Charity Auctions: Selling Donated Versus Consigned Items

There are many options when deciding which items to sell at a charity auction for both silent and living items. Many auctions use items that are donated by volunteers and members of the nonprofit, and hopefully the items are donated by local businesses as well. However, some charities choose to offer high-value consignment items to sell at their charity auction. You must understand the positive and negative results this can have.

These consignment companies supply large items, such as a flight on a MiG jet or an African safari. It may seem like a much better item than what can be obtained from donors. If your nonprofit doesn’t have the volunteers, community support, or time to solicit donations, getting items from a consignment company can help fill your catalog of items. Also, offering one of these attractive items can be a great form of marketing to attract more people to your event, but it can also have its own consequences.

Usually there are more negatives than positives. There will be a very high reserve amount that must be reached in order for the charity to cover the cost of the item. If the offer is high enough, the consignment company will usually keep 80% of the money. For example, if a consignment item sells for $1,000, the for-profit consignment company receives $800 and only $200 goes to charity. Aside from the fact that your guest brought $1,000 with the intention of donating it to your charity and you really only received $200, shoppers may feel somewhat misled into thinking that all of their money went to the nonprofit. Sometimes the term “donations” doesn’t mean what your guests think it means.

With strictly donated items, the nonprofit can advertise that “100% of proceeds go to charity.” Unfortunately, with consignment items, your promotional material may say, “a portion of proceeds” goes to charity. Now, which one sounds better to you?