The Ultimate Guide: Should Your Nonprofit Use Consignment Sales?

Fundraising events are critical for nonprofit organizations and charities to secure funding for their missions. Traditional methods such as ticket sales, donations, and auctions remain staples in these events. However, many organizations are discovering the benefits of adding a fundraising consignment sale to their overall charity fundraising strategies, allowing them to offer high-value consignment auction items without the burden of upfront costs. By partnering with a consignment provider (or consignors), nonprofits can present auction packages, exclusive experiences, and luxury goods that drive excitement, attract bids, and significantly boost revenue.

What Are Consignment Sales?

Consignment sales allow nonprofits to auction or sell items—often referred to as consigned items—provided by a third party who sets a reserve price, also called a minimum bid. The organization auctions these items through a silent auction, online auction, live consignment auction, or even during a raffle, and retains a portion of the sales proceeds above the reserve price. This arrangement eliminates financial risk for the organization, as any unsold items can be returned to the consignors (Heyman 124).

According to Darian Rodriguez Heyman, author of Nonprofit Fundraising 101, consignment sales are a low-risk way for charities to access premium items they might not otherwise afford (124). For nonprofits with limited resources, this model provides an opportunity to procure unique items—luxury vacations, celebrity or sports items memorabilia, and fine art—that entice donors and encourage bidding.

The Benefits of Consignment Sales at Fundraising Events

Incorporating consignment sales into a fundraiser can increase revenue potential in several ways:

1. No Upfront Costs: Many auction consignment arrangements do not require upfront payment, which minimizes financial risk. This allows nonprofits to offer high-value items without the burden of purchasing them in advance (Weinstein 74).

2. Exclusive and High-Value Items: Consignment providers often specialize in consignment auction experiences, from luxury travel packages to one-of-a-kind memorabilia. The presence of these high-value items can drive more competitive bidding, which leads to higher revenue.

3. Broader Appeal: Consignment items allow organizations to cater to a variety of interests and attract a broader audience. Supporters may be drawn to luxury items, adventure packages, or rare collectibles they would not find elsewhere.

4. Increased Donor Engagement: Unique, exclusive auction packages can make fundraising events more memorable, leading to increased donor engagement and participation in future events. This enhanced experience often leads to greater loyalty and longer-term support (Greater Giving “Consignment Strategies”).

Ideal Consignment Items for Fundraising Events

To maximize the success of a popular auction or gala, it is essential to choose items that align with the audience’s interests. Some of the most successful consignment items include:

• Travel and Experience Packages: Getaways, guided tours, and all-inclusive trips are popular because of their uniqueness and exclusivity. Many consignment vendors, such as Mission First Fundraising, curate travel experiences designed specifically for charity events!

• Luxury Goods: High-end items such as jewelry, art, and designer goods cater to affluent donors and often yield higher bids. Donated items like autographed sports items or music collectibles also attract niche collectors who seek valuables at or above fair market value.

• Adventure Experiences: Thrill-based experiences—like hot-air ballooning, skydiving, or race car driving—appeal to adventurous attendees and help diversify auction offerings (Greater Giving “Auction Item Ideas”).

Best Practices for Implementing Consignment Sales

Successfully integrating a consignment auction into your event requires planning and strategy:

1. Select a Reliable Provider: Choose a reputable consignment provider with experience in charity fundraising. Companies like Mission First Fundraising specialize in curating consignment auction items for nonprofits, making it easy to find items that resonate with your audience.

2. Promote Consignment Items Ahead of Time: Providing previews of consigned items before the event can create excitement. Charity auction software providers like Greater Giving recommend emailing attendees or sharing on social media to maximize interest (Greater Giving “Promoting Auction Items”).

3. Use the Right Sales Format: Consignment items work well in both silent and live auctions, as well as in an online auction format. Professional auctioneers can add excitement, especially for high-value items (Heyman 128).

4. Leverage Mobile Bidding Technology: Platforms such as OneCause and Handbid allow attendees to place bids from their smartphones, increasing convenience and providing real-time updates. This can drive higher final bids (OneCause “Benefits of Mobile Bidding”).

Potential Challenges and How to Address Them

While consignment sales can significantly enhance revenue, there are potential risks to keep in mind:

1. Setting Appropriate Minimum Bids: Overpricing items can lead to unsold inventory, reducing revenue. Setting a realistic reserve price that reflects market interest while ensuring profitability is essential (Heyman 130).

2. Choosing Items Aligned with Attendee Preferences: Items that do not match your donor base may fail to attract interest. Organizations should research their supporters or consult with providers who have experience in curating items for similar demographics (Weinstein 77).

Consignment sales offer an innovative way for nonprofit organizations to elevate their fundraiser events by providing exclusive items without upfront costs. From luxurious vacations to sports items memorabilia, consigned items engage donors, inspire competitive bidding, and ultimately boost revenue. By carefully selecting consignment providers, promoting items effectively, and choosing the right sales format—be it silent auction, online auction, or live event—nonprofits can create a memorable occasion that meets (and often exceeds) their fundraising goals.

Frequently Asked Questions (FAQs)

What types of events benefit most from incorporating consignment sales?

Virtually any fundraiser can benefit—whether it’s a gala, a silent auction, or an online auction. Consignment items add variety and excitement that can boost overall revenue for charity fundraising events.

How do we determine the fair market value for consigned items?

Work closely with your auction consignment provider or do independent research to identify realistic values. Setting a proper reserve price based on fair market value ensures items remain attractive and sell well.

How do consignment sales differ from donated items?

Donated items are given to your organization at no cost, whereas consigned items come with a predetermined minimum bid or reserve price. With consignment, you only pay if the item sells above that minimum, reducing financial risk.

What if a consignment item doesn’t sell at our fundraiser?

If an item does not sell, it simply goes back to the consignors—your organization is not typically responsible for the unsold inventory. This feature makes a fundraising consignment sale a low-risk addition to your charity fundraising efforts.

Works Cited

Greater Giving. “Consignment Strategies for Nonprofits.” Greater Giving, Greater Giving, 2022, www.greatergiving.com/consignment-strategies.

Greater Giving. “Promoting Auction Items for Maximum Impact.” Greater Giving, Greater Giving, 2022, www.greatergiving.com/promoting-auction-items.

Heyman, Darian Rodriguez. Nonprofit Fundraising 101: A Practical Guide with Easy to Implement Ideas & Tips from Industry Experts. Wiley, 2016.

OneCause. “Benefits of Mobile Bidding for Fundraisers.” OneCause, OneCause, 2023, www.onecause.com/benefits-of-mobile-bidding.

Weinstein, Stanley. The Complete Guide to Fundraising Management. 4th ed., Wiley, 2017.