds can be a game changer, especially if you’re just entering the small business market.

Myth: Fundraising is too complicated and time-consuming.

If fundraising feels like too much trouble, there is a good chance you’re thinking about it in the wrong light. Fundraising can be easy to conquer if you delegate responsibilities, choose proven methods, and set realistic goals.

Reality: Although fundraising does require planning, the right tools and strategy make it a valuable addition to your business development.

Fundraising can quickly become too complicated if you dive in without a plan and a proven method. For inspiration, here are some top fundraising strategies that are easy to pull off:

• Crowdfunding: Online crowdfunding is a reliable way to market your business and raise funds. According to NXUnite’s guide to crowdfunding, you could look into either reward-based or investment-based crowdfunding. For reward-based crowdfunding, companies could use a platform like Kickstarter to send supporters something in return for their support. On the other hand, investment-based crowdfunding involves selling a part of your business in exchange for funds.
• Grant research: For startups, especially, grant research is a worthwhile fundraising strategy. Resources like The U.S. Small Business Association and Google for Startups offer valuable grant opportunities. For example, Google’s program provides funding for every stage of your development with its “start, build, and grow” opportunities.
• Fundraising web store: For an easy fundraising solution, host a fundraising web store to sell branded merchandise. Select an easy-to-use platform that will enable you to easily stock your store, price your products, and streamline the checkout process. If your business is newer, a fundraising web store offers the additional perk of spreading your visual brand.

Don’t overlook more traditional fundraising options either. Walk-a-thons, auctions, and other virtual events can offer a high ROI.

There are other creative options your organization can explore as well. For instance, did you know you get paid to repurpose your used running shoes to earn cash? Simply partner with a sneaker recycling provider like Sneakers4Good. Then, collect gently worn used or new sneakers and running shoes from your team, ship your sneakers to the provider’s warehouse, and receive a check. Your sneakers are then repurposed to fuel micro-enterprises within developing countries.

Myth: Fundraising is all about revenue and persuasion.

Another common fundraising misconception is that small business fundraising is about persuasion and revenue generation. Although making monetary requests is part of fundraising, it’s not the only facet of a productive fundraising strategy.

Reality: Successful fundraising is built on trust, authenticity, and connection between the fundraiser and donors or investors. Fundraising goes beyond monetary requests and creates meaningful relationships based on shared values.

There is a lot more that goes into fundraising than simply persuading supporters. Refining your communication and creating a connection is essential to build their trust. You might use these tips as a starting point:

• Network: Strong relationships take time to build. Be sure to connect with your supporter community and offer them more opportunities to get to know your business. For example, you might host a pop shop for others to learn about your business, ask questions, or sign up.
• Support others: A great way to earn trust and support is by rallying around a cause your community cares about. Research your community’s needs and look for ways you can enhance your current company practices to support them. For instance, you might offer a corporate matching gift program for your employees.
• Maintain transparency: Be transparent in communicating how your organization will use any raised funds. Once supporters have backed your cause, regularly update them to share their impact. Doing so will foster trust and credibility with all of your stakeholders.
• Share online: Build up your online presence by posting regularly on social media. Share a behind-the-scenes look into your business and allow others to get to know your everyday schedule. You could even host a giveaway to boost engagement. Through digital marketing campaigns like these, your audience will be more familiar with you before you start your fundraising efforts.

Link to your website for others to learn more about your organization. This way, they can better understand who you are and why your fundraising efforts matter.

That said, conduct a website audit to ensure your website is accessible and informative. Make sure users can easily navigate pages and get an accurate sense of your organization.

Fundraising for your small business does not need to be intimidating. You’ll see results faster,by connecting with your target supporter groups and choosing lucrative fundraising options. Be open to combining fundraising options as well. For example, you could apply for grants to cover a new facility and host a community fundraising event to cover additional costs.

A fundraising auction has many moving parts—soliciting items, sending invitations, and finding a venue are just a few tasks on your planning committee’s to-do list. However, one item on your list merits your full attention: pricing.

Pricing is at the heart of a productive auction fundraiser. You could procure all the best items for your audience, but you won’t reach your fundraising potential if you don’t price them correctly. To really make a difference, you need to know how to set competitive but fair starting bids and bid increments. In this quick guide, you’ll learn how to:

• Determine Fair Market Value
• Set Starting Bids
• Set Bid Increments
• Use the Right Tools to Manage Bids

Auction pricing can vary depending on the number and type of items you procure. To solicit items effectively, make sure you leave plenty of time to research potential donors and send donation request letters. Doing so will allow you to procure a range of enticing, high-value items. With this in mind, let’s jump in!

Determine Fair Market Value

Fair Market Value (FMV) refers to an item’s retail price or list value. It’s your “source of truth” for setting starting bids and bid increments. It should also be well-documented so item donors can accurately claim their tax deductions. SchoolAuction.net’s silent auction item pricing guide suggests consulting the following resources in addition to researching the standard retail price to compare FMV:

• Item donors: Reach out to item donors to understand their evaluation of the item’s FMV. Weigh their opinion the most heavily, as pricing their item correctly is one way to recognize them for their generosity. This is especially important for intangible items.
• eBay or Amazon: For items donated anonymously or for ones that have an unknown FMV, research sites like eBay or Amazon for an estimate of the item’s listing price.
• Previous auction data: Attend auctions or look into previous auction data to get a second opinion for any item prices you’re unsure about.

Bear in mind that most auctions have a combination of tangible and intangible items. The above sources work well for tangible items. However, intangible items, such as experiences or celebrity meet-and-greets, require additional research. Look into your audience’s demographics, preferences, and interests. How highly would they value this intangible item? When in doubt, ask them, or reference previous auction data to see how well similar intangible items performed in years past.

Set Starting Bids

After you’ve identified an FMV for each item, use this information to finalize your starting bids. As a general rule of thumb, set starting bids at 30-50% FMV to keep bidders invested without devaluing your items. The starting bid range is wide to accommodate the various types of auction items you’ve procured.

For instance, starting bids for items with the most bidding interest, such as a lakehouse getaway package, should be set closer to 30-40% FMV. Starting bids for lower-end or repeated items should be set closer to 50% FMV because if you think people may not be excited about an item, you’ll want to cover your bases as the chance for sustained, competitive bidding is lower.

To determine which items offer the highest revenue potential, refer to these sources:

• Audience demographics and preferences: Consult your guest list to take note of the type of attendees you’ll have. Consider how they would value your items. For example, an audience of school parents will most likely value childcare services more highly than an audience of retirees. To go even further, NPOInfo’s guide to donor data management suggests digging deeper into your attendees’ average income and employment.
• Audience interests: Discover what sort of activities or hobbies your audience members enjoy most. How do they spend their free time? An audience of avid golfers will most likely value a new golf club set more highly than a prized painting.
• Item’s perceived specialness: Determine which factors could have the most sway in persuading attendees to bid. If your item is a pair of AirPods, for instance, is it the newest model? Or, maybe you’ve procured a one-of-a-kind, hand-made pottery piece.

Be sure to optimize your display for high-value items. For example, to show off any experiences such as a beach getaway, you’ll want to exhibit alluring photos of the exact location. Or, if you’re auctioning off concert tickets, let bidders see the concert venue, artist, and seat location. Capturing photos of your item will allow bidders to better visualize its value.

Set Bid Increments

To set the right bidding pace, set bid increments at 10-15% FMV. To determine where your bid increments should land, consider these factors:

• Bidder feedback and fellow fundraiser support: Seek input from previous auction attendees and bidders to inform your bid increment strategy. You can also ask for advice from other seasoned auction fundraisers to guide your decision-making process.
• Auction dynamics: Auction time limits, audience size, and item number are all factors that can weigh in on your bid increment strategy. If you have limited time available and a large number of items, it may make more sense to set higher bid increments.
• High-value items: For items with a somewhat higher FMV, consider keeping the bid increments closer to 10% to inspire more competitive bidding. Conversely, for your top few FMV items, set the bidding increments closer to 15% to maximize your auction revenue.

Sometimes a Buy-it-Now option makes the most sense for your top item. It’s a way for bidders to secure their favorite item and skip the bidding process altogether. You can set a Buy-it-Now price at 150-200% FMV as traditional bidding should never exceed it. Use this option sparingly—an item with a Buy-it-Now price should not be used for unique and appealing items as traditional bidding wars will likely drive up the price more.

Use The Right Tools to Manage Bids

Keeping track of starting bids and bid increments is much easier with the right tools at hand. Customizable auction software can help you execute your online, in-person, or virtual auction with ease. When searching for the right auction software, look for features like:

• Built-in bid calculations enable fundraisers to enter the FMV for each item and set starting bids and bid increments without having to calculate each by hand.
• Outbid notifications motivate guests to increase their bids for high-ticket items as well as make sure they don’t miss out on their top items.
• Online pre-bidding allows attendees to place bids prior to the event and can get the auction hype going in advance.
• Mobile bidding lets attendees conveniently place bids through their phones. This feature eliminates the need for bid sheets and encourages a quicker bidding pace.
• Virtual bidding enables virtual attendees to bid, chat, and live stream on a single screen. This makes the virtual bidding experience more interactive.

To get the most value from your software, research additional features that will streamline your event planning, execution, and follow-up. Features like auction item catalogs and procurement tracking can help you arrange your event while sponsorship displays and thank-you notes can help you finish the event well.

As you finalize your starting bids and bid increments, remember that attendees may not view the event the same way as you do. They are most likely eager to participate in an exciting auction experience rather than set on placing an exact number of bids. Therefore, it can be helpful to take a step back and remind bidders of why their contributions matter. Use storytelling tactics to help attendees visualize where their funds are going and how their auction participation will make a difference.

For most associations, membership dues keep the organization up and running. Because members must renew their memberships each year to remain active and retain access to benefits, this is a fairly reliable stream of revenue for associations. Since strong, consistent membership is key to growing your association, it’s important to satisfy and engage members to motivate them to renew.

However, relying too heavily on dues to fuel your association can put pressure on staff to retain and recruit as many new members as possible. While staff should strive to retain and grow your membership base, it’s easy to feel overwhelmed by the demand to constantly reach new members to remain profitable. To relieve some of this pressure, consider further diversifying your revenue beyond membership dues.

While associations have relied primarily on dues, times are changing and revenue diversification is essential. In a 2016 study by ASAE, the organization found that on average, dues only make up 30% of total revenue for professional associations. In this guide, we’ll explore the following types of non-dues revenue streams and how you can implement them:

• Conferences and Special Events
• Continued Learning Courses
• Merchandise
• Fundraisers

Remember that while your organization’s finances are important, members’ experiences should take first priority. To smoothly integrate these new revenue opportunities, consider combining your new revenue opportunities with members’ experiences through meaningful storytelling to promote the revenue streams. For example, you might feature a testimonial from a member who completed a course offered by your association and subsequently got a promotion using the new skills she learned.

To get started, let’s explore how conferences and special events can become valuable additional revenue streams.

Conferences and Special Events

For many associations, an annual conference or event is what their members look forward to each year. These events provide many benefits to members, such as networking opportunities, educational sessions and keynote presentations, and interactive workshops where they can learn new skills. They even have non-financial benefits for your association like assisting with new member outreach and supporting relationships with influential exhibitors and sponsors in your field.

Conferences also have clear financial benefits because attendees typically have to purchase tickets to enter—they might even purchase merchandise or food while at the conference. Additionally, any exhibitors at the conference will need to pay for their booth.

If your association doesn’t currently host a yearly conference (or is looking for ways to improve its events), follow these tips:

• Use event planning software. Choose association management software (AMS) that offers helpful event management features. For instance, your software should automate conference communications, offer an eCommerce platform where members can purchase tickets, and have a mobile app that will help attendees navigate the event. Fonteva’s guide to Salesforce for associations recommends choosing a solution that integrates with your existing tech stack so all event data will flow seamlessly into your existing reports.
• Market the event in advance. The key to profiting from a conference is attracting enough attendees and exhibitors. To reach these organizations and individuals, you’ll need to promote the event via association meetings, emails, newsletters, social media, and more. Make sure to reach out to your audience through the communication channels they prefer and use often.
• Choose a flexible event format. If you run a large, multi-chapter association or your conference is well-known in your field, it’s possible that not every interested individual will be able to attend in person. To accommodate potential attendees who may not be able to travel and attend physically, offer a hybrid event. This way, those who wish to attend in person can, and other registrants have the option to tune in from their homes or offices.

While an event does require some upfront costs and planning, it can be a large source of revenue for your association. To make sure your organization profits from the conference, carefully budget during the planning process, place effort into event promotion, and implement constructive feedback and suggestions into future events.

Continued Learning Courses

One reason many members join associations is to learn new skills and information. While covering new topics during meetings or hosting monthly educational sessions is a good starting point, offer members the chance to go deeper with educational courses.

Host these courses on your association website or learning management system and sell access to them on your eCommerce site. Morweb’s membership website guide recommends keeping these resources behind a paywall that members have to log into to access.

Some common ways to structure these learning opportunities include creating:

• A series of video lectures or presentations
• Interactive microcredential courses
• Written guides in a PDF or eBook format
• Mentorships or coaching sessions
• Discussion-based courses (e.g., members enrolled in the course read an article each week and meet to discuss it)

If your organization is smaller or doesn’t currently have the resources to build a full course, don’t shy away from offering other educational resources. For example, you might record and compile a series of webinars given about a specific topic and sell access to the series to members.

Merchandise

Selling merchandise is an easy way to passively generate revenue. Once you complete the initial preparation steps, your staff won’t need to put in much additional time or effort into this revenue stream. All your association will need to do is:

1. Design the merchandise. Make sure it includes your association’s name and branding.
2. Stock up on inventory for members to purchase.
3. List each item on the eCommerce website powered by your association management platform.

To boost your sales, take advantage of opportunities to promote your merchandise. Conferences are a great time to sell special t-shirts, hats, or bags that attendees can take home as a souvenir. Additionally, you might offer sales around special occasions such as Black Friday or offer discount codes to new members to motivate them to browse your e-store.

Fundraisers

Fundraisers are exceptional for generating additional funding for specific programs, events, or valuable member perks. For example, maybe you need to fundraise in order to support your mentorship program that connects members with college students looking for guidance. Or, maybe your association wants to partner with a local nonprofit to raise money for both causes.

While often necessary, it can be difficult to motivate members to participate in fundraisers when they are already paying membership fees. Try out these strategies to inspire their support:

• Be clear about the fundraiser’s purpose. Address any confusion about why you are fundraising at the beginning of the campaign. Because members already pay membership fees, they might feel more comfortable donating if they know there is a specific reason for the fundraiser. Be as detailed as you can to paint a picture of how their support will benefit the association (e.g., “With your support, we can book an industry celebrity to speak at our yearly banquet.”).
• Tailor your fundraising asks. When you reach out to members for donations, make sure to personalize your messages. Start by greeting them by name and explicitly naming any support they’ve given in the past. If they are a long-term member, acknowledge their years of membership. Create email segments that group donors by their level of involvement or the relationship with your association to ensure you ask for appropriate amounts.
• Have a stewardship plan ready. When a member decides to make a generous gift to your association, be ready to recognize this generosity. You might send donation eCards to members who donate to thank them for their support or even offer exclusive perks. When members see that you value their support (and that donating is rewarded with prizes and recognition), they’ll be more likely to donate again in the future.

When planning your fundraiser, utilize fundraising features in your AMS. These features will help you track fundraising progress, send donation receipts, and identify top donors. If your current solution lacks these capabilities, consider upgrading to a more comprehensive solution.

As you introduce these new revenue streams, remember to remain cognizant of things like donor or consumer fatigue. To avoid turning members off to these opportunities, make sure any new revenue stream you introduce will directly benefit members—and make sure those benefits are clearly communicated. Then, by the time renewal letters go out, members will be excited to renew and enjoy your organization’s new offerings.

When it comes to auctions, the items your nonprofit procures can make or break your fundraising success. To maximize your event’s potential, your items need to be unique, high-value, and appealing to your specific supporter base.

One effective way to showcase your nonprofit’s auction items is to design a catalog. By listing all of the available prizes in a single booklet, along with additional information about your fundraiser and organization, your auction catalog can serve as both a marketing tool and a guide to the auction event itself.

To design an auction catalog for your nonprofit’s next event, try the following five strategies:

1. Understand When to Create an Auction Catalog
2. Incorporate Your Nonprofit’s Branding
3. Write Item Descriptions With Your Audience in Mind
4. Acknowledge Your Event Sponsors
5. Develop Digital and Print Versions of Your Catalog

While some nonprofits pay professional graphic designers to produce their auction catalogs, it’s possible to make one yourself with the right tools and a little creativity. There are plenty of templates available online which you can customize to meet your organization’s needs, no matter your level of design experience. Let’s dive in!

1. Understand When to Create an Auction Catalog

Although creating a high-quality auction catalog isn’t as difficult as it might seem, it still requires an investment of time and effort. So, it isn’t necessary to make one for every auction your nonprofit might host.

According to the fundraising experts at Winspire, auction catalogs are best suited to in-person live auctions. These auctions tend to feature fewer items than silent or virtual auctions, and the list is finalized further in advance, giving you the time to create a catalog that include all of the items you’ll feature.

Attendees at an in-person silent auction are most engaged when they’re actively browsing the tables instead of reading a booklet, and it’s easier for virtual auction participants to view items directly in your event software rather than going back and forth between the platform and a catalog. For an in-person live auction, however, it’s helpful for participants to read through a guide to the event and choose the items they’re interested in before the intense bidding process begins.

The silent and virtual auction alternative to a live auction catalog is well-designed bid sheets. Above the space where participants write their bids and contact information, include a creative title, description, and photo of each silent auction item on the corresponding sheet to catch supporters’ attention.

2. Incorporate Your Nonprofit’s Branding

Branding makes your nonprofit recognizable and memorable for supporters, and it helps maintain consistency across various marketing materials. Your auction catalog is no exception. As you design the booklet, make sure it accurately reflects your nonprofit’s brand.

Kwala’s guide to nonprofit branding lists several essential brand aspects to incorporate into your auction catalog, including:

• Your organization’s name and logo. Especially for newer supporters, these elements provide a first impression of who your nonprofit is and what you stand for, so they should appear on the cover page of your auction catalog.
• A consistent color scheme. Make sure the text colors in the booklet contrast adequately with their background colors to improve readability.
• Interesting but legible typography. Add visual variety to your catalog by choosing two fonts—one for headings and one for body text—that complement each other. However, to avoid a cluttered look, it’s best not to use more than three different typefaces. Also, make sure to choose typefaces that are easy to read, even for titles and other aspects of your catalog where you might want to add a visual flair.

Additionally, consider writing a few sentences in the booklet detailing your organization’s mission and how you plan to use the funding you bring in from the auction. This way, supporters can feel confident that their event contributions will further a good cause.

3. Write Item Descriptions With Your Audience in Mind

Your auction catalog should contain enough information to be a useful resource for event participants, but not so much that it could become overwhelming. In most cases, a total of 12-15 live auction items allows you to keep both the catalog and the event itself to a reasonable length.

As you describe each item in the catalog, consider your supporters’ perspective by following these tips:

• Group the items into relevant categories. To appeal to different supporters’ interests, organize the catalog so they can easily find what they want to bid on. You might include categories such as travel, food and beverages, arts and entertainment, and family-friendly prizes.
• Keep your descriptions concise. You’ll want to fit a maximum of two to three item descriptions on each page. Make them easy to skim by keeping paragraphs short and using bullet points when possible.
• Mention any item restrictions. If concert tickets are only valid for certain dates or a vacation package limits the winner’s choice of airline, let supporters know in the catalog so they can make an informed decision about whether to bid on the item.

Next to each item description, include a related image—either a photo of the physical item or something related to the experience you’re auctioning off, like a picture of the destination the winner of a vacation package would travel to. This not only makes your catalog design more aesthetically pleasing but also gets supporters excited about bidding on each item.

4. Acknowledge Your Event Sponsors

Many fundraising events, including auctions, can benefit from corporate sponsorships. Some businesses may be willing to support your event through financial contributions, while others will provide auction items at a reduced cost or as in-kind donations.

However, for a partnership between a business and a nonprofit to succeed, it needs to be mutually beneficial. Your sponsorship requests should clearly state that in return for your corporate partner’s contributions, they’ll receive free publicity from your organization. The easiest way to do this is to include your sponsors’ names and logos in your event marketing materials—including your auction catalog.

If a business donated a specific auction item, include a brief acknowledgment under its description, such as “This item was contributed by [sponsor name]” accompanied by the business’s logo. Then, add a page listing all of your financial sponsors with a title like “Thank You to Our Event Sponsors” to show your gratitude and honor your agreement.

5. Develop Digital and Print Versions of Your Catalog

Make sure your auction catalog is finalized well in advance of your event, so you can both convert it to a PDF and send it to a print shop to make physical copies. There are two main reasons for this, and the first is convenience. During your auction, participants can choose whether they’d prefer to look through the print booklet or download the digital version on their smartphones.

The other reason is to improve your event marketing strategy, as aligning your online and offline efforts allows you to reach more supporters. Include a print catalog with any event invitations you send by mail, and link to the PDF on your nonprofit’s website and in emails to give supporters a sneak peek of your auction items.

An auction catalog is an essential tool for the success of any in-person live auction events your nonprofit may host. Well-written item descriptions convince supporters to bid on your high-value items, and incorporating your nonprofit’s branding into both the print and digital versions of your booklet helps align your catalog with your other marketing efforts. Plus, it’s a great place to thank the sponsors who made your event possible.

After your auction, revisit your catalog to evaluate its strengths and areas for improvement. As with any marketing strategy, time and practice will help each auction catalog you make turn out better than the last.