When it comes to fundraising in the nonprofit world, you may hear the terms “consignment” and “risk-free” and “reserve price” thrown around, especially if you’re talking about auction packages!
Let’s walk through exactly what these terms mean, so you can make the best possible decision for your next nonprofit fundraiser.
What is a Consignment Fundraiser Package?
If you’re preparing to run a silent auction, live auction, raffle, or a sweepstakes fundraiser for your nonprofit, sourcing your travel package on consignment is a great idea because it means that your nonprofit will take on zero financial risk.
“On consignment” essentially means that your nonprofit only pays for the package if and when it is sold. If the package doesn’t sell, no sweat — you don’t pay for it!
Here’s an example: say you select our Disney World and Space Adventure Vacation Package, and are planning to use it in your upcoming fundraising auction. Great! The reserve price (ie., the price your nonprofit pays) for that package is $4,800. We recommend that you list the opening bid above the reserve price (our Auction Advisors will help you
determine a good starting bid), so you make money no matter what.
But here’s the great part: there is no upfront cost to your nonprofit to use this vacation package for your fundraiser. You simply reserve it and pay for it if it is sold during your fundraiser! Say you sell the Disney package for $10,000. Anything above the $4,800 reserve price goes straight to your nonprofit, so congrats! You’ve made $5,200!
(As a side note, in most cases, your nonprofit will also have the option of selling multiple of the same vacation package at once, which can also increase your raise! This is something we will explore more thoroughly in an upcoming blog post.)
But what if, for some crazy reason, no one is interested in going to Disney World this year, and the package doesn’t sell? Thanks to the magic of consignment, your nonprofit is not on the hook. With Philantopia’s pricing structure, your nonprofit only pays for the travel package if someone buys it.
This is why we say that our packages are risk-free. No matter what happens, your organization will come out on top financially, which is exactly what everyone wants.
Let’s summarize.
Consignment Travel Packages
All our travel packages are offered on consignment to nonprofits, which means your nonprofit is only responsible for the cost if it sells.
Reserve Prices on all Packages
Your organization will always pay the “reserve price,” which is the special pricing for nonprofits.
Risk-Free Packages
Philantopia’s auction packages present zero risk to your nonprofit because you only pay for them if they are sold at your event. There is no need to pay for an entire travel package up front.
Got it? Good! Browse our extensive library of risk-free luxury travel packages and dream about what your donors would find most exciting for your next auction, raffle or sweepstakes fundraiser. Every dollar you raise above the travel package reserve price goes directly toward your organization, and we’ll provide the marketing materials, so you can focus on throwing a fantastic event!