Setting a net income goal for your profit auction is one of the most important elements of planning your fundraiser. Your nonprofit staff and volunteers need to have a goal to aim for when creating the charity event. But estimating how much fundraising money could be raised in your silent auction and live auction can seem difficult, especially if this is your first charity auction event.

While it is impossible to calculate an exact dollar amount, the best way to estimate revenue is to multiply the number of guests expected at your benefits auction by the amount each could be expected to spend. Guests who are present at an event where the benefits auction is not the primary purpose of attending will likely spend less than guests who are only at an event for the fundraising auction. If the charity auction sells corporate tables or tickets at higher prices, you can expect each guest to spend even more. If your nonprofit offers low priced tickets, the average spent per guest goes down.

When a nonprofit organization believes its goal is to “make as much money as possible,” it has not completed the basic planning stages of a successful charity auction. Not having a specific target for your fundraising event is like throwing darts at the target blindfolded. If no goals are decided in planning the charity event, there is no way to evaluate the benefits auction after it ends. If there was a clear budget and a defined goal decided before the fundraising event, then we can review the actual income and expenses afterward and decide if the event was successful or if any changes need to be made for the next fundraising auction.