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 fundraising methods, such as ticket sales, donations, and auctions, are staples in these events. However, many organizations are discovering the benefits of adding consignment sales to their fundraising strategies, allowing them to offer high-value items without upfront costs. By partnering with a consignment provider, nonprofits can present 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 provided by a third party who sets a minimum price on each item. The organization auctions these items and retains a portion of the sales proceeds above the minimum price. This arrangement eliminates financial risk for the organization, as any unsold items can be returned to the consignor (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 include unique items like luxury vacations, celebrity memorabilia,

 and fine art that entice donors and encourage bidding.

The Benefits of Consignment Sales at Fundraising Events

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

1. No Upfront Costs: Many consignment arrangements do not require upfront payment, which minimizes the financial risk to the organization. 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 unique items, 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 various interests and attract a broader audience, as supporters may be drawn to luxury items, adventure packages, or rare collectibles they would not find elsewhere.
4. Increased Donor Engagement: Unique, exclusive consignment items can make fundraising events more memorable and exciting, 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 consignment sales, 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: Travel packages, guided tours, and all-inclusive getaways are popular among donors because of the uniqueness and exclusivity they offer. Many consignment vendors, such as Mission First Fundraising, provide pre-packaged 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. Memorabilia, such as autographed sports gear or music collectibles, also attract niche collectors. Mission First Fundraising has great connections for finding such items!
• Adventure Experiences: Thrill-based experiences like hot-air ballooning, skydiving, or race car driving appeal to adventurous attendees. These experiences attract unique bidders and allow the organization to diversify its offerings (Greater Giving “Auction Item Ideas”).

Best Practices for Implementing Consignment Sales 

Successfully integrating consignment sales into a fundraising event requires careful planning and strategy. Here are a few best practices:

1. Select a Reliable Provider: Choosing a reputable consignment provider with experience in fundraising can make the process seamless. Companies like Mission First Fundraising specialize in curating items for nonprofits, making it easy for organizations to find items that will resonate with their audience.
2. Promote Consignment Items Ahead of Time: Providing previews of consignment items before the event can create excitement and anticipation. Charity auction software providers like Greater Giving recommend emailing event attendees or sharing on social media to maximize interest in consignment items (Greater Giving “Promoting Auction Items”).
3. Use the Right Sales Format: Consignment items work well in both silent and live auctions, where they can generate enthusiasm and competitive bidding. Professional auctioneers can help create a lively atmosphere, especially for high-value items (Heyman 128).
4. Leverage Mobile Bidding Technology: Platforms such as OneCause and Handbid offer mobile bidding solutions that allow attendees to place bids from their smartphones. Mobile bidding not only enhances convenience but also allows for real-time bidding updates, which can increase the final bid amounts (OneCause “Benefits of Mobile Bidding”).

Potential Challenges and How to Address Them

While consignment sales can significantly enhance revenue, there are potential risks that organizations should be mindful of:

• Setting Appropriate Minimum Bids: Overpricing items can lead to unsold inventory, which reduces revenue. It is essential to set realistic minimum bids that reflect market interest while ensuring profitability (Heyman 130).
• Choosing Items Aligned with Attendee Preferences: Misaligned items may fail to attract interest. Organizations should research their donor base or consult with consignment providers who have experience curating items for similar demographics (Weinstein 77).

Consignment sales offer an innovative way for nonprofit organizations to elevate their fundraising events by providing high-value, unique items without upfront costs. From luxurious vacations to exclusive memorabilia, consignment items engage donors, inspire competitive bidding, and ultimately boost revenue. By carefully selecting consignment providers, promoting items effectively, and choosing the right sales format, nonprofits can create a memorable event that reaches – and often exceeds – their fundraising goals.

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.