In a charity auction the winning payment benefits a cause that is presumably valued by the bidder as well as competing bidders. Thus, the bidder receives a benefit from his own payment – both the item won and the value the donation supports the organization – and other bidders do as well, as their charity is supported.
How does a charity silent auction work?
During a silent auction, bids are written on a sheet of paper that is commonly placed before or next to the item. At the predetermined end of the auction, the highest listed bidder wins the item. This auction is often used in charity events, with many items auctioned simultaneously and closed at a common finish time.
How long should an auction last?
In a traditional live auction setting, excluding real estate, auctioneers typically take 20 seconds to 2 minutes to sell lots. Items might be sold more quickly if: The bidders are professional buyers. The relative value of the items is well known and established.
Are silent auctions illegal?
Since charity auctions are considered “sales of goods” – not “gambling” – there are no new compliance obligations under Article IV, Section 19. And theres no other law in California that specifically prohibits live or silent auctions.