The world’s largest auction, the stock market climbed to a five-year record setting high today giving investors more confidence in the US market. Google even climbed to $800 dollars a share for the very first time in history. This boost in our stock market is not only a good sign for the economy and a boost to consumer confidence, it is also great news for this year’s benefit and charity auctions.
As all nonprofits know, there are some donors that can continue to be consistent givers even through economic storms. However, many others are hurt by the economy and are forced to curtail their contributions. Some reduce their giving based solely on the fear of the unknown, the uncertainty in our economy. This is entirely understandable, a “circle the wagons” mentality. Philanthropist’s confidence often reflects consumer confidence.
Likewise our New York Stock Exchange not only reflects an actual auction, it is in fact considered an auction market. At the NYSE, buyers enter bids, the amounts that they are willing to pay for a given stock. At the same time, sellers enter the prices they are willing to sell at, matching bids and orders are paired together, and sales are made. Sounds like an auction to me! Right now bids are up, sales are up, and there goes our economy, making records as I speak. The Dow Jones Industrial Average ended at 14,035.67, very close the all-time closing high of 14,164.53, which occurred on October 9, 2007, over five long years ago.
From what I have experienced so far, 2013 may be a record breaking year for many nonprofits as well. Charities that opened their doors during a tough economic downturn may see their dreams become a reality this year. Older nonprofits that continue to stand the test of time may finally feel the winds changing once again. The ebb and tide of the the world’s largest auction (the stock market), does affect the benefit and charity auctions in our nation.
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