Sponsored by Galabid – the leading fundraising platform for silent auctions, raffles, donation drives, event ticketing, and crowdfunding.

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Many fundraising teams face the same challenge: they don’t have enough auction items. This is becoming a particular problem in today’s economic climate where businesses are less able to support or donate auction or raffle items.

This is one reason consignment auction items have become increasingly popular. By providing access to premium experiences and high-value auction packages without upfront costs, consignment can help organizations build stronger auction catalogs, attract more bidders and reduce the burden on staff and volunteers.

However, not all consignment programs are structured the same way.

Before adding third-party auction items to your next fundraiser, here are eight important things every nonprofit should know.

1) Understand What “Consignment” Actually Means

A consignment item is supplied by a third-party provider rather than donated directly to your organisation.

If the item sells, the provider receives an agreed amount and the charity retains the remaining proceeds. If the item does not sell, the item is returned.

Common consignment items include:

• Travel experiences
• Holiday accommodation
• Live sports and entertainment packages
• Dining experiences
• Luxury lifestyle items
• Sporting and entertainment memorabilia 

For nonprofits, consignment can provide access to auction items that would otherwise be difficult or impossible to source locally.

The key is understanding exactly how the financial arrangement works before adding items to your catalogue.

2) Not All Consignment Models Are Created Equal

One of the biggest challenges for fundraisers is understanding how the proceeds are split between the cause and the item providers. 

In reality, several different approaches exist.

Fixed Cost Model

The provider sets a fixed amount they must receive if the item sells.

For example:

• An exclusive dining experience for 10 people sells for $2,500 at a silent auction
• The provider receives the fixed cost price of $1,500
• and the nonprofit retains: $1,000

This model is simple, but the charity’s profit can vary significantly depending on bidding activity.

Revenue Share Model

The cause receives an agreed percentage of the final selling price.

For Example:

• A luxury holiday package sells for $4,000 at auction. 
• The charity donation is 25% ($1,000).
• The consignment provider receives 75% of the final selling price ($3,000) to cover the cost of the item and their profit margin.

This can work well for low-priced items, but be very mindful of having too many high priced items with lots of high bids (the cause won’t be receiving the lion’s share of the returns). 

Guaranteed Profit Model

Some providers guarantee that the charity receives a minimum profit if the item sells.

For example:

Example:

• A travel package is listed with a guaranteed charity profit of $500. 
• If the item sells for $3,500, the provider receives their agreed amount and the charity receives at least $500. 
• If bidding exceeds expectations and the item sells for $4,500, the charity may keep the guaranteed profit plus some or all of the additional amount, depending on the provider’s terms.

This provides greater certainty when forecasting fundraising outcomes and can reduce financial risk for organisers.

Understanding which model you’re using is essential before promoting any item to supporters.

3) Consignment Items Can Expand Your Auction Catalog Quickly

A limited catalog can reduce bidder engagement and restrict fundraising potential.

A general guideline is to think about providing the right number of items to match the number of bidders and the range of interests and budgets.

Consignment providers can help fill gaps in an auction catalog without requiring weeks of additional donor outreach.

This can be particularly valuable for fundraising that’s reliant on volunteers, such as:

• School fundraising events
• Community fundraisers
• PTA fundraisers
• Grassroots sports clubs
• Fundraisers organized by individuals

4) Quality May Matter More Than Quantity

Adding dozens of consignment items does not automatically lead to better results.

Great auction fundraising performance depends on relevance, perceived value and audience fit.

Before adding a consignment item, ask:

• Would our supporters genuinely want this?
• Is the experience easy to understand?
• Does the item align with our audience demographics?
• Is the value proposition clear?

A carefully curated catalog often outperforms a larger catalog filled with items that generate little interest.

The best consignment providers work with nonprofits to identify experiences that match their supporter base rather than simply offering the largest possible inventory.

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GalaBid helps nonprofits, schools, charities and community organizations run online and in-person auctions, raffles, donation campaigns and fundraising events. Through GalaBid’s no-risk auction program, organizations can access hundreds of premium consignment experiences and items with no upfront cost and guaranteed profits on sold items.

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5) Pay Close Attention to Terms and Conditions

One of the most important due diligence steps is reviewing the redemption conditions attached to each item.

Questions worth asking include:

• How does the booking process work?
• Are there blackout dates?
• How long is the redemption period?
• Are flights included?
• Are taxes or fees payable?
• Are there booking restrictions?
• Can the experience be transferred?

Unexpected restrictions can create disappointment for winning bidders and additional administrative work for fundraising teams.

Transparency before the fundraising event helps avoid problems later.

6) Consider the Supporter Experience

Fundraising success isn’t just about revenue.

It’s also about creating positive experiences that encourage supporters to participate again.

Winning bidders should feel excited about what they’ve purchased and confident that the redemption process will be straightforward.

This is why many organizations favour providers that offer:

• Digital catalogs with clear item descriptions and images 
• Professional fulfilment
• Responsive customer service
• Simple redemption processes

It’s important that bidders can easily understand whether an item includes a supplier cost and how much of the final sale price will support the charity.

A great auction experience can strengthen donor engagement long after the event has ended. A poor experience can have the opposite effect.

7) The Best Consignment Programs Reduce Risk

One reason consignment continues to grow in popularity is that it can reduce risk for nonprofits.

Traditional auction procurement often involves significant uncertainty. Teams invest time sourcing items without knowing how much interest they will generate.

Well-structured consignment programs can help reduce that uncertainty by offering:

• No upfront purchasing costs
• No payment required for unsold items
• Guaranteed profits on sold items
• Access to professionally managed experiences
• Reduced volunteer workload

For organizations with limited fundraising resources, this can make a meaningful difference.

8) Consider How Consignment Items Integrate with Your Fundraising Platform

Not all consignment providers offer the same level of integration with modern fundraising technology.

Traditionally, auction items and fundraising software have been managed separately, creating additional administrative work for organizers. Item information often needs to be manually entered into auction systems, while reporting and fulfillment are handled through separate processes.

Increasingly, nonprofits are choosing providers that combine Items on Consignment (IOC) with digital fundraising tools that facilitate: :

• Silent auctions
• Live auctions
• Raffles
• Event ticketing

When auction items can be added directly to a fundraising platform, organizers may save significant time while creating a more seamless experience for bidders and donors.

Integrated solutions can also provide advantages such as:

• Faster event setup
• Consistent item descriptions and images
• Simplified reporting
• Centralised payment processing
• Reduced volunteer workload

For busy fundraising teams, particularly those relying on volunteers, the ability to manage auction items and fundraising activities from a single platform can help streamline event delivery and improve the overall supporter experience.

The Bottom Line

Obviously, consignment auction items are not necessarily a replacement for donated prizes. In many cases, the strongest fundraising auctions combine both.

Donated items often provide the best return, local relevance and community engagement. Consignment items can add premium experiences, broaden catalog appeal and help fill gaps when donated inventory is limited.

Knowing your audience and curating a catalog that will work for them is essential 

Understand the consignment provider’s pricing model, redemption process and profit structure before adding items to your auction.

For nonprofits that choose carefully, consignment can be a practical way to strengthen fundraising results while reducing the burden on staff and volunteers.