“Join us on November 2nd for our annual gala. Guests will enjoy cocktails, dinner, a silent auction, and a live auction while supporting [insert cause here].”

Sound familiar? Probably.

For years, auctions have been a staple of nonprofit fundraising events, so much so that many donors expect them. In fact, the auction model has become so widespread that an entire industry has emerged to support it, from consignment travel packages to auctioneering services.

But is it still the best strategy?

In this article, we’ll explore why many nonprofits are choosing to cancel their auctions, the downsides of including one, and how to take a more strategic approach to fundraising events.

Why Do Nonprofits Include Auctions at Fundraising Events?

There are four traditional reasons nonprofit teams use auctions:

1. Volunteer Engagement
Auctions are an easy assignment for volunteer committees. “Collect auction items” is a familiar, straightforward ask.

2. Additional Revenue
Auctions can bring in incremental revenue, especially from guests who might not otherwise donate but want to walk away with something tangible. (Keep in mind: buyers aren’t always donors.)

3. Event Entertainment
Bidding can energize an event and draw in attendees who are excited about the items.

4. Tradition
Often, auctions are held simply because they’ve always been part of the event. Few stop to ask why.

Six Reasons to Rethink or Cancel Your Auction

1. Auction Requests Burden Local Businesses

Local restaurants and shops are often overwhelmed with donation requests and rarely receive proper recognition for their collective community contributions.

2. Poor Donor Stewardship and Tracking

It’s difficult to properly track and thank both the item donor and the item buyer. This often leads to thanking the wrong person ... or nobody at all.

3. Low Donor Retention from Buyers

An auction buyer isn’t necessarily a donor. They made a transaction, not a philanthropic gift, making them hard to retain or cultivate over time.

Plus, a bad experience with an item (e.g., a misrepresented trip or expired certificate) becomes a donor relations issue.

4. Auctions Drive Misaligned Event Decisions

Venue layout, software requirements, and staffing for auction management can detract from the guest experience and distract from the true fundraising purpose.

5. “Junk” Auctions Dilute the Brand

Unfocused auctions often end up looking like garage sales filled with mismatched or irrelevant items that don’t resonate with guests or enhance your event brand.

6. Time and Resource Drain

Even with volunteer help, auctions consume a significant amount of time that could be better spent inviting new guests, cultivating sponsors, or increasing mission awareness.

How to Approach Auctions More Strategically

If your organization has traditionally relied on auctions, don’t panic. This isn’t about scrapping everything—it’s about being strategic.

✅ Evaluate Your Current Auction

• Is it generating significant revenue (i.e., more than 25% of total event proceeds)?

• Is it a key draw for attendees?

• Do most items sell above fair market value?

If not, it may be time to scale back or cancel entirely.

✅ Focus on Top Performers

Identify your top-performing items—often 5–10 packages drive 80% of auction revenue. Eliminate the rest to save on software, logistics, and time.

✅ Move It Online or Separate from the Event

Shift the auction to a seasonal online campaign (e.g., holiday gift season). Curate it like a retail experience and market it accordingly. This approach can expand reach and improve ROI.

✅ Ditch the Auction, Keep the Fund-a-Need

The Fund-a-Need segment is mission-centered, energizing, and highly effective. You don’t need a full auction to incorporate this. Use paddle raises or QR codes to drive direct donations.

Final Thoughts: Fundraising Habits Are Not Fundraising Strategy

Nonprofit events are opportunities to tell your story, cultivate donors, and build long-term support. But too often, organizations inherit event elements like auctions, raffles, or wine pulls without asking whether they serve the mission.

Your time is too valuable—and your donors too important—to stick with what no longer works.

If your nonprofit has been hosting an auction out of habit, now is the time to reevaluate. Whether you reposition it, downsize it, or cancel it altogether, the goal should be the same: maximize impact and focus on what truly moves your mission forward.