12 silent auction rules you need to know (+free guide!)

Silent auctions are exciting and popular fundraising events that help nonprofits raise money for a good cause, build community, and strengthen their mission. 

Most successful silent auctions follow a particular etiquette to ensure everything goes off without a hitch (and to keep the hosting organization out of any hot legal water). When run correctly, silent auctions can bring in substantial funds—nonprofits often raise between $10K and $100K through successful auction events.

No matter your theme or auction item selection, there are a few key silent auction guidelines and practices you can easily implement. Plus, we’ve included a free silent auction rules instructions template that your organization can use at your next auction event.

Silent auction state rules 

First things first—it’s essential to determine the legality of silent auctions in your state before you begin planning. In many states, silent auctions are legal but require prior registration. In other cases, silent auctions are categorized as “legalized games of chance,” which are legal in some states and not in others. 

Always research your state’s laws and consult with a legal expert if you’re in doubt. 

Silent auction rules to stand by

Whether you’re looking for in-person or online silent auction rules, enforcing the regulations below will keep expectations clear. Remember to share your silent auction bidding rules with all bidders before your event begins (e.g., during registration) so you can focus on running the auction on the day of the event. 

1. Bidding begins and ends at designated times ⏰

Whether you’re hosting an in-person, hybrid, or online silent auction, always state the times when bidding will start and end. Alert all registered bidders as the final hours of the auction approach to create a sense of urgency and encourage higher bids.

2. Auction items are priced based on their fair market value ⚖️

Not sure how to price silent auction items? Estimate and list the fair market value (FMV) for each item. 

Any money paid over that is considered a charitable contribution and is tax-deductible. Set each item’s starting bid at approximately 30-50% of its FMV. Include both the FMV and starting bid in your silent auction item descriptions.

3. Bids must meet the minimum bidding increment requirement (or risk disqualification) 🚫

Minimum bid increments are generally set at 10% of the item’s FMV. While bidding greater than one increment at a time is allowed, it must still follow the minimum increment rule. 

🎬 See it in action: The minimum bid increment of an item with an FMV of $100 would be $10. A bid could increase from $40 to $70 (three times the minimum bid amount) but not from $70 to $72. 

4. Bidding on an item multiple times is allowed 🏎️

Inform bidders that they can bid multiple times on the same item (because no one wants to be outbid!) as long as they meet the minimum bid requirement.

5. All bids and sales are final 🏁

Make it clear that all bids and sales of auction items are binding, so no one tries to go back on a bid or return an item they've won. The final bid placed before the auction closes is considered the winning bid.

6. Bidders agree to pay in full at the end of the auction 🤝

Let bidders know that if they win an item, they must pay the amount they bid at the end of the auction. Don’t release items to winning bidders until you receive payments in full!

7. Limits may apply 🖐

Inform bidders of any and all limitations on your auction items, especially for auction packages. This could include blackout dates for restaurant gift certificates, airfare, or hotel stays.

8. Age restrictions may apply 🐣

Clarify that age-restricted items (like wine, high-end liquor, and casino stays) should only be bid on and sold to individuals who are legally old enough to enjoy them.

9. Bidder assumes all risk 🔔

Inform bidders that they assume any risks or hazards associated with items they win. This protects your organization from getting hit with a liability lawsuit if someone is injured on an excursion they won at your silent auction.

10. Items may change or be withdrawn without notice 😬

Equip your organization to adjust auction items as needed (for instance, if those front-row seat tickets you were promised don’t come through).

11. Winners will be determined at the end of the auction 🏆

Clearly communicate that the highest bidder at closing time (or the bidder who chose the Buy Now option) will be the winner of each item. Provide instructions on how winners can collect their items or arrange for delivery.

12. Items are sold as-is 🙅

Explain that the buyer is responsible for inspecting an item for any damage or discrepancies before placing a bid.

Learn more

Explore the nonprofit's complete guide to silent auctions →

Silent auction rules sheet template

Copy, paste, and customize the following silent auction rules template to easily share important guidelines with your participants. Don’t forget to update the text in the brackets below to match your organization!‍‍

Freebie alert!

Download the silent auction rules and guidelines template ->

Make bidding a breeze with Givebutter

Don’t let rules and regulations deter you from a great fundraising idea. Simply send these silent auction rules out ahead of time and keep a copy on hand to help you answer any questions during your silent auction. With a little guidance, running your silent auction will be as smooth as butter. 

Going once, going twice… Givebutter Auctions streamlines the auction process and improves donor engagement. Best of all, it’s free! From registering bidders and listing items to placing bids and receiving payments, Givebutter meets all your silent auction needs… Sold!

‍Create your free Givebutter account today and start planning the silent auction of your dreams.

FAQs: Top questions on silent auction rules

What are the basic rules of a silent auction? 

The basic rules of auctions include that bids must meet the minimum bidding increment, all bids and sales are final, and bidders agree to pay in full at the end of the auction. 

You should also specify that age restrictions and limits apply, items are sold as-is, and bidders assume all risks for any hazards associated with the item they win. 

What is the minimum bid for a silent auction? 

To make your item as appealing as possible for bidders, set your minimum bid at 30-50% of each item's fair market value (FMV). 

How do you handle bid disputes?

To minimize the chance of bid disputes, share silent auction rules beforehand. If a dispute does arise, remain professional and composed. Work with the auctioneer and the disputant to arrive at a fair solution. 

Refer to your outlined terms and conditions, and handle the situation politely and respectfully. 

What happens if an auction item doesn’t sell? 

If you understand your audience and choose your auction items wisely, you likely won’t have to worry about unsold auction items. But if you do, reach out to attendees who expressed interest but did not bid with a slightly lower list price. 

You could also consider re-listing the item at your next silent auction with a clearer description or improved quality.