Auction for Fundraising
Fundraising Auction: An auction did for charity in which items are sold to the highest bidder and the collected money is used to fundraise a project/venture.
These are basically conducted by non-profit organizations (NGOs).
Any organization can host a charity fundraising auction for health charity, schools, orphanages, disaster victims, etc.
Let’s discuss the different types of Auction Business Models and then we’ll move to different kinds of charity auctions.
⠀⠀⠀⠀⠀⠀
Auction Business Models
There are specifically three kinds of Auction Business Models, dropping them below:
Reserve Price Auction System
The merchant sets a hidden minimum amount to which he wishes to sell the product for the least.
In other words, the merchant will only sell the particular item if the bidding amount meets or exceeds the reserve price set by him.
Buy It Now (Fixed Price) Auction System
In BIN (Buy It Now) auction system, the merchant enables the option of ‘Buy Now’ with the product price.
So, if in case, some bidder wants to buy the product on the actual product price instead of bidding on it, he can do that.
This kind is basically in the inclination of both the merchant and the bidder (Buyer).
Proxy Bidding Auction System
Proxy Bidding is a concept in which the system automatically bids on proxy bidder’s behalf up to the maximum bid amount that he has chosen.
This is simple to make the online auction process much easier and less time-consuming. Also, the identity of the proxy bidder remains confidential until the end of the auction.
Proxy Bid is the Maximum Bid and not the Current Bid.
⠀⠀⠀⠀
Kinds of Charity Auctions
Have a look at the three kinds:
Silent Auction
Silent auctions take place at a given venue (like live auctions but not exactly them). All the bidders have to be present physically at the location.
The items on auction are displayed and the bidders can go around checking the items which interest them.
The bidders need to write down their bid on a slip of paper (known as bid sheets: the traditional way). Bids are not revealed until the end of the auction.
This is an exciting & engaging event where bidders communicate with each other and on the other hand bidding on items they wish to win.
Later to make silent auctions less chaotic and easier, the auctioneers started a concept of auction mobile software.
Any software which allows you to display your auction product online with a medium to let your bidders bid online.
This way they can check out the auction products physically as well as bid for them online without any hassle.
This concept in silent auction basically depicts the amalgamation of an online as well as an offline/live auction.
Looking for an auction software?
Bidders write their bids on bid sheets in a silent auction
Live Auction
Live auctions are just like the silent auctions which are required to be organized physically/geographically. One need to set up a whole venue, bidders need to be present to bid.
The only difference is, in live auctions, the merchant himself calls out the auction items and takes the bids. The bidders need to call out to place their bids.
This is the traditional way of bidding but it has many drawbacks like the two major ones are location and time constraint. This gave birth to online auctions.
Bidders pitching their bids in a live auction
Online Auction
This is the most widely accepted & easily hosted kind of auction. Virtual or online auctions remove the time and geographical constraint.
Moreover, it lets you reach a humongous amount of audience from all over the world.
Online auctions are exciting as they let the participants make bids at the moment with the pressure from a seller/auctioneer, their companions, and their own urge to win the auction.
Online auctions will let you boost your revenue a lot more than the silent or live auctions.
Bidders can bid any time from anywhere in an online auction
The Bottom Line:
Since launching a charity fundraising auction is not easy as it requires things to be systematic as well as you need the right tools to make it deliver good output.
The best way to go is to build an online fundraising auction website which will help you cover a large audience with the highest bids possible. Also, online auctions are easy to launch & promote!
Want to know how to launch an online auction website?
If you have suggestions to make something better, do let us know.
In case of any issue or suggestion, create a ticket at Webkul UV desk.
⠀⠀⠀⠀⠀⠀⠀⠀
Until next time. 👋