Jan 8, 2014
Nonprofit organizations often face challenges in diversifying their funding sources. Regardless of the type of charitable enterprise, they will always depend on donor participation to ensure a sustainable budgetary framework.
However, there are also various channels individual organizations can pursue to improve their revenue streams to put toward programs intended to benefit social welfare or a variety of causes. Appeals to charitable foundations can yield strong financial resources and partnerships for nonprofit groups looking for gifts of greater monetary value, but online charity auctions can also prove to be a strong resource for those wishing to seek out a wider audience.
Greasing the wheels of donations
One increasingly popular choice for organizations and individuals is auctioning off automobiles. In fact, the British publication Worksop Guardian highlighted a few nonprofit organizations that have appealed to people throughout the nation to donate their cars in support of programs aimed at helping older individuals. The nonprofit group ExtraCare Charitable Trust is an enterprise dedicated to promoting healthy living among aged people through their work in retirement housing complexes and assisted living locations.
To improve its fundraising efforts, the group has partnered with the nonprofit Giveacar, which gathers vehicles that people no longer want. With the partnership, ExtraCare Charitable Trust will offer up usable cars for charity through an online portal, while the cars destined for the scrap yard will be disposed of at an authorized site. The profits from the sale will be donated to ExtraCare. Worksop Guardian indicated even run-down automobiles can earn the nonprofit group between £40 and £250, or about US$66 and US$412.
Similarly, the French electronic dance group Daft Punk created an online charity auction for a classic Ferrari used in one of the duo's music videos to support relief efforts in Japan following the earthquake that damaged the Fukushima nuclear plant, according to Automobile Magazine. Proceeds went to the Red Cross as they worked to help Japanese citizens recover and rebuild.
Integrate charity auction software
As nonprofit groups begin considering holding an online charity auction, they need to make sure they have the software and systems in place needed to handle online transactions and donation processing. Due to the nature of online fundraising, there will need to be a strong focus on creating a seamless platform for contributors looking to use a debit or credit card. At the same time, PCI compliance is of the utmost importance for nonprofits, as organizations that improperly handle transactional data can face stiff penalties.