benefit auction

The Truth About Donated Items in Fundraising: Why They Rarely Work Anymore

Let’s talk about one of the most common fundraising myths still being repeated by well-meaning nonprofits across the country:

“If we just get enough donated items, we’ll raise more money.”

Unfortunately, that strategy no longer works — and in many cases, it’s the reason events underperform.

Here’s why:

🔍 The Reality:

There are over 1.5 million charities in the United States — and thousands more locally. Businesses like restaurants and retail stores are inundated weekly with donation requests. You're not the only one asking.

What most nonprofits don’t realize is:

  • Gift cards are donated because they drive customers back in the door

  • Merchandise is often overstock or outdated

  • And many donations aren’t even tax deductible anymore due to IRS caps (check the laws — it changed during the Obama administration)

🧠 Common Mistakes:

  • Silent auction gift cards often sell for 50% of face value or less

  • Gift baskets are everywhere, but let me ask you this:

“When was the last time you gave someone a gift basket as a present?”
That’s when people laugh and say, “Never.” And exactly — no one wants them.

You may have copied what you saw at another fundraiser, but did you ask:

  • How much money did they actually raise?

  • Was that strategy even profitable?

We call that “Broken Spoke Fundraising” — using outdated tactics just because you saw them done somewhere else.

🧩 What Actually Works:

The nonprofits we work with see massive gains when they shift from donation-based auctions to curated, premium experiences.

📈 Real example:
A nonprofit using mostly donated items raised $5,000.
The following year, with premium auction items — travel packages, signed memorabilia, upscale decor — they raised $60,000.

One guest even bid over $7,000 on a Tuscany villa trip because, in her words:

“I’ve been coming here for years and never saw anything worth bidding on — until now.”

🚫 The Bottom Line:

Donated items don’t create bidding wars.
They don’t build energy. They don’t inspire competition.

They’re passive.
They’re overused.
And they are holding you back.

✅ What To Do Instead:

  • Focus on curated, high-impact items

  • Create a bidding experience, not just a list of leftovers

  • Design your auction around what donors desire — not what’s convenient to collect

Because the truth is:

It’s not about more. It’s about better.