How to Run an Online Auction Fundraiser in 2026: A 12-Step Guide for Nonprofits

Updated June 2026

It’s possible for online auction fundraisers to net 30-60% margins and find donors that are hundreds of miles away from your event. But this is only possible when you have a strong online auction fundraiser guide that has a strong framework. What you need is a 12-step process that you can rely on in order to maximise your fundraising capabilities.  

Running an online auction fundraiser allows nonprofits, community groups, and schools to raise money. This is done through a digital bidding process on items that have been donated to the cause, and it runs over a 7-14 day period. It’s a fantastic way to replace in-person auction formats, but it can also complement silent and live auctions perfectly. 

We have everything covered in 12 simple steps. From platform selection all the way through to post-event analysis, we have you covered. We’ll even make sure to take you through legal compliance and fulfillment to ensure there is no stone left unturned. 

Ready to make a difference? PayBee has you covered. 

1. What Is an Online Auction and How Does It Differ from In-Person Formats?

Definition of an Online Auction Fundraiser  

Online auctions are used for buying and selling goods virtually, and they can be used as a way to enhance or replace existing live auctions. With an online auction fundraiser, the auction is used to raise money for a cause, and bids are placed via mobile or website over a period of 7-14 days. You can think of it a lot like a silent auction, but it takes place online. 

Not all online auctions are exclusively digital, however, and many of them will use a hybrid format that incorporates physical and virtual forms of bidding. It makes the process a lot more accessible to a wide range of people. For many, hybrid methods are a core part of how to host an online auction for nonprofits and other organizations. 

Online vs. Silent vs. Live Auctions

Online auctions are remote and take place over the course of several days without an auctioneer. It allows people to participate in an auction from across the world, which opens up fundraisers to a much wider audience. Bidding typically takes place either in the run-up to an event or as a standalone fundraising opportunity. 

Silent auctions have often been viewed as the main way to raise funds for organizations. Guests are given the opportunity to browse the items on offer, and then they are encouraged to place their bids on a piece of paper. It’s more digital these days, with phones normally replacing paper, but it’s a great way to combine a gala or corporate event with something meaningful. 

Live auctions are all about competitive bidding, and the auctioneer is there to cause a frenzy and get people excited about the premium items on offer. It doesn’t matter what’s on offer; a good auctioneer finds a way to get people feeling the energy and raising their bidding paddles. 

Benefits and Limitations 

But what makes online auctions so good? While it has its limitations and isn’t a perfect method for fundraising, it certainly has its perks. 

The Pros: 

• It allows for a much bigger audience and international participation 
• There are much lower overheads, which means you’re not losing as much money
• Longer bidding windows mean there is more opportunity for people to bid 
• Bidders aren’t rushed, which means they can take their time 
• Everything is digital, which means it’s easier for you to keep track 

The Cons:

• You don’t get that fantastic in-room energy during the auction 
• There is a lot less competitive frenzy over the items being auctioned 
• You do risk potential shipping complications after the auction 
• It requires very strong promotion to get out there and achieve a good reach 
• Some bidders might get bored with long bidding times 

How is an Online Auction Different From an In-Person Auction?

The great thing about online auctions is that you save a lot of money on the costs because you have fewer overheads to worry about, and you also have a greater reach. Being able to gain bids from international supporters can be the difference between success and failure for a fundraiser. But in-person auctions are not without their importance. 

They have the win when it comes to competitive bidding and the sheer energy you find in the auction room. Even silent auctions, despite their quiet and more reserved atmosphere, have that buzz in the room. But this is where hybrid auctions can swoop in and give you the best of both worlds. It’s possible to have a live auction and an online auction at the same time. 

With hybrid auctions, most organizations will have an online auction in the weeks leading up to the fundraiser (or months in some cases) and then an in-person auction during the actual event. The hybrid method really allows you to maximize your capabilities by appealing to an even wider audience and giving people the choice with regard to how they want to bid. 

2. How to Choose the Right Online Auction Platform

Definition and Types 

An online auction platform allows you to get everything organized and ready to go in one place. It makes the process streamlined and ensures you have the support you need when you need it. Additionally, it gives your bidders peace of mind knowing that they are bidding through a reputable platform. 

There are some fantastic free options, such as Givebutter and Zeffy, which can help you get started in a way that’s more accessible. Additionally, there are some mid-tier choices that are more affordable but do cost money to use, and these include Auctria and RallyUp. They’re all great platforms to use and can help give your online fundraising a boost. 

The premium options tend to give you the most for your money and are able to help you plan and set up the most elaborate auctions. Many premium platforms will also have the facilities to run in-person auctions as well, allowing you to run hybrid events. The leading platforms for online and hybrid auction fundraising include: 

• PayBee
• OneCause
• Handbid
• School Auction

It all depends on what you need and how much you are able to put into funding an online auction. Platforms like PayBee even have a free membership fee for all online auctions. After all, nonprofit online auction setup doesn’t have to be difficult. 

Practical Comparison and Criteria 

When you’re setting up your auction, it comes down to looking at things like the size of your group, how many items are being listed, and the tech that you’re comfortable with using. For example, are you looking to implement mobile bidding? Do you want to use an auto-bid system? Should bidders have the chance to use a buy-it-now feature instead? 

The size of your organization and the attendees will also have an impact on the options available to you, costs, the platform you should use and support. This applies whether you are seeking to do a fully online auction fundraiser or a hybrid variation. The size is fairly easy to calculate based on the following criteria: 

• Free Platforms: Small PTAs and Organizations 
• Mid Range Platforms: Attendees of 100-500 people at the fundraiser
• Premium Platforms: High-revenue galas and events with 500 or more attendees

You will also need to calculate your Total Cost of Ownership (TCO). With regard to fundraising platforms, this will be the platform fee and the processing fee. With PayBee, the platform fee is free for online auctions, with a 2% processing fee on online transactions. For in-person auctions or those who want a hybrid event, the processing fee is the same, and the platform fee is $599.

Try PayBee Free Today!

3. How to Define Goals, Timeline, and Fundraising Targets

SMART Goals 

SMART stands for:

• Specific. What needs to be accomplished? Which steps need to be taken? Who is responsible?
• Measurable. Make sure you can track your goals easily and know when they’re complete
• Achievable. Are your goals realistic? Can your team reasonably achieve your goals? 
• Relevant. Why are you setting your goal? You need to have a clear answer to reach it. 
• Time-Bound. You need a set timeframe so that you and your team stay on track and locked in

A good example of this within the fundraising sector would be to look at it this way. You want to achieve $25k net from a 10-day auction. There are 50 items included, and the closing date for bidding is October 15th. Having set goals and timelines will help you to achieve the most you can from your fundraiser auction, and the SMART method is tried and tested. 

Practical Steps 

The best way to set your goals is to work backwards. You should look at the net goal that you set yourself and go back from there. How are you going to achieve them? Consider things like having an open auction four weeks pre-closure, plan to allow two weeks for fulfillment to avoid issues with shipping as much as possible. The little things build up into a stronger plan. 

This will give you a good structure to work with and allow you to fill in the gaps. After you set your net goal, you’re going to need to look into milestones, budgets, and the responsibilities that will be assigned to your team. This is also the right time to form a fundraising committee so that you aren’t stuck with the burden of every little detail. 

Before the fundraising campaign is officially launched, you will also need to ask yourself the following questions: 

• Have you got social media set up to advertise the campaign? 
• How will you be collecting funds?
• Will you be using digital methods or a hybrid combination? 
• Do you have traditional PR for advertising or purely social media? 
• Have you planned a dry run of the event to ensure everyone is prepared?

Even after you launch your fundraising auction, there is more for you to do. You have to ensure people remain engaged online so that the bidding doesn’t stall completely, and you can do this by staying active. Remind people about the story behind your campaign, give your biggest donors shoutouts, and show people how close you are to your target. 

4. How to Select and Source Auction Items for Online Success

High-Performing Items 

You will need to ensure you have strong evidence that the items being bid on are being priced at Fair Market Value (FMV). This helps reassure your bidders that they are not paying inflated prices and that they can help raise money for a good cause without feeling fleeced. Similarly, you will also need to ensure you have crisp, clear photographs of each item to create interest. 

Shipping and logistics need to be planned carefully, and you should offer a solid timeline on your website and in your PR/informational packages to let bidders know when they can expect their items to arrive. This is often the trickiest part, and you’ll want to ensure that any physical items are safely and properly packaged before they get sent off. 

It’s also worth noting that with online fundraisers, experiences and gift cards will often outperform physical items. This is because there are fewer shipping risks involved. However, it’s still good to have a nice balance of experiences, days out, and gift cards alongside a few interesting and high-value physical items that might pique interest. 

Practical Sourcing 

When sourcing items for your online auction fundraiser, it is always a great idea to speak with your board. They will usually have some great ideas for where you can find good deals on high-value products. Plus, more often than not, they will also have contacts that can give you a hand to keep costs down. But you have more than just your board that you can look to. 

Soliciting from local businesses can be a great way to build stronger bonds with your community and give small businesses exposure to help increase their footfall. You should also ensure that you secure anything from local businesses at least 8 weeks before you launch, so that you can showcase the items, gain interest in the auction, and ensure the suppliers are placated.

If this isn’t your first fundraiser and you’re simply looking to make improvements and take things up a notch, you can also ask past donors. Most of the time, they will be happy to work with you again so long as they had a positive experience. This can also lead to sponsorships and repeat contributions to the cause. 

Even if you haven’t run a fundraiser in the past, you can speak with other organizations and see who they sourced their items from. You’ll find that most companies are more than happy to help when it comes to charity, especially if it’s an online auction for schools and PTAs. 

Now, when it comes to the actual items, you’ll want to ensure that you don’t have too much going on. You should aim for 30-50 items that range from $50-$500 FMV to appeal to a wide range of bidders. This should be followed by 5-10 premium items that are listed at $1,000 or above. This means that your fundraiser will also pique the interest of high-value bidders. 

You should include a balanced mix of items for people to bid on. While some of them can be valuable physical items, you should also include dining opportunities and experiences, gift cards, and even short overnight trips. Professional services are also quite popular, and bidders will feel reassured knowing there is a selection of virtual and physical items to choose from. 

Some of the most popular items in an online auction include:

• Experiences
• Gift cards
• Local services
• Virtual items/services
• Vacation packages
• Dining experiences
• Professional services
• In-kind donations

5. How to Set Up the Auction Listing and Item Details

Effective Listings

If you want your listings to do well, then you’re going to need to follow a strict set of instructions. To make it easy, we’ve put it in a quick list for you to check off:

• A clear title that states what the item is 
• A minimum of 3 photos (more preferred) in high definition (HD)
• A description of 75-150 words that offers a detailed look at what the item is 
• The stated FMV so that you are fully transparent with bidders 
• The starting bid, which should be 30-40% of the FMV
• The bid increment and optional reserve (if applicable) 

Practical Guidelines

All of your photos should have a neutral background, preferably white or off-white, to help make the product pop and keep it as the center of attention. Natural light is your best bet as it will bring out the best of the product and doesn’t cause the same glare or saturation as artificial touch-ups and filters. 

The descriptions for your products should read just like copy on a website. They should be passionate and detailed, while also remaining concise. You also need to make sure that you specify everything that’s included as well as the things that aren’t. It’s important to be transparent with bidders and let them know everything they should expect before buying.   

How Do I Price Starting Bids and Set Reserves?

You should start the bidding at 30-40% of FMV. If there are minimum-value constraints on any of the items, then the reserves should be set at 70-80% FMV. However, it should be noted that online auctions generally provide better results without reserves. 

6. How to Configure Bidding Rules and Auction Mechanics

Bidding Structures

There are several bidding structures available for auctions. The standard structure is known as an open ascending method where the auctioneer announces the items and the starting bid, and then raises them incrementally from there with each new bid. 

Proxy bids are where a person places their maximum bid automatically. That way, when the platform in question detects that the bids are increasing, it will incrementally raise the proxy bid until it hits the limit provided. 

Sealed bids work the same way as blind auctions. The maximum bid is placed into an envelope in secret, and at the end of the auction, the envelope that contains the highest bid wins. Similarly, silent auctions allow for incremental bidding over the course of several days, and the bids are placed online via mobile or computer. In person, the bids are placed on paper.

Practical Choices

You should keep bid increments at 5-10% of the current bid. You can also enable auto-bid and extended bidding for digital bids, and if you use the two-minute rule, you can prevent sniping. The way this works is that if someone places a bid within the last two minutes of the auction, it is then extended by a further two minutes until the bidding ends. 

If you have any items with a known maximum value, you can use the buy-it-now feature. This allows participants to buy an item outright without bidding. It’s good for those who really want something and don’t want to wait, and it works perfectly for items that can’t go above a certain price. It also has the potential to raise more money than the bidding process. 

What Bidding Structure Works Best for Online Auctions? 

The standard ascending structure does work well for online auctions, but it’s best to combine it with proxy bidding and auto-bids to ensure that everyone has a fair chance. The bid increments help keep it fair, and the proxy bidding means that no one feels pressured to keep checking the auction throughout the time it’s live. 

However, your main bidding structure should be the online silent auction. Mobile bidding is much easier for virtual fundraisers, and it’s more accessible for those who want to get involved. They will be alerted when they are outbid, and it usually takes place over a period of 7-14 days. You can even incorporate standard bidding by using a hybrid auction for your fundraiser. 

It is important to maintain the two-minute rule for extended bidding to prevent sniping at the last minute. Your bidders will appreciate its implementation, and it creates a fairer playing field for everyone participating. 

7. How to Handle Payments, Fees, and Tax Receipts

Payment Processing 

You should take payments through the platform that you’re using and ensure that they use secure card capture to keep all card and customer details secure. Once the bidding closes, the platform should then charge them automatically. Following this, 501(c)(3) tax receipts should be emailed to the winning bidders within 24 hours. 

The purpose of 501(c)(3) tax receipts is to allow winners to claim deductions on their income tax for a charitable purchase. You will also need to send written acknowledgements for contributions over $250. See step 8 for more details. 

Practical Steps

All cards should be pre-authorized once someone places a bid for the first time. This is a simple process that takes a small amount from the bidder’s account and then refunds it moments later to check that everything is clear and valid. Once the bidding closes, the final charges can be processed, and the full amount will be taken from the card that was registered. 

The platform you use will then send an automatic receipt that shows the amount paid and which part of it is tax-deductible. This is displayed in the form of the winning bid minus the FMV (fair market value).

8. How to Comply with Legal and Tax Requirements

Legal Considerations

It is very important for you to be fully versed in legal and tax requirements before you start your fundraiser. That way, you don’t have to worry about any fines or charges for improper conduct. This also includes state gaming laws that might be applicable to your auction, especially as you may need to justify that you are holding an auction and not a raffle. 

The raffle vs auction situation is very easy to remedy, as a raffle encourages you to buy tickets in the hopes of winning an item, whereas an auction doesn’t charge you unless you have the winning bid. Therefore, auctions do not typically get classed as a form of gambling. However, it is still important to ensure that you’re in compliance with all state laws. 

All nonprofits in the U.S. must comply with state charitable and solicitation rules. Just because you have 501(c)(3) tax status doesn’t mean you are automatically granted the right to raise funds nationally. Most states will actually require you to register and file renewals as a charity before you can legally solicit donations from your bidders. 

It is a requirement to go through IRS reporting for items over $5,000 in FMV. You should also consider a professional appraisal for these items before they are listed. This is both for the IRS and your tax documents, as well as the peace of mind of bidders. 

You will also need to ensure that your donors have the correct tax receipt documentation. This includes their 501(c)(3) tax receipts so that they can list their donation as a deductible expense. If you have qualified sponsorship payments, you will also need to ensure you are registered as a 501(c) tax-exempt organization so that you can keep the funds without paying taxes on them. 

For any bids of $250 or more, the IRS requires a contemporaneous written acknowledgement (CWA) before the donor can claim it as a tax-deductible item. Without it, they cannot use their 501(c)(3) tax receipts. If you are ever unsure with regard to your compliance levels or the correct steps to take, don’t hesitate to contact the state government and the IRS. 

Practical Checklist

In order to be fully prepared for what’s to come, you can use this quick and easy checklist to help you keep on track with the legal side of things: 

• Confirm your 501(c)(3) status
• Register for state charitable solicitation 
• Document FMV for every item over $250 in value 
• Make it clear that you are operating as an auction and not a raffle 
• If you do run a raffle, ensure you are compliant with state gaming laws

9. How to Promote the Online Auction Effectively

Multi-Channel Promotion

Coordination and good PR are the keys to success if you want to run a successful online auction fundraiser. You can use volunteers to help you run it if necessary, and most nonprofit organizations will have a few on hand that can assist. Without a strong social media campaign and regular advertising, you won’t get the reach you need. 

All of your promotion should be coordinated to begin 4-6 weeks before the auction starts, and they should continue throughout its duration. You can’t just stop once the auction starts because you want to keep people engaged and encourage bidders to take a look at the items and see if there are any they would like to buy. 

Social media is going to be huge, and you can reach a massive demographic by utilizing as many platforms as possible. TikTok and YouTube are great for video shorts, and Instagram makes for excellent previews of the upcoming items for auction. Facebook, Twitter, Bluesky, and Snapchat are also strong candidates for spreading the word and sharing your story. 

The best channels to use for promotion include:

• Social media 
• SMS (usually via a newsletter or website signup)
• Website integration 
• Newsletter updates/email updates 
• Paid ads 
• Twitch for livestreaming fundraising
• Save the date advertising campaigns 
• Promotion through a sponsor announcement or supporters 

Practical Tactics

If you want to run a virtual auction fundraiser successfully, you don’t want to overload people with information about the auction or make them feel as though they are being spammed or pressured. That means you need to keep some sort of schedule to ensure the information is getting out there without clogging their feeds. 

Social media posts should be made 2-3 times a week. They should contain previews of the items that are up for auction, and there should be a bidder spotlight during the event. This showcases the top bidders and offers them a shoutout for their contributions so far. SMS notifications should be kept down to a 24-hour reminder for listings. 

With regard to emails, there should only be a few of these sent out. 5-7 tends to be a good number, and this allows you to send out an update on when the bidding starts as well as share more about the story behind your foundation. A great email schedule to set up for your organization is as follows: 

• Announce the auction 
• Item previews 
• Auction starting soon 
• Last calls for the auction 
• Auction closing soon
• Day of the auction announcement 
• Day after the auction recap 

How Long Should an Online Auction Run?

An online auction fundraiser should last between 7 and 14 days. This gives participants plenty of time to view items and build the bidding up while also ensuring it doesn’t drag on for too long. However, you should always ensure that your auctions are in weekend-to-weekend brackets. Starting and ending at the weekend will ensure those fantastic bidding peaks. 

Promote Your Auction with PayBee!

10. How to Manage the Auction While It Is Live

Live Monitoring

While the auction is live, you should make use of volunteers to watch for any questions bidders might have, problems with the items, technical issues, and any disputes that might arise during the bidding window. You will find that most platforms have real-time dashboards that allow you to keep track of everything that’s happening during the auction. 

Practical Process 

Designate one "auction manager" per day. Shared inbox for bidder questions. Mid-auction email at day 4 highlighting hot items. Resolve disputes via platform messaging.

You should have one person designated as the auction manager each day, and they should have access to a shared inbox for all bidder questions. This allows them to work more efficiently and ensures that none of the queries or complaints gets lost in the system. 

On the fourth day of the auction, there should be an email highlighting the hottest items and showcasing the current bids on them. It is also a good idea to showcase some of the items that aren’t performing as well at the bottom of the email. You can label them as ‘hidden gems’ or something similar to create more interest in them. 

If there are any disputes, these should be handled via platform messaging. It is properly moderated, and you will get alerts to let you know when someone has raised a dispute. This also ensures that bidders and organizers have access to a strong support system that can help them if things get hectic. 

11. How to Close the Auction and Fulfill Winning Bids

Close and Fulfillment

Make sure that the auction ends on schedule, and use the platform to ensure the bids are closed at the correct time. Once it has closed, the winners should be charged automatically by the platform, and payments will be taken and processed. This should be a fairly fast process, which gives you time to hand out the proper receipts and prepare for shipping. 

While you should give two weeks for shipping, it’s important to have the items arranged for pickup or shipped within seven days of payment being received. This not only ensures that your bidders trust you (which makes them more likely to return for future events), but it also means you remain as organized as possible. 

Practical Steps

When the auction ends, winners should be notified within one hour so that they are aware their card is being charged and the items will be on the way shortly. For those who don’t pay, you should also have a no-show backup option available. This is where you offer the item to the second-highest bidder after 7 days have passed. 

With regard to shipping, you should make sure that you coordinate the process properly. Some items might be easier for bidders to pick up, and if this is the case, then pickup should be organized for a single event where everyone comes to collect their items. All items that are shipped via mail should have tracking and insurance if they are worth more than $100. 

12. How to Analyze Results and Plan Improvements

Key Metrics

It’s important to look at the metrics after the auction closes so that you can see which areas you need to improve on and where you did well. Some of the key things to watch for are:

• Your total revenue 
• Average bid value 
• Sell-through rate 
• Bidder count 
• Performance for each category 
• Number of new bidders 
• Number of returning bidders (if not your first auction)

Practical Methods: Online Auction Best Practices 

You can use built-in reports to track your metrics as well as export them to a spreadsheet so that you have an external source of reference. Through this, you can compare your year-over-year (YoY) growth by category and with past fundraising events. Even if this is your first online auction, it will be useful in the future. 

The metrics will also show you which items performed well and which ones underperformed, and why that happened. How? It shows you the response to photos, the audience it attracted, and FMV comparisons to help you figure out how you should change things for your next event. It makes an excellent way to plan event sourcing for next time. 

What Metrics Matter Most After an Online Auction?

The sell-through rate, average bid value, and total bidder count are the most important metrics to look at after an online auction. That way, you will be able to predict the performance for next year’s auction. Through this, you can set a benchmark for what you want to achieve and the goalposts you should expect to reach as a result. It’s more accurate than revenue alone. 

PayBee Case Study

Dey Bones Denver hosted a hybrid event for their online auction fundraising in 2023 using PayBee. They were able to raise $45,513 with 154 supporters, and thanks to PayBee, they had a platform that they could use to handle the bidding, communication, and payments. It was a hybrid event, which meant it used a combination of online and live auctioning. 

A quick snapshot of the event reveals how they raised their total funds:

• $18,900 through donations 
• $20,850 through auctions 
• $1,273 through ticketing 
• $4,500 through games

Which 12 Steps Matter Most for Your Online Auction?

If it’s your first time running an online auction, you should focus on steps 1, 2, 4, and 5. This is because your choice of platform, the item sourcing, and the way you design your listings can make or break your first event. 

If you’re repeating an event from last year, then you should focus on steps 9, 11, and 12. The promotion of your event, fulfillment of orders, and a strong YoY analysis will help your event become more established and win at fundraising. 

For those with a small budget, steps 2, 4, and 9 are a massive help. You can pick a free platform, learn to source great items, and promote on multiple channels without paying a cent. For those hosting auction-oriented galas, you should incorporate all 12 steps so that you can build up to the main event and use the online auction as a way to prime your bidders. 

Ready to Launch Your First Online Auction Fundraiser?

Try PayBee for free today. Designed for non-profit online auctions, it has an easy setup for your item catalog, mobile bidding, fulfillment tools, and automated tax receipts in one place. 

Download our 12-step online auction planning checklist and watch it change your fundraiser for the better. 

Frequently Asked Questions

Q1: How do you run a successful online auction fundraiser in 2026?

A: If you want to run a successful auction fundraiser in 2026, there are 12 simple steps you can follow. These steps include:

• Pick a platform that’s non-profit friendly
• Set your revenue goals using SMART
• Source 30-50 high-FMV items (virtual and physical)
• Write a strong listing and use high-quality photos
• Implement bid increments and extended bidding
• Set up secure payments with automated tax receipts
• Comply with state gaming laws and 501(c)(3) rules
• Promote your auction through multiple channels for 4-6 weeks
• Monitor the auction live
• Fulfill winning bids within 7 days
• Analyze your KPIs and metrics to improve year-over-year.

Typically, online auctions run from 7-14 days to ensure there is enough time for participants to place their bods, and the net margins are 30-60& om platforms such as PayBee, Givebutter, and BetterWorld. 

Q2: Which platforms offer the lowest fees for small fundraisers?

A: Zeffy is 100% free with no platform or transaction fees. Givebutter is free with an optional donor tip, and these are the online auction platforms with the lowest costs for small fundraisers. BetterWorld and BiddingOwl have free basic tiers, while PayBee uses event-based pricing that is non-profit friendly with no upfront costs. 

Q3: How long should an online auction run?

A: An online auction should run for 7-14 days, as this is the best time period for performance and maximising the funds you raise. It is long enough to build momentum for the bidding without being so long as to cause bidder fatigue. You should also use weekend-to-weekend methods (Friday until the following Sunday) to help ensure you get bidding peaks. 

Q4: What should you do if an item receives very few or no bids?

A: If there are very few or no bids, lower the starting bid of the item to 20-25% FMV. You should then refresh the photos, rewrite the description, and feature it in your mid-auction email. If there are still no bids, either bundle it with a popular item or save it for next year. 

Q5: Can schools and PTAs run online auctions without special software?

A: Yes, schools and PTAs can use a combination of Google Forms and PayPal, but it’s not recommended. Even the free platforms such as Givebutter and Zeffy include automated bidding, payment processing, and tax receipts. That can save you up to 12 hours of volunteer work at each event compared to doing it manually. 

Q6: How do you handle shipping costs and international bidders?

A: Most online auction fundraisers will limit shipping to areas within the U.S. due to how expensive and risky international shipping can be. It also means that shipping can be charged at a flat rate of $10-$25 per item. If you do open your bidding to international participants, you should limit them to digital or pick-up items and make it explicit within the listings. 

Q7: Are there differences in tax rules for online vs. in-person auctions?

A: No, the tax rules are the same for online and in-person auctions. The winning bidders are able to deduct a set portion of their winning bid above the item's FMV from their income tax. The auction platform needs to issue tax receipts that show the tax-deductible portion. The only difference is that online platforms have digital receipts, and in-person ones are usually physical.