Charity auctions raise money for organizations and causes. Auctions for charity are popular in their variety of formats--silent, bachelor and item auctions. In most cases, auctions for charity involve donated items, time or materials being auctioned off to raise funds for the organization or cause. Many charitable auctions are exempt from retail tax, however, before hosting a charity auction you should check local retail tax statutes and requirements.
History
Charity auctions began primarily with religious organizations and estate sales. In England, during the 17th and 18th centuries, wealthy patrons who passed away would leave their household or worldly items to the church. Items collected from the estate would then be auctioned and the money turned over to the parish coffers or used to feed and house the poor. This tradition would continue well into the 20th century with charity auctions beginning to include services and individuals.
Significance
A charity auction is a way to make money that is often times considered fun and entertaining. When an organization, such as a school, needs to raise money it will ask for donations. Those donations are then auctioned off, often at prices greater than their value, and the money is then used to fund school programs or specials. These types of auctions are entertaining because they challenge the competitive spirit and often elicit more funds than just asking for straight donations.
Function
When planning a charity auction, determine whether it will feature goods, services or people. An auction for goods may require donations of the goods to be auctioned. Services require donations from local companies, such as plumbers, gardeners and roofers, who will donate a service they perform that can then be auctioned for fundraising. In most cases, goods and services are donated as goodwill gestures to the organization raising the money. A people auction usually involves a bachelor or bachelorette who is auctioning their time for a date. These types of auctions are popular in upscale circles and considered to be in good fun. Actors and actresses may also donate their time with a tour of their sets, a lunch or a picture opportunity as something that will be donated and auctioned.
Types
Different types of auctions require different levels of planning. The auction format needs to be established before advertising the event. Silent auctions are popular. Guests can mingle, enjoy good company and education about the charitable organization while viewing the items, services or potential dates available for auction. When guests decide to bid on something, they can write down their name and place a bid. Silent auctions usually go to the highest bidder if they are present and if not, then to the next highest bidder. Payment is due upon the winner being notified. Most organizations will accept checks, but not credit cards depending on how they are set up. In the event of a live auction, an auctioneer will introduce the items or individuals and allow live bidding to occur, either with paddles, hand gestures or call outs of amounts. Most auctions begin with a minimum bid to insure some funds are raised.
Warning
A charity auction should always be tasteful. A charity auction is not a yard sale or a used item sale. Auctions are designed to encourage competitive bidding which means the items, individuals or services should be worth consideration. If individuals commit their time or service to the auction, they should deliver as promised when that time or service is auctioned.
