You’ve probably either attended or helped organize an in-person auction at some point, whether live or silent – they’re the bread and butter of some small nonprofits, and common add-ons to special events at larger nonprofits. But have you tried an online auction?
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They offer many advantages, as described in Is a Live, Silent, or Online Auction Best for Your Nonprofit? If your membership is at least 200 people, an online auction stands a good chance of selling out most of its goods and making a good profit.
Here are the basic steps to holding an online auction:
- Choose a vendor. You’ll need to go through an auction site such as Auctria, Charity Auctions Today, or BiddingForGood. For a per-auction or annual fee and/or a transaction commission, they make it easy for you to display your items, then allow bidders to register, enter credit card information (which means guaranteed payment for you from the winning bidders, but also a separate credit card processing fee), and place bids within a set period of time. The ideal auction length tends to be one to three weeks, after which the site collects the payments and transfers the total to you. Compare their service offerings with regard to price, ease of posting, quality of interactions with bidders (for example, some sites will send out “bid alerts” telling people when they’ve been outbid on or won an item) and so on. Your nonprofit is in charge of actually shipping the goods to the winning bidders.
- Solicit goods. The whole reason auctions work as a fundraising concept is that you don’t pay for the goods being auctioned off. Instead, you solicit these from local merchants, your board members and volunteers, and so forth. Nearly anything that isn’t used, tacky, or too unusual to attract a wide audience may make a good auction item, from vacation packages to craft items to gift certificates for massage and other services to parties at a board member’s home or yacht. When you’re close to the auction date, ask businesses such as theaters and sporting venues whether they have last-minute extra tickets to donate. Because of the quick turnaround time, it’s usually easier to incorporate such gifts into an online auction than other auction types. In general, however, having a committee of volunteers begin soliciting items three to six months before the auction is optimal.
- Decide when enough is enough. Since you’re not limited by time or display space, you can bring in as many items as you think you can feasibly sell, handle, store, and ship. Set a realistic fundraising goal based on these limitations and the size and financial capacity of your membership.
- Collect or take photos. You will need one or more photos of every item for an online auction. In fact, multiple photos are best, as you know from your own online shopping experience; but some sites charge more if you want to display more than one photo per item.
- Determine fair market values. Be sure to ask the merchants or donors for value estimates, which you’ll need in order to set starting bids (described next) and to tell bidders for tax purposes. See Tax Deductions for Charitable Giving for more information.
- Set starting bid amounts. You’ll need to set minimum bids for your online auction, usually in simple amounts like $2, $5, $10, or $20. It’s best to set these at amounts between 25% and 50% of each item’s market value. That helps avoid creating the impression that your auction is a mere feast for bargain hunters. It also helps avoid insulting the goods’ donors, who may ask or find out the selling prices later. Start higher (75% or so) on items that are essentially cash equivalents, such as gift certificates for grocery stores or restaurants. Base the increments on the items’ value, with the goal of reaching its market value or your realistically hoped-for amount within three bids. You may also set a top-end amount (called a “guaranteed” or “buy-now” bid) that lets the person forestall other bids and declare themselves the winner. Of course, you’d set a high figure—typically 150% of the market value.
- Let people know about the auction. People rarely visit auction sites without having a particular charity in mind to support. You’ll need to promote it, both before and during. Your newsletter, website, and social media pages are all good ways to do this. Encourage shares!
- Present goods in an attractive light to bidders. This means not only supplying good photos, but writing up enticing yet accurate descriptions. Don’t get so caught up in playing marketer that you forget to provide basic information such as size, measurements, contents, applicable dates, washing instructions, and the like. And the titles of items should definitely be descriptive (for search purposes) rather than cutesy or full of puns.
- Hold the auction. Here’s where it should get exciting. The highest volume of bidding will happen during the first 48 hours. Don’t hesitate to monitor the bidding and post interesting news on via email or on your Facebook or other social media page, and encourage people to keep bidding right up until the end. Don’t worry about over-emailing—the “game” aspect of auctions means that most people regard these emails as less intrusive than the average email missive.
- Arrange for delivery or shipping. If these are coming straight from a merchant, you may be able to simply pay the shipping cost or warn bidders that they must pay for shipping, and then reimburse the merchant. In other cases, you’ll need volunteers to get the items safely sent or delivered to the recipients. Because international shipping can be a bother, many nonprofits limit bidding to people within the United States.
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For more detailed information on online and other types of fundraising auctions and events, see The Volunteers' Guide to Fundraising; Raise Money for Your School, Team, Library or Community Group (Nolo).
Live, silent, and online auctions have become favorite fundraising methods for many nonprofits. And today, there are sophisticated software systems to help make those auctions efficient and more fun.
Reliable auction software can and should perform a number of tasks quickly and efficiently. For live or silent auctions, those functions include tracking complex information, such as items up for sale, the fair market value of each, and selling prices. Such systems will also need to produce bills and receipts during the event within minutes.
For online auctions, nonprofits may want to use an existing platform such as eBay for Charity with a built-in audience or a system that caters to a specific audience—usually friends of the organization. In any case, systems must be adaptable, customizable, and sturdy.
When shopping for fundraising software and systems, pricing may not always be transparent.
Some questions to ask include:
- How much for various packages and add-ons?
- Are there separate fees or does the company take a percentage of sales?
- Is there a contract, and if so, for how long?
- What are the credit card fees both swiped and manually entered?
- And is there an early termination fee?
Systems That Integrate Online and Offline Auctions
1. Greater Giving Event: This is a package of three processes: Online Payments, Auctionpay, and Greater Giving Event Software. Greater Giving Online Bidding can be added.
Pros
- Brings mobile bidding to live and silent auction events when used with the online bidding add-on
- Can be integrated with offline silent bidding when info sheets are printed out and distributed
- Can be used alongside gavel bidding by providing a preview of items to be gaveled
- Pre-registers guests
- Allows pre-bidding and bidding from anywhere
- Sends alerts so bidders know when they have been outbid
- Features 'buy it now' capability
- Stores guest payment information, providing a quick and efficient checkout process
- Tracks, displays, and announces results in real time
Cons
- Pricing depends on package purchased plus any add-ons
- No pricing information is available on the website
- Could be too complicated for small nonprofits and some volunteers
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2. ReadySetAuction: This auction program says that it is a “one-stop, cloud-based auction software solution for your silent, live, mobile, and online fundraiser auctions.”
Pros
- Excellent guest management, including tracking RSVPs, table assignments, meal choices, etc.
- Item tracking by donor and type, including services, in-kind gifts, consignments, sponsorships, and cash contributions
- Printed catalog and bid sheets that can be branded
- Online ticket and sponsorship sales, mobile bidding during the event, online bidding before and after an event
- Full-featured cashiering, including check-in, check-out, and receipts, plus low-cost credit card processing
- A wide range of reports that are easy to generate and store
- Transparent pricing: Three programs range from $1,099 to $1,999
Cons
- Just one hour of training is included for up to 25 people with additional time available for a fee
- Telephone support costs extra
Tools for Online Auctions
1. eBay for Charity: The eBay charity auction platform gives nonprofits the ability to fundraise on the vast and popular online auction site. Listings are open to anyone who searches eBay, a potentially huge audience.
eBay for Charity has two kinds of charitable auction options. The first is “Community Selling” which allows anyone who sells an item to donate a portion of the proceeds to a chosen charity. Working through PayPal Giving, the seller receives some rebate of listing fees and gets a tax deduction for the donation. Charities can also benefit from this program by encouraging their supporters who sell on eBay to use this option.
The “Direct Selling” option allows a charity to sell its own items. The charity gets all of the income and a 100 percent credit for PayPal processing fees. This option can benefit a charity directly by selling items, either intermittently or continually.
Pros
- A branded page allows visitors to donate directly
- Potentially substantial existing audience
- Full credit for processing fees
- Easy sign-up procedure
- Ability to run an auction continuously
- Simple order processing and the ability to communicate with buyers
Cons
- Not especially useful for one-time or recurring events such as an auction connected with a gala
- Organizations must be IRS-registered as 501c3
- Must drive supporters to the site by advertising and marketing
2. CharityBuzz seems to be the belle of the ball when it comes to online charity auctions. From its “buzz-worthy” website to its love of experiences (check out the celebrity and travel emphasis), this service doesn’t look like your grandfather’s charity auction.
CharityBuzz is part of the Charity Network, recognized for innovation by Fast Company in 2017. For edgy non-profits and those appealing to a new generation of donors, CharityBuzz might be worth a look.
Pros
- Emphasis on planning, speed, and results
- Payment within 30 days
Cons
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- Little specific information is readily available on the websiteAdobe Acrobat Reader DC software is the free global standard for reliably viewing, printing, and commenting on PDF documents. And now, it's connected to the Adobe Document Cloud − making it easier than ever to work across computers and mobile devices. Adobe reader free download.
- Pricing based on a percentage of net proceeds with CharityBuzz receiving 20 percent
- Best suited for charities targeting high-end donors
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3. BiddingForGood has been around for a long time and continues to be popular, especially with smaller non-profits and schools. That may be due to its affordability and flexibility.
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Event management and auction management are at the heart of Bidding for Good’s several products. The platform seems stable, and the company is known for excellent support.
Pros
- Several products available at various price points
- Unlimited auctions allowed
- Access to an ongoing online auction site helps tap a broader potential audience
- Mobile bidding
- Event registration
- User-friendly systems
- Support available
Cons
- Detailed pricing and feature information not provided on the website
- 9-percent fee on auction proceeds raised online
- 3.8-percent credit card processing fee
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4. Canadian-based Auctria is another very affordable product. There are five plans, starting with free (one event, 30 items) and proceeding to $349 for a Platinum Plan. The pricing is based on a yearly subscription. Credit card fees depend on the program level and run from 0.5 percent to 0.2 percent.
Pros
- Procurement tracking
- Bidder automation
- Collection of payments, donations, ticket and product sales, print and email receipts
- Pricing transparency (most information available on the website)
- Excellent user support
Cons
- Limitations on number of itemsThis chess AI has multiple modes of being a chess tutor or even a professional model. Free board games download for pc. Download it here from here.4 Sudoku Classic!If you are looking to spend some quiet time stimulating and challenging your brain and trivia, then this classic Sudoku will fit the bills. Chess Free is probably the best online Chess games available for free. Just lift your legs and relax with this massively fun board game on.
- Limitations on number of events
- Limitations on dollar amount processed
3 More Low-Cost Auction Apps
1. GiveSmart is a full-service auction product offering everything from silent to live and online auction support. Pricing is variable based on the needs of the client. You’ll have to contact them for a consultation.
2. WinningCause specializes in online and mobile silent auctions. It calls itself “better than free” because you can earn a cash back bonus. The product allows mobile bidding, unlimited items, and unlimited bidders. More info can be found at the site and Capterra.
3. 32Auctionsspecializes in silent auctions, taking them online and live or integrating the two types. Choose the feature you want with a quick chart and find out the cost right on the website. Prices range from free to over $200. Custom packages are available as well.
These auction apps, programs, and companies are certainly not the only ones on the market today. No matter your organization’s needs or budget, you’re bound to find just the right combination of services to take your auctions to the next level.
But pick your way carefully through features, pricing, and ease-of-use. Keep in mind that your volunteers will need to use whatever system you choose. Make sure that the software makes everything as comfortable as possible.