Calling all Charities and Nonprofits: Here is Your Headquarters for Consignment Packages and Fundraising Planning!

Best Practices for Using Consignment in Fundraising

Posted on February 5, 2025

Consignment has become an increasingly popular tool for nonprofits looking to enhance their fundraising events. Organizations can offer high-value, unique experiences or items without taking on significant upfront costs by incorporating consignment items into auctions or raffles. However, using consignment effectively requires strategic planning to maximize its potential benefits. Here are the best practices for incorporating consignment into your next fundraising event.

1. Choose the Right Partner

Selecting a reputable consignment provider is critical. Look for vendors that specialize in nonprofit fundraising and offer items or experiences tailored to your audience. Organizations like Mission First Fundraising specialize in curating exclusive, risk-free travel packages designed specifically for charity auctions. Working with a trusted provider ensures that the items are high quality and that the auction yields a positive return. Consignment Fundraising

2. Understand Your Audience

Tailor consignment items to the interests and demographics of your attendees. Offering experiences or products that resonate with your supporters increases the likelihood of competitive bidding (Frontstream, n.d.). For example, luxury travel experiences may appeal to a gala audience, while sports memorabilia might be more appropriate for a casual event. Researching past auction data can also provide insights into what items perform best with your donors (Charitybuzz, 2023).

3. Set Realistic Starting Bids

The success of a consignment item depends on pricing it appropriately. Starting bids should be set at or above the cost of the item to ensure the nonprofit benefits from every sale. Work with your consignment partner to understand the fair market value and suggested starting points for each item. Pricing strategies should also consider the expected bidding behavior of attendees to maximize revenue.

4. Highlight the Unique Value

Consignment items often stand out because they offer experiences or products that aren’t easily accessible elsewhere. Use marketing materials, social media, and event signage to highlight what makes these items special. For instance, emphasize if an experience is exclusive, once-in-a-lifetime, or VIP. Providing engaging descriptions and professional photos can increase excitement and perceived value (Charitybuzz, 2023).

5. Incorporate Storytelling

If possible, tie the consignment item to a compelling narrative. For example, if auctioning a trip to Tuscany, share a brief story about the unique cultural experiences travelers will encounter or showcase testimonials from past winners (Frontstream, n.d.). Engaging stories can create excitement and increase bids. Highlighting how winning bidders have enjoyed their experiences in the past can also build trust and enthusiasm.

6. Promote Items Before the Event

Build anticipation by previewing consignment items before the event. Use email campaigns, social media posts, or your event website to showcase these offerings. Early promotion can help attendees plan their bidding strategy and come prepared to participate. Online auction previews or early bidding options may also encourage higher engagement.

7. Offer Multiple Opportunities

For highly desirable consignment items, consider offering multiple packages if your consignment provider allows it. This approach can significantly boost revenue, especially if several bidders are competing for the same experience. Allowing more than one winner for a high-demand item ensures that nonprofits maximize their fundraising potential.

8. Leverage Professional Auctioneers

Professional auctioneers can be invaluable when selling consignment items. They know how to engage the audience, create excitement, and drive up bids (National Auctioneers Association, n.d.). Their expertise ensures you maximize the value of each consignment item. Auctioneers also help manage bidding wars effectively, ensuring that nonprofits get the highest possible return on high-value experiences.

9. Monitor Performance

After the event, evaluate the performance of each consignment item. Analyze which items were most popular and provided the greatest return (Charitybuzz, 2023). This data will help refine your strategy for future events. Keeping records of past auction sales allows nonprofits to identify trends and continuously improve their fundraising efforts.

10. Balance Consignment with Donated Items

While consignment can elevate an event, it’s important to maintain a balance with donated items. Donated items often have no associated costs, so they typically generate a higher net return. Use consignment selectively to enhance your offerings without overshadowing donated contributions. A well-balanced auction provides a mix of accessible and high-end items that appeal to a broad range of bidders.

Conclusion

When used thoughtfully, consignment can be a powerful addition to your fundraising toolkit. By choosing the right partner, understanding your audience, and promoting items effectively, you can maximize the revenue potential of consignment while creating memorable experiences for your supporters (Frontstream, n.d.). With these best practices, your organization can elevate its next event and make a greater impact on your mission.

FAQs

How does consignment benefit nonprofit fundraising events?

Consignment allows nonprofits to offer high-value auction items without upfront costs, ensuring they only pay for items that sell. This helps organizations maximize fundraising potential while minimizing financial risk.

What types of consignment items are best for auctions?

The best consignment items are those that align with the interests of attendees. Popular choices include luxury travel experiences, VIP event packages, and exclusive memorabilia, all of which generate excitement and competitive bidding.

How can nonprofits ensure profitability when using consignment?

To ensure profitability, nonprofits should set starting bids above the consignment cost, promote items before the event, and use professional auctioneers to drive bidding. Monitoring past auction performance also helps refine future strategies.

Should consignment items replace donated auction items?

No, consignment should complement donated items, not replace them. Donated items have no cost, generating higher net revenue. A well-balanced auction includes both consignment and donated items to appeal to a wide range of bidders.

Works Cited