When charity auctions go wrong

[Amanda Grosjean]

Hello everyone,

Over the weekend I did another charity auction, the third in 2 months. It was a high end auction with a wine tasting and finger foods (tuxes and fur coats abound). I donated a gift certificate for a portrait in a head and shoulder format, subject of the winners choice. I brought a really nice painting example, attached a sign explaining it was for display only, and a little card holder so anyone who passed by could get a business card. I was part of the live auction and even though I had hoped (and suggested) that I could stand next to the painting and sell the idea, answering questions as the artist. I had a really great response at the last (silent) auction doing this even though it was not bid on in the end. But alas, I was placed on the back of the stage, no one able to even grab a card. I became concerned when all of the tables but one were reserved for businesses that obviously paid for their workers as a group. Then I became more concerned when I noticed that almost nothing was being bid from the silent auction and tons of items were being carted away to the back, including artwork. I thought, well, even if no one bids, I guess it was free advertising. The item was worth $1,800 and I had set minimum bid at $1,000. I was pretty clear with this as I spoke with the women who ran the auction and the auctioneer (it was on the sheet she read the item from as well). They had way too many items in the live auction and they halted the wine during that time. I don't thing that anyone really understood what they were getting. So she starts the bidding at $1,000 and no one bites so she goes to 500 and then 200..ended at $400. Needless to say I wasn't very happy. I thought minimum bid was self explanatory. Was I wrong?

Of course I have an obligation to do this portrait, it is for charity and it isn't the bidder's fault. But when the painting is valued at $1,800 and it goes for $400, the service is greatly devalued. A prospective client contacting me in the future based on this event may not understand why the asking price is $1,800 when the winning bidder of this auction received the same item for the price of $400. So I now have to have a contract with the auctions I donate to. I was wondering if anyone else had to do this (I'd be happy to hear other stories) and had an example contract they would like to post.

In your opinion is a live or silent auction better? Are the ones that are high ticketed better (remembering that many of the tables were bought for workers that were obviously there for free food and alcohol)? Or is it better to be at the ones with the friendly church crowd at 40-50 dollars a plate? Also, everyone seems to be ultra-conservative with their buying, (we are offering a luxury item) is it affecting any of your businesses? If you have a waiting list are people canceling?

Thanks for sticking with the long story,

Amanda

[Amanda Grosjean]

This is a sample contract that I came up with. I am certainly not a lawyer so I would be happy to hear any suggestions on changes or any additions that I have overlooked.

Charity Auction Contract

This contract signals an agreement between the Artist, _________________, and the Charity Organization, _____________________________________________.

The Artist has agreed to donate a gift certificate for a painting of the subject of the winning bidders choice in a "Head and Shoulders" format for the ___________________________ Charity auction on _________(date)________ . The value of this item is _______. The minimum bid for this item cannot and should not fall below _________. If the minimum bid should not reach the said price, the above stated donated item shall be returned to the Artist. If the item is sold for below the minimum bid, the Artist is under no obligation to redeem the gift certificate.

I have read the above statement and agree to it

[Carol Norton]

Thanks for the very helpful contract, Amanda. This certainly would clarify most/all issues that could be addressed in events like these. Whether people read contracts or not, is another issue, but at least the artist has clearly spelled out what is expected and that certainly should solve most problems.

[Michele Rushworth]

I've done a lot of charity auctions and here's what I've found:

The best ones are the expensive ones (definitely not the $50 church dinners,)

The best ones also have lots of artists and other donors competing to get in, and they turn plenty of donors away.

Being in the live auction is better than the silent auction.

Setting a solid minimum bid is a good idea and you're right that it unfortunately devalues your reputation if the item sells for much less than that. Did lots of items go for less than the price at which the auctioneer opened the bidding? These are hard times and people understand that.

Once the auction gets underway a lot of promises go by the wayside: whether you'll get in the live or silent auction, what table you'll be at, minimum bids, etc.

Even with all of that certain very high end auctions are still worth it for the advertising.

If I were you I would talk to the auction organizers/auctioneer about what happened and see if you can come up with a workable plan for next year. I'm not sure a written contract would make much difference though. If they broke it and you made a fuss, you certainly wouldn't be allowed to donate the next year. If this is the best auction in town you might not want to burn that bridge.

With auctions I think it's pretty much pick the best ones and then take your chances.

[Amanda Grosjean]

Michelle,

Yes, I think most of the items went below the minimum bid during the live auction portion but I was bothered by the fact that it was SO far off from the original value. I emailed the woman in charge to explain that I was a bit upset that the minimum bid had been disregarded and explained that I was happy to help the organization but I viewed this as advertising opportunity in exchange and devaluing my service doesn't help. You are absolutely right, you can not burn bridges which is why I was careful with my wording. However, whether I decide to work with them again will depend on their response. I hadn't considered what I would do if the contract wasn't followed (thus burning a bridge if they don't comply and I refuse the portrait). But that certainly is a fine line as to when you are "flexible" and when you are a "doormat". Fortunately there do seem to be quite a few auctions in my area but I am not sure how many are considered "high end" yet since I haven't been at this for a full year. Thanks for sharing your experiences, Michelle. It is good information to hear that even experienced portrait artists still confront these issues.



Amanda

[Debra Jones]

The auctioneer is a big part of it. I have been at auctions where they would not feed people until the bids came in. A good auctioneer will work the room and name names and TELL people to bid.
I DON'T believe you are obliged to do it, the auctioneer should have known to say, NO SALE if the bid did not come in.

One of my first requirement of doing anything for charity is to PLUG MY EARS and never look at the bids. I do only certificates for small paintings and some never come back... some have bidding wars! It all is dependent on the mood of the group and MY salesmanship.

As a participant in the auction part, I am there to pass out information and recruit. The two live auctions I did participate in BOTH had me there as a participant, either photographing (these were pet charities) the potential clients and/or working on a different piece in progress. That let them KNOW what I would do and how it would be done. Because one was a pet rescue with a lot of active patrons and the other was a specialty dog group the auction was run by a very vocal well known MEMBER of the charity. I was actually amazed that the pricing went so high!

BUT... I would do the piece for whatever I got if I believed in the charity. IF you have a minimum bid, the charity is the one responsible for getting you that price. PERHAPS you could have the charity call the winner and explain that their error was not your problem and offer to do a smaller piece or perhaps a charcoal for the price.

[Debra Jones]

This whole thread brings up an issue I heard addressed at a function of what I remember to be the "Arts and Business Council" or something with ABC as their initials. They pointed out that artists often subsidize the arts by the amount of freebies they offer without thinking.

I WILL contribute freely to charities I believe in. Usually, as Chris does, a certificate of finite value TOWARD purchase. But I am beginning to ask a cut of the take. The first time I offered to give 15% of sales back to a charity I opened a huge ball of worms. They called it a "kickback" and said it would be very sticky. I finally said I had a set price and they could write my deposit in two checks half to me and half to the charity. They got the deduction and I got enough money to make them understand they were going through with the commission. It covers cost of stretchers, nails and canvas! After only ONE taker, I stopped offering the percentage. Nobody cared!

Most of the charities I donate to, understand I am not doing it completely out of the bounty of my wealth! I explain why. I say I have found that word of mouth is my best advertising and that I can't actually deduct any of this as the tax laws are screwed up. When I get a good organizer, they work hard to get me the proper position and visibility.

I was approached to do a few rescue groups (like I said, I do equal animals and people portraits) and I am asking them to take the orders on site if I do an adoption event and PAY ME as an expense. Much like charity bazaars which sell merchandise as a not for profit. THEY can write the final product off. When the painting is done, I bill them the cost, which is half, and they reimburse me . If it is never done, they keep the donation. I don't work, I don't make money, but they could conceivably come out way ahead.

Like I said, I am ASKING. Nobody has worked out the logistics but I think it is a great plan, especially as I am doing a pretty good Christmas miniature business. It elevates it from street art and I am doing a very reasonable quantity income.

[Alexandra Tyng]

I've only participated in two auctions and neither experience generated further commissions.

One of them was at a private school with many wealthy families. The school had a silent auction to raise money to help a teacher pay for her medical expenses because she had run through the maximum allowance on her health insurance. I had a sample portrait up on an easel and was right there answering questions. Lots of people expressed interest. I had a reserve on the portrait--half my normal fee. During the auction, the art teacher came up to me all excited. She said a parent had offered her 1/4 the reserve. "Should we accept it?" I was annoyed, but I thought, "Well, it would go to the teacher, and it's better than nothing." But then I thought, "Wait a minute! This woman knows the money is for the teacher and she's trying to bargain me down--that;s not right." So I said "no" and then someone else bid the full reserve bid! The people were very happy with the portrait I did of their daughter--but nothing else came from it.

The other experience was at a major charity benefit. The people there were dressed to the nines and there was news coverage, etc. I brought a portrait of my son, and my son came in person so people cold see the likeness. He helped talk to people before the bidding started. This was a live auction. Most of the items were things like a week at a private resort, season tickets to the baseball games, and expensive luxury items like jewelry and cars. I wondered if anyone was going to be interested in art. The bidding went up beyond the minimum to about 2/3 the actual price. Not bad.

But the people who bought it didn't want a portrait of one person--they wanted me to paint their four children, at the same price. They had several conversations with me about it, trying to figure out ways they could get around paying more. Could I put the children in the background? Yes, but it would cost more. Etc. Finally, after a year, they decided that the wife would have her portrait done. There was only one problem: she didn't want to have her portrait done! Finally I said to her, "Look, let's make this fun." She went out and bought a dress and began to get involved. The portrait turned out pretty well. The husband and wife both were thrilled with it. They had an unveiling party. But guess what? I wasn't invited! They just happened to mention the were having one. I said, "Let me send you some business cards." They said "Oh, sure," very offhandedly.

In both these cases, I could have done more follow-up. This is not something I'm very good at. I'm kind of slow at thinking about what I could do (or should have done). But I also sensed, in both of these auctions, a lack of interest in art, or at least spending money on art. I think, to be successful, you have to aim for an auction where people are interested and expecting to buy art.

[Stanka Kordic]

Hi Everyone

Charity auctions and I go way back, albeit not all of them good. Overall, I consider them a necessary endeavor, kind of like art competitions and more positively- my yoga practice. I'd much rather try a handstand in the middle of the room than be in attendance during a live auction. Kudos to you Amanda for being there with your ears unplugged!

Overall, my experience has been good. I have donated a full-head and shoulders twice, both times they generated more work. Most often, I offer a discount that is applied toward their total commission. My worst experience there was the winning family thought the entire portrait was worth that much. NOT. Once they fully understood, it went to the competing family.

I had a client in Chicago ask me to donate for a fundraiser she was chairing. I sent along a portfolio, my brochures, and she talked me up to people there. It became an intense bidding war thanks to her efforts- and a bunch of good wine I suppose. That was nice. I usually do not ask to be in attendance. I show up to set up, and run. Otherwise, I'd be hanging out at the bar with my eyes and ears shut, a nervous wreck. I'm sure I'd even smoke a cigar if offered.

Its frustrating to understand that our heart and soul efforts are competing with hot air balloon rides. People don't get that after the big event, we go and MAKE the donation. Alex is right, trying to find a charity that appreciates art is important. Otherwise, we are competing in an arena that is looking for something for nothing.

Not to mention the whole tax -deduction issue. Don't get me started on that one...

[Julie Deane]

I've had mixed results.

The first auction I ever participated, the winner was a grandparent who wanted her grandchild painted. But mom apparently didn't. End of story.

Recently, I've had a grandma buy one 25% certificate at an auction and used it towards an oil painting. And then she put money down on a second painting because I told her my prices were going to change considerably at the beginning of the year. So, she got two bargain paintings, but that's okay, as I'm starting out and want portfolio pieces.

Usually, I do a head and shoulders certificate at the Christmas event I do every year. It's a silent auction, and there is no question about what is being auctioned, because a sample is available to see.

Be aware that your art could get damaged and try to do the setup and take-down yourself. I had a frame ruined due to carelessness from one school.