Setting rules or guidelines for your silent auction can save you a lot of trouble. You’ve got something to fall back on in case of bidding confusion, and you’ll be more prepared to give your guests a smooth experience.

Believe it or not, auction rules don’t have to be restrictive for bidders. The right rules can simplify the auction process for them, encourage engagement, and maybe even generate a little healthy competition.

When you’re ready to start planning your next auction, use these tips to set rules that will improve everyone’s experience and help maximize your fundraising potential.

1. Start by reflecting on past auctions.

The best place to start when developing effective guidelines for your auction is your organization’s past events. Reflect on these questions as a starting point:

• What went wrong during previous silent auctions?
• Which parts of the auction were a success?
• What processes could have been easier?
• Did you get any actionable guest feedback from post-event surveys?
• How did attendees feel about the auction as a whole?

Speak with past organizers if you can, and ask these questions to your volunteers or event staff. The more input you can get, the better. Once you have the answers, start planning ways to address any shortcomings and apply guests’ feedback.

If this is your nonprofit’s very first auction, don’t worry. Look back at other events you’ve hosted, or confer with other event organizers in your area and see if you can take any insight. Another great place to start is good ol’ Google. You can find so much information online for free, like Handbid's silent auction guide, to help you plan.

2. Improve the guest experience through clear communication.

One of the most basic yet essential guidelines you need to set for your silent auction is a clear opening and closing time. Communicating when the auction is open for bidding and counting down to its close is an excellent example of a rule that will help guests by giving structure and simplicity to their experience.

Consider the questions attendees tend to ask, or put yourself in their shoes. What would you want to know? Then create rules that answer these questions and provide more clarification.

Rules can also help engage attendees. For example, setting minimum bid increments can cause less confusion, and the right bid increments can create some friendly competition and drive bidding in your auction.

3. Protect your payments. 

Fundraising is the main reason you’re hosting an auction, so it’s crucial to put a structured payment process in place that protects your organization and sets expectations for winning bidders.

Here are a few example rules for a payment process that benefit both your organization and your attendees:

• Guests have to show payment receipts before receiving their items.
• All sales are final, meaning guests can’t revoke their bid after winning.
• Attendees must keep a credit card on file with the organizers upon arrival to the auction. 

Setting rules that communicate what your checkout process is will save you a lot of time and headache from chasing down money for weeks after the event. It will also keep your bidders from waiting in a long line at the end of the night.

4. Set rules for your donors, too.

It can be daunting to set rules for donors since the items you acquire from them make your entire auction possible. However, you can appreciate your donors and set guidelines for them simultaneously.

Ask your donors to provide descriptions and fair market values (FMV) for each of their donated items. This ensures that you provide your attendees with fair prices and high-quality items. You should also be prepared to communicate with your donors that you and your organization have the final decision on FMV and whether the item is included in the auction. Some items consistently don’t do well in an auction, and you want to avoid an overwhelming amount of items that won’t be valuable or will get zero bids.

Don’t forget to send out timely, personalized thank you letters to each person or business that donates an item. These relationships are beneficial for your nonprofit, and you want each and every donor to feel comfortable donating items again in the future.

5. Let auction software do some of the work for you.

Online auction software can take some pressure off your organizers and improve the attendee experience. Auction software allows you to set the parameters of your auction ahead of time in the platform. Then you don’t even have to worry about setting and explaining those rules to your guests.

Take a look at a few examples of the ways software can simplify your auction rules:

• A quality silent auction platform won’t allow guests to revoke a bid.
• You can set your desired bid increase increments, and your online platform automatically prevents guests from increasing their bids by minuscule amounts.
• One of the best features of online auction software is outbid notifications. Mobile apps that alert bidders when they’ve been outbid allow for more engagement and encourage bidding wars. 
• Mobile bidding allows attendees to check out directly from their phones, avoiding confusion and long checkout lines. 

There are many options for auction software, so decide which features are most important to you, keep your budget in mind, and do your research before deciding which platform best suits your needs.

About the Authors

Jeff Porter

Jeff Porter, Founder & CEO of Handbid, has spent 18 years in the nonprofit industry. In 2004 he founded the Prader-Willi Syndrome Association of Colorado where he still resides as board chair. Jeff learned early on that nonprofits desperately needed better and more affordable fundraising solutions.  Leveraging his software background, he built most of the tools his charities used, and in 2011 he launched Handbid at his own fundraising event.  The goal was to improve the guest experience, reduce administration and increase revenue.  Handbid accomplished all of those goals, effectively doubling revenue in its debut. Nine years later, Handbid's suite of tools has delighted over a half-million guests, generated millions of bids, and helped thousands of charities raise well over $100 million.