In a charity auction the winning payment benefits a cause that is presumably valued by the bidder as well as competing bidders. Thus, the bidder receives a benefit from his own payment – both the item won and the value the donation supports the organization – and other bidders do as well, as their charity is supported.

How do silent auctions make money?

Silent auctions are a type of charity auction and nonprofit fundraising event. During silent auctions, organizations raise money by taking bids on auction items and selling each to the highest bidder. Bidding is either conducted by using paper bid sheets or mobile bidding software.

What is the minimum price at an auction called?

What Is a Reserve Price? Common to auctions, a reserve price or a reservation price is the minimum amount that a seller will accept as the winning bid. Alternatively, it is less commonly known as the highest price a buyer is willing to pay for a good or service.