Setting a net income goal for your benefit 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 at your silent auction and live auction can seem difficult, especially if this is your first charity auction event.

While it’s impossible to calculate an exact dollar amount, the best way to estimate revenue is to multiply the number of expected guests at your benefit auction by the amount each could be anticipated to spend. Guests who are present at an event where the charity auction is not the primary purpose of attending are likely to 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 organization offers ticket prices that are low, the average spent per guest decreases.

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 goal for your fundraising event is like throwing darts at the target while blindfolded. If no goal is decided upon in planning the benefit event, there is no way to evaluate the benefit auction after it ends. If there was a clear budget and goal set before the fundraising event, then we can review the actual income and expenses afterwards and decide if the event was successful or if changes need to be made for the next fundraising auction.