Bidding to Give: An Experimental Comparison of Auctions for Charity elaborates on another method of raising money and fundraising. This article talks about having a “Charity” instead of an auction in order to organize lotteries and voluntary contributions to raise money. Instead of using an Auction, he uses the word “Charity” because money is being donated from participants who care about the charity. The author clarifies that auctions and lotteries are ways in which they dominate voluntary contribution mechanisms. In other words, this means that participants or individuals donate money freely to these contributions and are the main/popular methods of acquiring money. The title of this article “Bidding to Give” is basically the name in which participants bidding and contributing money to the cause as a donation. I believe he uses the word “Charity” instead of “Auction” because charity has a more positive connotation and is usually contributing to a specific cause whereas an auction is just an event where people bid money to buy items. This is mentioned when the author states that “a positively valued charity is introduced by making the revenue a public good for the participants.” I believe this is an important tactic that we should use because the event we are hosting in partnership with ILEAD is being done for the greater good and as a public service cause. Because of this, we want more people to be involved with ILEAD even after our event. I believe it should be strictly advertised that the event we will be holding is for the public good in our community and to acquire more volunteers and members in the long run.
The next article, “Going, Going, Sold for too Little!” states how nonprofit auctions face a “free-rider” problem that reduces how much their participants bid for prizes. In addition, it also states that there are 2 reasons why non-profit auctions receive less money which is because people want to win prizes and support the cause. However, it is not the same in other words for a for-profit auction because they earn more money. Even if a person at a non-profit event does not win prizes they still feel that they are contributing to the cause because people still have the satisfaction of raising money without having to spend money. I believe that as we are considered a non-profit despite the money involved, we will still acquire long-term supporters who will be willing to contribute their time and service to ILEAD. This also takes me back to what I said about advertising the event as a public good and to acquire volunteers and members in the long run.
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