Auctions

Auctions, often held at one-off fundraising events, can be a great way to increase revenue.

Unlike raffles and lotteries, auctions have the benefit of not falling under gambling law. However, you still need to be aware of consumer legislation such as those for unfair commercial practices. The Office of Fair Trading and Department for Business, Innovation and Skills has produced guidance on these regulations.

Auctions also come under the Trade Descriptions Act 1968 so make sure that you value any items accurately.

If you are organising an online auction, you will also need to be aware of the Distance Selling Regulations.

You do not need to be licensed as an auctioneer in the UK but you may find it helpful to contact a auctioneer who is a member of a professional organisation such as the National Association of Valuers and Auctioneers (NAVA) or the Society of Fine Art Auctioneers and Valuers (SOFAA).

Establishing terms and conditions in advance is important to help avoid problems later. Some of the issues to consider will be highlighted during a risk assessment. For example, what would you do if the auction prize was no longer available? What will you do if someone decides they no longer want to purchase the auction item?

You will also need to think about potential reserve prices for your items and provide these to the auctioneer in writing before the event. It is general practice that there is a 10% discretion on any reserve price.

In some cases you can Gift Aid money received through auctions.

Codes of Fundraising Practice

The Codes of Fundraising Practice highlight the law and best practice for a range of fundraising techniques. All of the Codes are available online. Although there is not an auction-specific Code, the below Codes may be particularly relevant.