What is an Underwriter & Why Use One?
From luxury travel experiences to exclusive event tickets, consignment auction items are a proven way to attract bidders and raise more at your event.
However, consignment costs can be a roadblock for some nonprofits, especially those with strict expense ratios or 'no consignment' policies.
An underwriter allows nonprofits to offer these high-appeal auction items for free by covering the item's cost. Your underwriter pays the consignment company directly, bypassing "no consignment' policies or expense ratio restrictions.
By securing an underwriter to cover the cost of the item, your nonprofit keeps 100% of the winning bid, maximizing your fundraising potential. In return, the underwriter receives meaningful exposure and recognition at your event.
How Underwriting Works
Let’s say you auction off a luxurious Mexican getaway at your upcoming gala. The consignment package includes four nights at a triple-diamond resort, complete with beach access, oceanfront pools, upscale dining, and Concierge services.
If the consignment cost is $1,000 and the winning bid comes in at $3,100, your organization would keep $2,100 in proceeds.
But, with an underwriter covering the $1,000 cost, your nonprofit would keep the full $3,100 raised.
That means 100% of the winning bid goes directly to your cause, increasing your funds without adding any expense to your event.
What's Included & How to Use These Templates
Your Free Download Includes Three Editable Templates:
- A professional Underwriter Petition Letter you can send to businesses or donors
- A simple Commitment Form confirming the underwriter agrees to cover the cost of the item
- A heartfelt Thank You Letter to your underwriter to express your appreciation
To Use Your Templates:
- Fill in your event and organizational details
- Print or download as a PDF to send to potential underwriters
Our Underwriting Templates are available as editable Google Docs or fully customizable Canva templates.
Download Your Free Underwriting Templates
Take Action
Need More Help Planning Your Event?
At LuxGive, we've helped nonprofits raise over $30 million with risk-free luxury travel experiences for auction. Our curated auction packages are proven to engage donors, elevate your event, and generate more bids,
Speak to a Fundraising Consultant today to learn how we can help you triple your fundraising impact.
At LuxGive, we believe in the transformative power of travel. Our mission is to help nonprofits raise more funds at auction through once-in-a-lifetime villa and resort experiences.
Our travel experiences feature Premium Guest Services and access to an exceptional portfolio of exclusive homes, resorts, and VIP events around the world.
Whether it’s a luxury Caribbean villa, an enchanting Tuscan apartment, or an alpine lodge steps from the powder, we have something for all your clients' needs.