Consignment Auction Packages: What Nonprofits Need to Know

For nonprofit organizations, a successful auction is about more than filling a catalog with exciting items. It’s about creating an experience that encourages guests to bid generously while protecting the organization’s fundraising goals.

That’s where consignment auction packages can play an important role. When used strategically, consignment packages can give nonprofits access to high-value experiences without requiring an upfront purchase. They also come with considerations around pricing, package selection, event fit, and risk.

So, what should nonprofits know before adding consignment packages to their next auction? We had the privilege of sitting down with Kevin Spykerman from Auction Packages to get an inside scoop of all the essential dos and don’ts of consignment auction packages.

Kevin has nearly 20 years of experience in the charity and auction space, including more than 17 years with Auction Packages. His expertise offered helpful insight into when consignment makes sense, what to watch out for, and how to get the most from your auction inventory.

What Is a Consignment Auction Package?

With a consignment model, a nonprofit can offer a vacation, experience, or another high-value package at its live auction without paying for the package upfront.

The nonprofit generally pays the package provider only when the item sells, which gives organizations access to attractive travel experiences that might otherwise be difficult or expensive to secure for a live auction.

Now that you understand what a consignment package is, how should you determine if you should use one at your upcoming event?

Start Planning & Promoting 90-120 Days Before Your Event

Nonprofits should begin planning and promoting their consignment package(s) well before the event.

Tip from Kevin: Select auction packages 90 to 120 days before the event.

An extended timeline gives nonprofits enough time to evaluate the packages, develop their promotional strategy, and begin building excitement with potential bidders. Whereas, waiting until the last minute can make an auction package feel like just another item on the night-of auction list.

Many consignment providers can also give nonprofits marketing materials designed to help promote the package before and during the event. These materials may include videos, QR codes, PDFs, and other promotional resources that make it easier for guests to understand what they are bidding on. 

Including these marketing materials in the pre-event promotion can help potential bidders become familiar with the experience and start imagining themselves using it. 

The more clearly guests understand what they’re bidding on, the easier it can be for them to make a confident decision when the package reaches the stage.

Choose Packages Based on Your Donors – not Yourself

One of the easiest mistakes nonprofits can make is choosing auction items based on what the organization’s staff or committee members personally like.

Kevin encourages nonprofits to look at the decision differently. 

Who is actually sitting in the room?

A package that sounds incredible to an auction committee may not necessarily appeal to the people attending the event or, just as importantly, may not align with what they are willing and able to spend.

Consider the organization’s donor base. Are attendees frequent travelers? Do they enjoy luxury experiences? Are they families? Couples? Business owners? Alumni? Members of a particular community?

Understanding the audience can help determine which packages have a realistic opportunity to generate competitive bidding.

The most expensive package isn’t automatically the most valuable auction item. The right package is one that matches the interests and spending capacity of the people who will be bidding.

Give Bidders a Choice When Possible

Another option to engage donors is the use of choice-based packages. Rather than limiting the winning bidder to one specific destination or experience, certain packages can provide a selection of options. This can expand the potential audience for the item.

For example, instead of a package that appeals primarily to someone who wants to visit one specific destination, a choice-based travel experience may appeal to multiple bidders giving them several destinations or experiences to consider.

That flexibility can make the package more attractive to multiple people in the room and potentially create more competition when the bidding begins.

Don’t Overload Your Live Auction With Consignment

More isn’t necessarily better. Think strategically about how many consignment items you are including in your auction. 

Tip from Kevin: Limit consignment packages to roughly one to three items in a live auction.

A live auction needs variety. If too many items come from the same type of consignment inventory, the auction can begin to feel repetitive and individual packages may compete with one another for the same bidders.

Consignment should complement the organization’s existing auction items rather than replace them. The strongest live auctions typically create a mix of experiences, donated items, unique opportunities, and carefully selected consignment packages.

Know Your Numbers: Costs, Reserves and Bidding Strategy 

We often get asked about the cost and budget surrounding consignment packages. Nonprofits need to understand the economics before selecting a consignment partner and how the organization gets paid when the item sells. Look for a flat-cost model which can make the economics easier for a nonprofit to understand because the organization knows its underlying cost and can structure bidding accordingly.

Tip from Kevin: Be cautious about arrangements where a consignment company takes a percentage of the auction sale. 

Before the event, nonprofits should know:

• What the package costs the organization if it sells
• Whether there are additional fees
• What is included in the package
• What the bidder receives
• What happens if the package doesn’t sell
• What the fulfillment process looks like after the auction

As a nonprofit is navigating their budget, it is key to establish a minimum selling price. While the exact strategy can vary based on the package and event, the underlying principle is simple – create margin by setting the starting bid above the cost of the package. Make sure you are communicating these numbers to your auctioneer before the event starts, so you can leverage fundraising opportunities. 

Tip from Kevin: Start bidding at least 20% above the organization's cost of the consignment package.

Taking the time to create clarity beforehand can prevent unpleasant surprises afterward.

Vet Your Consignment Partner

Not every consignment provider is the same. Before committing to a package, nonprofits should look beyond the description of the vacation or experience itself.

The provider’s ability to fulfill the package is just as important. Organizations should consider the company’s reputation, stability, customer service, fulfillment process, and experience working with nonprofits.

After all, the relationship doesn’t end when the auction closes. A bidder has purchased an experience from the nonprofit’s event. If something goes wrong during fulfillment, the donor may associate that experience with the organization, not just the company that provided the package.

Reliable fulfillment protects both the bidder experience and the nonprofit’s reputation.

Follow Up After the Event

While the event may end, the relationship-building opportunity continues well beyond that evening.

When a donor wins a travel package, the nonprofit has another reason to stay connected. Follow-up communication can turn a one-time auction transaction into an ongoing relationship.

Tip from Kevin: Include thoughtful communication around the winner’s experience like a think you note or a memorable touch while the donor is traveling. 

Sometimes the best stewardship is simply letting the donor know that the organization appreciates their support and hopes they are enjoying the experience they helped make possible.

Consignment Should Support the Mission

The best way to think about consignment packages isn’t as a shortcut for filling an auction but as a fundraising strategy. 

The right package can give a nonprofit access to an appealing experience without an upfront purchase, provide bidders with something exciting to compete for, and create opportunities for the organization to learn more about its supporters.

But success depends on the details: Choose packages based on your audience, promote them early, understand the costs, limit the number of consignment items, vet your partners, and most importantly, use the auction as an opportunity to build relationships, not simply to generate a winning bid.

When approached strategically, consignment packages can become more than auction items. They can be a way for nonprofits to create excitement around an event, give donors memorable experiences, and open the door to long-term engagement with the people who make their mission possible.