Silent auctions need rules. Without them, events would be chaos, and participants would feel as if they aren’t in an environment where it’s safe and secure to place bids on the items they’re hoping to take home.
On the flip side, though, having clear and defined silent auction rules can elevate your event and measurably increase the revenue your fundraiser brings in. When bidders understand how to bid, where to bid, and what the silent auction process allows, they can relax, get their competitive juices flowing, and enjoy the thrill of trying to secure the items they want most.
But what sort of rules and silent auction guidelines work best? You’ve come to the right place. In this guide, you’ll find the:
- Importance of silent auction rules
- Types of silent auction rules
- How to implement those rules
- Printable silent auction rule book
What Are Silent Auction Rules & Why Are They Important?
Having firmly established silent auction rules is vital for everyone involved in your fundraiser. From organizers to volunteers to participants, clearly defined silent auction guidelines and rules prevent conflict and misunderstandings, keep the event running smoothly, and create an even playing field for bidders.
With the right rules in place, your silent auction will be fun, engaging, and successful, too.
Rules can:
- Create fairness and transparency
- Prevent foul play
- Ensure legal and tax compliance
- Improve the experiences for participants
- Set expectations
Types of Silent Auction Rules
When we talk about silent auction rules that can make a huge difference, we can generally divide them into several categories.
- Registration rules: Getting guests and participants registered before they bid keeps silent auctions organized. Registration also offers an opportunity to articulate all of the other rules.
- Rules about the items that are available: Organizers have an obligation to bidders to be clear about what items will be up for auction, what their value is, and prove that they’re authentic.
- Rules about the bidding process: Different silent auctions may have different guidelines for how much and how little a bid can be and how those bids are logged. Bidders should know exactly how the process works.
- Rules on legality: It’s important to understand your province or state’s legal framework. Everything from age restrictions to the risks and hazards associated with items must be clear.
- Start and end time rules: Participants in a silent auction need to know when they can start bidding and, just as importantly, when they must make their final bids.
- Checkout procedure rules: Clearly defining how and when bidders must pay for the items they’ve won is critical in avoiding confusion and even conflict when it comes time to collect.
10 Silent Auction Rules for Successful Fundraising
1. Firm Beginning & End Times
What it’s about: Bidders should know exactly when the auction begins and where it ends so they can plan accordingly. They should also know when time is running down and when they need to get their final bids in.
Why it matters: Bidding often increases in the final hours or even minutes of a silent auction as participants try to secure the items they want most. Having a firm end time helps build a sense of urgency and provides the opportunity to make final bids. If you want to extend your auction to maximize bidding in the final minutes, be sure to clearly communicate that with your audience first.
What it looks like: The Ottawa Art Gallery held an art auction in 2022. While bidding opened when the event started, it was clearly communicated that the silent auction would remain open throughout the following weekend.
The event raised nearly $62,000. Mobile bidding apps like Bid Beacon make it easy to communicate clearly when a silent auction begins and ends.
2. Minimum Bid Increments
What it’s about: The organizer can decide the minimum bid, but establishing minimum bids is an important silent auction rule that can drive up the price of an item.
Why it matters: Minimum bid increments are an important rule because they provide structure, simplify bidding, and ensure that each bid raises an item’s total by a meaningful amount. This helps to maximize the amount raised per item within your silent auction!
What it looks like: Minimum bid increments should be clearly stated for each item. Using a mobile bidding platform like Bid Beacon makes implementing minimum bids easy, too. Every auction will be different, so there’s no one right answer. Depending on the value of each item, bid increments can range from $5 to $25 or more. Consider the quality of each item and your silent auction goals to determine appropriate bid increments.
3. Establish Item Authenticity
What it’s about: Bidders deserve to know that the items they’re bidding on are authentic if they’re going to feel comfortable spending their money. Provide certificates of authenticity and clearly present the fair market value of each item.
Why it matters: Nobody wants to buy a piece of forged or stolen artwork or a piece of autographed sports memorabilia that isn’t authentic. Proving the items are worth bidding on and that there are no legal issues to worry about will make participants comfortable to place more bids.
What it looks like: Bid Beacon allows guests to browse items before a silent auction goes live. That includes high-res photos of each item, and certificates of authenticity can be uploaded, too.
4. All Sales Are Final
What it’s about: The last thing organizers of a silent auction want is for bidders who later have buyer’s remorse to come back and try to return their items. To avoid confusion, make it clear that all sales are final.
Why it matters: It prevents confusion and complaints when your silent auction is over. Bidders understand that if they win an item, it’s theirs, and they cannot reconsider the next day, next week…or ever.
What it looks like: It is common in almost every silent auction to state clearly that all sales are final. In Bid Beacon, fundraisers can include this statement when creating a silent auction so it’s visible to everyone who joins.
5. Establish Reserve Prices on Items
What it’s about: Also referred to as a reservation price, this is one of the often overlooked silent auction rules. When setting a reserve amount on an item, that item can only be declared as won if the highest bid is greater than or equal to the reserve price.
Why it matters: Not every item in a silent auction will need a reserve price, but when looking at best practices and silent auction guidelines, it’s encouraged to set reservation amounts on higher-valued items. This guarantees that your organization receives fair value on all items, and if a reserve price isn’t met, the item doesn’t sell.
What it looks like: With Bid Beacon, a reserve amount can be set on each item, giving admins full control over how they want to manage their event. To avoid confusion, guests will see when an item has a reserve price set, they just won’t know what the actual amount is. At any point during or after the auction, the organization can lift the reserve price and sell the item for the highest bid.
6. Bidders Need to Register
What it’s about: This might seem self-explanatory, but it’s an important silent auction rule that participants must register before bidding. Mobile bidding helps with this, but organizers will want participants’ contact details and how to get in touch with them once the silent auction ends.
Why it matters: It ensures that the people who are bidding on items are real and intend on actually claiming the items, thereby preventing fake bids that might drive up prices. By having everyone register, you also build a mailing list that can be used to promote future fundraising events!
What it looks like: When using a mobile bidding platform like Bid Beacon, guests cannot place bids unless registered for the silent auction. This means that as guests join your auction, you will be simultaneously building a mailing list to use for future events. Bid Beacon also gives organizations an easy way to invite registered guests from any of their previous silent auctions, making it effortless to re-engage past supporters.
7. Have Clear Payment Methods
What it’s about: Make sure bidders know how they will be able to pay once the auction is over and they’ve logged winning bids.
Why it matters: Keeping the payment process simple and straightforward will make it easier for everyone. If you’re only accepting payment through credit card or cash transfer, make sure bidders know in advance so they can pay for the item they’ve won without any confusion.
What it looks like: Bid Beacon supports various payment collection methods to give organizations ultimate flexibility. However payment is collected, the organization can include payment and pickup instructions that are made available within the silent auction. Item winners will also receive an email reminding them of those instructions to help create a smooth auction closeout.
8. Payment Made at Auction’s End
What it’s about: Some fundraisers do allow for deferred payment, but it’s best to insist that payment for items be made as soon as the auction is over.
Why it matters: Having bidders pay for the items they’ve won as soon as the silent auction ends ensures that organizers won’t have to chase down payment, while reducing the likelihood of encountering individuals with buyer’s remorse.
What it looks like: Bid Beacon gives organizations the power of choice when it comes to collecting payments. Some of the supported payment methods offer an immediate pay option that requires guests to enter a credit card prior to bidding, and then auto-charges winning bids at the end. An option like this can significantly streamline the closeout of an auction and reduce the chance of encountering anyone with buyer’s remorse.
9. Prohibit Changes to Bids
What it’s about: One of the most important silent auction rules is that once a bid has been placed, it’s official and cannot be removed or changed.
Why it matters: This rule ensures the integrity of the auction. Bidders should be taking it seriously, and if guests know they can freely place bids and have them later removed, it can set a bad precedent. To avoid this, making it clear that bids are final will ensure that guests are committed to paying if they end up winning.
What it looks like: While Bid Beacon does allow administrators to delete bids, this should only be used when bids are accidentally placed. It’s important to be clear in advance that bids cannot be changed or removed just because a bidder reconsiders.
10. Use a Mobile Bidding Platform
What it’s about: Mobile bidding platforms make life easier for organizers and participants alike at silent auctions.
Why it matters: Mobile bidding simplifies the silent auction process. Attendees can receive notifications if they’ve been outbid, registration can be taken care of beforehand, and bidders can even get detailed, advanced looks at the items that will be available.
What it looks like: Mobile bidding platforms like Bid Beacon have a proven track record of increasing the funds raised at silent auctions and engaging guests. We have helped with over 2,000 silent auctions and make mobile bidding fun and engaging for everyone involved.
Silent Auction Rules Guide (Free Download)
Running a silent auction gives organizers a lot to think about, so download our Printable Silent Auction Rules Guide to help you keep track of everything you need to make your event run smoothly and raise as much money as possible.
Our rules guide also makes life easier for bidders, as they can easily reference it to ensure they understand the guidelines they need to follow to secure the items they want.
Want to go paperless? Bid Beacon makes it easy to set rules without ever printing a sheet of paper. Organizers can inform participants of the rules through their smartphones, making them easy to reference without printing a single sheet.
Ramp Up Silent Auction Success with Bid Beacon
Mobile bidding with Bid Beacon makes silent auctions more convenient and increases engagement. Instead of waiting around close to a bid sheet, guests can receive notifications directly on their phones when someone has outbid them, and then they can quickly and conveniently increase their bid. This gets the competitive juices flowing and can even start a bidding war.
Bid Beacon has supported over 2,300 causes and helped raise more than $30 million in funds while selling 135,732 items.
To find out more about how Bid Beacon can help your next successful silent auction, e-mail us at [email protected] or fill out our contact form.
