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What Is a Charity Auction and How Does It Work?

Charity Auctions let nonprofits raise funds by having donors bid on items. Learn about Auction types, bidding styles, key features like Auction Gifts, and how to run successful Auctions online or in person.

Charity Auctions are online or in-person fundraising events where donors compete by placing bids on donated items, with the highest bidder winning each item. RallyUp’s Auction platform helps nonprofits run professional Auctions with automated bidding, payment processing, and features like Auction Gifts that turn non-winning bidders into donors. This complete guide explains Auction types, customization options, and strategies to maximize your fundraising results.


How Does an Online Auction Work?

Online Auctions allow donors to place bids on items entirely from their computers or mobile devices. RallyUp provides two Online Auction bidding styles to fit different fundraising needs:

English Style Auctions use traditional manual bidding where donors place bids directly and can see competing bids in real-time.

Proxy Bidding allows donors to set a maximum bid amount, and the system automatically bids on their behalf up to that limit.

Understand Auction Bidding Styles

When donors place their first bid, they enter credit card information and create a RallyUp account. This streamlines the process if they get outbid and need to increase their bid. Donors can bid on unlimited items, but RallyUp only charges winning bidders after the Auction ends.


How Does a Silent Auction Work?

Silent Auctions allow guests at your next gala or other in-person event to bid on items without an auctioneer, paddle raising, or verbal bidding. Instead, you can create and print out QR codes for each Silent Auction item so donors can easily place bids from their mobile devices.

How-to: Create QR Codes for Your Auction Items

The bidding process will then be the same as an Online Auction (see above).

RallyUp will also soon be launching the ability to print fully branded bid sheets for each Auction item.


How Does a Live Auction Work?

Live Auctions are held in person with an auctioneer or emcee. Donors bid on items they’re interested in by raising paddles or bidder cards, while spotters enter their bids into the system using each donor’s unique Guest Number.

Understand: Live Auctions

Understand: Event Balances and Guest Numbers

If you like, you can enhance your Live Auction with a Live Display that showcases each item up for bid, a fundraising progress bar, and even a live bidding feed to increase excitement and participation.

Understand: Live Display


Key Auction Features and Customization Options

Unlimited Auction Items with Category Organization

You can add as many Auction items as needed to your Campaign. For Auctions with numerous items, organize them into Categories so donors can quickly find items that interest them:
Category organization showing auction items sorted by type

If you want to highlight specific high-value items, create unique links for individual Auction items to share directly with potential bidders:

How to Create Unique Links for Auction Items

Buy It Now Option

Buy It Now allows eager donors to purchase items immediately at a set price instead of waiting for the Auction to end. This feature appeals to donors who don’t want to risk losing a coveted item to another bidder.

How to Add Buy It Now to Your Auction Items

Auction Gifts: Monetize Non-Winning Bidders

Auction Gifts is a unique feature that allows non-winning bidders to contribute donations even when they don’t win items. Since most Auction participants don’t win, this feature significantly increases total fundraising by converting interested bidders into donors.

What Are Auction Gifts and How Do They Increase Fundraising?

Automated Outbid Notifications

Donors automatically receive email notifications when another bidder outbids them. They can also opt-in to receive text message notifications when placing or updating bids:
Toggle showing option to receive text notifications for auction bids

Both notification types include direct links allowing donors to quickly return to the Auction and place higher bids:
Email showing "You've been outbid" message with button to increase bid

Winners who opted for text notifications receive both email and text confirmations when the Auction ends.


Promoting Your Auction

Successful Auctions require comprehensive promotion to attract bidders. Share your Campaign link and QR codes across multiple channels including social media, email, and your website.

How to Find and Share Your Campaign Link

How to Use QR Codes to Promote Your Fundraisers

RallyUp’s free Text-to-Give tool lets supporters text a keyword to 33100 and immediately receive your Campaign link, making mobile participation seamless.

How to Promote Your Campaign with Text-to-Give

Hybrid Events with Livestreaming

Transform in-person Auction events into hybrid experiences by livestreaming the Auction. Enable Gated Livestreaming to require ticket purchases for Livestream access, creating an additional revenue stream.

Turn Your Fundraiser into a Live Virtual Event


Pre-Registration for Increased Competition

Pre-registration allows supporters to create RallyUp accounts and save payment methods before your Auction begins. When bidding opens, pre-registered donors can immediately place bids, creating instant competition and momentum.

Understand Campaign Pre-Registration


Tax-Deductible Receipts with Fair Market Value

RallyUp automatically charges winning bidders’ credit cards when the Auction ends and sends digital receipts. If you include each item’s Fair Market Value, receipts serve as tax documentation that donors can use to claim charitable deductions.

How to Add Fair Market Value to Auction Winners’ Receipts

Important: Consult your tax advisor to verify specific tax implications for your organization.


Auction Reporting and Analytics

RallyUp provides comprehensive reports for managing Auction details and analyzing performance data.

Understand Auction Reports

Integrate your account with Google Analytics or Meta Pixel to track donor behavior, identify successful strategies, and create targeted advertising campaigns.

Understand Google Analytics

Understand Meta Pixel


Pricing Options

RallyUp offers flexible pricing for Online Auctions. Review detailed pricing information to choose the plan that fits your organization’s needs.

Understand RallyUp Pricing Options


Frequently Asked Questions

What types of items can I auction at an Online Auction?

You can auction virtually any donated items including physical products, gift certificates, experiences, services, or unique packages. Popular choices include restaurant gift cards, vacation packages, signed memorabilia, artwork, event tickets, spa services, and handmade items. Mix high-value investment pieces with mid-range and lower-priced items to appeal to all donor budgets.

How do donors place bids on Auction items?

Donors place bids directly from your Campaign Page on any device. When making their first bid, they enter credit card information and create a free RallyUp account. This account lets them easily place additional bids or increase existing bids if outbid, and enables automatic payment processing when they win items.

Can I end bidding for a single Auction item?

If you’re running an Online Auction, you cannot close bidding for a single item, but you can hide the Auction item from your Campaign Page so that no more bids can be placed. Then, once the Auction ends, you can award the item to the winner. Alternatively, you can add Buy It Now to the Auction item so that a donor can simply purchase it:

How-to: Add Buy It Now to Your Auction Items

What happens if someone doesn’t win an Auction item?

Non-winning bidders can give Auction Gifts—optional donations to your cause even when they don’t win items. This feature allows you to receive contributions from all engaged Auction participants, not just winners, potentially doubling or tripling your fundraising results.

Can donors purchase Auction items without bidding?

Yes, with the Buy It Now feature. You can set a fixed purchase price for any Auction item, allowing eager donors to buy immediately instead of participating in competitive bidding. This appeals to supporters who want to guarantee they receive specific items.

How long does it take to receive Auction funds?

RallyUp automatically charges winning bidders’ credit cards when your Auction ends and processes payments according to your connected payment processor’s schedule. Specific timing depends on whether you use Stripe or PayPal and your account settings.

Do I need to manually notify Auction winners?

No, RallyUp automatically sends notifications to winning bidders via email when the Auction ends. If winners opted for text notifications during bidding, they receive both email and text confirmations. The system also sends payment receipts automatically.

If you prefer, you can turn off automatic notification and notify winners manually instead.

How to Notify Raffle, Sweepstakes, and Auction Winners


Getting Started with Your Auction

Ready to launch your Auction? Create a free RallyUp account and start building your fundraiser. Test your Campaign before publishing by selecting the ‘Preview’ button at the top of any page during setup.

How to Preview Your Campaigns in Draft Mode

View a live sample Auction to see all features in action and determine if this fundraising method suits your organization’s needs:

Sample Auction

Need Help?

Our support team is available via chat on our website during business hours. Click the purple message button at the bottom right of your screen. You can also search our Knowledge Base for detailed how-to articles and answers to common questions.

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