| Item Name | Category | FMV | Consignment Cost | Override Start % | Starting Bid | Increment | Buy-It-Now | Est. Revenue | IRS >$75 | Remove |
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How to Use This Silent Auction Pricing Planner
- Set global defaults — Choose your currency, starting-bid percentage (30–50% of FMV), increment method, buy-it-now percentage (150–200% of FMV), and your preferred rounding denomination.
- Add each auction item — Click "Add Item" and enter the item name, category, and its fair market value (FMV). The planner auto-calculates starting bid, increment, and buy-it-now price instantly.
- Override per item if needed — Enter a custom starting-bid percentage in the override column for items that need special handling (e.g., consignment packages with a cost floor, or high-demand experiences).
- Set a consignment cost floor — For consignment items, enter your nonprofit's cost. The planner flags any starting bid that falls below your cost and auto-adjusts upward to protect you.
- Check the IRS column — Items flagged "Yes" have a starting bid above $75. Any winning bid on these items requires written disclosure of FMV and the deductible amount under IRS quid pro quo rules.
- Review the summary — See total FMV, minimum revenue (all items sell at opening bid), estimated revenue (~70% of FMV, a common auction benchmark), and a scenario where every item sells at buy-it-now price.
- Print or export — Use "Print / Save as PDF" for a clean one-page catalog, or export to CSV to share with your committee.
The Silent Auction Pricing Formula (Verified)
Every figure in this planner is based on verified industry standards from nonprofit fundraising practitioners. Here's the core formula:
- Starting Bid = FMV × Starting Bid % (typically 30–50%). Round to the nearest clean denomination.
- Bid Increment = approximately 10% of FMV, rounded to a clean number. A tiered schedule (e.g., $5 increments for FMV $50–$149, up to $100 for FMV over $1,000) is widely used in the field.
- Buy-It-Now = FMV × Buy-It-Now % (typically 150–200%). This instant-win price creates urgency and maximises revenue from motivated donors.
- Estimated Revenue per item ≈ 70% of FMV — a common real-world benchmark when starting bids are set at 30–40% and bidding is competitive.
Why Starting-Bid Percentage Matters
A starting bid set too high (above 50–60% of FMV) discourages the first bid entirely; common-value items like gift cards may sit unsold. Too low (below 20%) and bidding may stall early, closing well below potential. The 30–50% range keeps multiple bidders competing from the start.
Item-Type Guidance
- Gift cards & retail items: Start at 50–60% of FMV. Bidders know the exact value and feel comfortable opening higher.
- Technology & electronics: 50–60% of FMV. High perceived value, easy to price-check online.
- Travel packages & experiences: 30–40% of FMV. Subjective value; a lower entry point brings in the first bid.
- Unique / one-of-a-kind items: 40–50% of FMV. Exclusivity justifies a higher floor.
- Consignment packages: Starting bid must be at or above the nonprofit's cost — never below. Any bid above cost is net profit.
Rounding Is Not Optional
After calculating your increment as a percentage, always round to the nearest $5, $10, $25, $50, or $100. Bidders do mental arithmetic at a noisy event — clean numbers reduce hesitation and speed up bidding.
IRS Quid Pro Quo Disclosure Rules
Under IRC Section 6115, a charitable organisation must provide a written disclosure statement whenever a donor makes a quid pro quo contribution over $75. At a silent auction, this means: if a winning bid exceeds $75, the receipt must state the FMV of the item and clarify that only the amount paid above FMV is deductible as a charitable contribution.
The penalty for non-disclosure is $10 per contribution, up to $5,000 per fundraising event, and compliance is a question on IRS Form 990. Displaying FMV prominently on every bid sheet or catalog entry satisfies the disclosure requirement. Source: IRS.gov — Quid Pro Quo Contributions.
Frequently Asked Questions
Industry standard is 30–50% of the item's fair market value (FMV). Common items should start at the lower end (30–40%) to attract competitive bidding. Rare, unique, or high-demand items can open at 40–50%. Consignment items should never start below the nonprofit's cost price — your floor is your break-even point.
Set bid increments at approximately 10% of the item's FMV, then round to the nearest clean denomination ($5, $10, $25, $50, or $100). A widely-used tiered schedule: $5 for FMV $50–$149; $10 for $150–$249; $20 for $250–$399; $25 for $400–$599; $50 for $600–$999; $100 for FMV over $1,000. (Source: ClickBid nonprofit auction platform.)
Set buy-it-now at 150–200% of FMV. This instant-win option rewards decisive donors, creates urgency that also lifts bids on nearby items, and captures maximum revenue. Avoid buy-it-now for unique or emotionally charged items where a bidding war could push the price higher than any preset figure.
Whenever a winning bid (quid pro quo payment) exceeds $75, you must provide a written disclosure of the item's FMV and note that only the excess above FMV is tax-deductible. The penalty for non-disclosure is $10 per contribution, up to $5,000 per event. IRS Form 990 asks organisations to confirm compliance. Displaying FMV on your bid sheets or catalog is the simplest way to satisfy the requirement.
Most bid sheets include 10–15 bid lines. High-demand or high-value items can have up to 20 lines, while lower-value items typically need only 8–10. The goal is enough room for competitive back-and-forth without the sheet feeling incomplete or overwhelming. Pre-filling the bid amount column with each increment (starting bid, starting bid + 1×increment, +2×increment, etc.) prevents math errors and speeds up bidding.
Only the amount paid above the item's FMV is deductible as a charitable contribution. If the winning bid equals or is below the FMV, no deduction is allowed. For example, if a bidder pays $150 for an item with FMV $200, the deductible amount is $0. If they pay $300, the deductible portion is $100. Your nonprofit must display FMV prominently to help bidders calculate their own deduction.
Both are valid. The 10%-of-FMV method is mathematically consistent and scales cleanly across all price points. Tiered schedules (fixed dollar amounts by price band) are easier for volunteers to apply consistently without a calculator at the event. This planner offers both — choose whichever fits your team's setup.