Two years ago I had no idea how a Barter company could be beneficial to a non profit organization. Actually I didn’t have a clue as to how the whole barter system even worked. Members of a Barter company utilize “barter” dollars to purchase items or services that they need. The US government recognizes 1 barter dollar as equal to one American dollar. Working through a barter company, rarely does direct trade take place. Instead, a company puts services or items up for barter, they then earn barter dollars to inturn purchase other items of services of their choice.
Here is an example: a restaurant purchases 300 barter dollars in Pest Control Services, inturn the Pest Control company might use their 300 barter dollars to purchase accounting services. Get the idea?
There are many Barter companies out throughout the United States and each have their own set of rules and pricing. Some charge monthly fees or yearly fees, while others still get a cash payment everytime a trade takes place.
So how can this benefit a non profit? By creating sponsorship packages that you can sell on barter, you can use your barter dollars to purchase trips and items for your live and silent auctions at your events.
Here is an example of a Barter Sponsorship you might put up for barter:
500 Barter Dollar Sponsorship for Evening Gala includes:
1. 1/2 page ad in the printed program
2. Two VIP tickets to the event
3. Your company logo on all flyers promoting the event
4. Banner ad on our website promoting your company
5. Ad in one of our email newsletters
6. Your logo on all advertising of event
If you are able to sell 4-5 of these sponsorships you can inturn use your barter dollars to purchase some amazing trips (minus airfare of course).
Depending on the barter company you are using, you will often find trips that include hotel stay AND meals. Everyone likes to travel, so you can never go wrong with trips in your auctions!!! There are countless things on barter you can utilize for your auctions.
Remember that unusual items may do better then you think in an auction. I have seen “new kitchen counter installation” go as high as $4,000. Never rule anything out.
Utilizing a barter company is a great way for non profits to get items for drawings, live and silent auctions and even online auctions. Be sure and search out a barter company that deals with local companies in your area. There are plenty of barter companies throughout the country but you want to make sure you join one that deals with local companies as these will most likely be who you will want to sell any sponsorships you create to. The local companies will want the local advertising you can offer them. Using barter is a great way for non profits to secure great items and services they can use in their fundraising efforts.