How to Organize a Chinese Auction in 8 Steps

Think of an event where the suspense of a raffle meets the excitement of an auction — that's the magic of a tricky tray, Chinese auction, Chinese raffle, or penny social! This unique blend offers nonprofits a fresh way to engage donors and boost revenue.

Our guide reveals essential steps to organize a successful raffle or penny social, from setting goals to following up with guests. Learn how to procure enticing raffle items, promote action, and maximize participation for your fundraising efforts. Discover best practices to set your Chinese auction event apart and keep supporters coming back for more.

Table of Contents

• What is a Chinese auction or Chinese raffle?

• How does a Chinese auction work?

• 6 steps for organizing a penny social auction to raise money 

• 5 best practices for organizing a penny social 

• Final thoughts on Chinese auctions

• FAQs on Chinese auctions

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What is a Chinese auction?

A successful Chinese auction, Chinese raffle, tricky tray, or penny social offers a unique twist on traditional fundraising events. It combines elements of both silent auctions and raffles, creating an engaging experience for participants.

This format encourages active participation and allows attendees to strategize their ticket placement. It also creates a sense of anticipation as winners are revealed, making the fundraising event fun and effective for nonprofits.

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Origin of the phrase: Why is it no longer called a Chinese auction? 

While tricky trays were initially known as Chinese auctions, they have nothing to do with Chinese culture. It stemmed from an offensive 19th-century slur equating "Chinese" with cheap.

During that era, many Chinese immigrants faced discrimination and unfair wages. The term "Chinese auctions" became a degrading slang for shoddy quality. Since these raffles involved inexpensive raffle items, the derogatory label stuck. 

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Organizations now opt for inoffensive alternatives to a Chinese auction, like:

• Penny socials 

• Tricky tray raffles

• Pick-a-prize

• Chance auctions

• Lucky number dinners

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How does a Chinese auction work?

Here's a breakdown of how these raffle-styled fundraisers operate:

• Ticket purchase: Bidders buy tickets for the charity auction. Since bidding takes place with tickets, there are no rules on how many can be purchased.

• Prize display: Prize display: Guests explore all the raffle items or prizes, which are displayed like a silent auction. These can include experiences, products, raffle baskets, and other items.

• Bidding process: ‍To place bids, attendees leave tickets in the box/jar/bowl in front of their favorite items. You can allow guests to place as many event tickets as they want or limit the number.

• Winner selection: ‍Once bidding ends, the emcee draws a winning ticket for each item and decides on the winner.

• Prize collection: ‍Winning guests can collect their prizes immediately or later, depending on whether the event is a standalone or combined with other fundraisers.

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6 steps for organizing a penny social auction to raise money‍

1. Set a fundraising goal and budget  

Begin with a clear, achievable fundraising target. Consider your specific needs, required funding, and timeline. For example, you might aim to raise $20,000 for shelter renovations within three months.

Next, create a detailed budget. Account for venue costs, marketing expenses, supplies, decorations, and raffle software fees. (Unless your nonprofit organization is using Zeffy, the 100% free online raffle platform)

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2. Assemble an auction committee 

Penny socials require all hands on deck. Creating an auction team will ensure that no single person is overloaded with responsibilities. 

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While it's good to appoint only one event coordinator to lead the planning and execution process, you'll also need these key players to get things done:

• Procurement: One to three people to solicit items from donors and companies

• Logistics: One to four people to handle the venue, invites, catering, and more

• Marketing: One to three people to promote your event and sell raffle tickets

• Emcee: Someone with a bright personality who can host the event and ensure guests are having fun

• Volunteers: Five to six people to help out on the auction day with tasks like setup, check-in, check-out, and more

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The size of your auction team will ultimately depend on the organization's size, but ensure your committee has these roles defined.

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3. Select a venue 

Once you've decided on the date and time for your penny social, start looking for your venue. Here are some key factors to consider that will help you pick the perfect venue:

• Capacity and facilities: Estimate a tentative guest count for your auction and ensure your venue comfortably accommodates all attendees and has essential facilities like restrooms

• Location and parking: Choose a location easily accessible to attendees with ample parking space

• Layout and ambiance: Ensure the layout is ideal for displaying auction items properly and allows space for smooth traffic flow

• Cost and availability: Check if the venue is available on your preferred date and time and fits your budget

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4. Decide your prize items

Auction items will drive people to your fundraiser and encourage them to purchase multiple event tickets. Try to procure one or more big-ticket items, like concert seats or new tech, plus several smaller items.

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Here are some ways to find item donations:

• Reach out to companies that donate to nonprofits to request in-kind or cash donations 

• Partner with local businesses and storefronts - they often provide auction fundraiser items as a way to give back to the community

• Ask your volunteers to reach out to their network to secure donations

• Ask your staff and board members whether they can contribute prizes or connect you with potential sponsors

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Some popular items to consider selling at your penny social auction event include:

• Gift baskets designed around a theme

• Unique pop culture goods and experiences

• Vacation packages

• Lessons or personal training certificates

• Gift cards from local businesses

• Gourmet food and drink packages 

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5. Promote your penny social event

The best way to ensure maximum participation is to leverage multiple marketing channels to promote your penny socials. For the widest reach, prioritize the following channels:

• Email marketing: Include sections about your auction in your monthly and quarterly newsletters sent out in the lead-up to the event. Create separate email blasts focused on the auction.

• Social media: Post about your auction early and frequently on all of your organization's social media accounts and include a link to your sign-up form

• Direct mail: To give recipients the choice of how to sign up, consider including both a physical RSVP card with a prepaid return envelope and a QR code to an online registration form.

• Local media: To spread the word, share press releases about your event with local newspapers and magazine publishers. Contact a local radio show and other media to announce your auction.

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6. Sell admission or raffle tickets

Streamline your ticket sales process to boost participation, raise funds, and entice people to purchase additional tickets. Offer multiple purchase options, including online pre-sales, physical ticket booths, and at-the-door sales.

Create tiered ticket packages to cater to different budgets and preferences. You can host both an online and a physical event for supporters to bid on items.

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5 best practices for organizing a penny social 

1. Highlight leading bids

During your auction, periodically update participants on leading bids for items. This creates a sense of urgency and encourages others to increase their bids, leading to more sales.

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2. Create ticket packages

Provide different ticket packages in different tiers to cater to various donation preferences and financial capacities to sell as many tickets as possible. For instance, standard prizes are one ticket per entry, big prizes are five raffle tickets per entry, and mid-level prizes are around 2-4 tickets.

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3. Host additional fundraising activities

Consider making the tricky tray fundraisers part of a larger fundraising event, such as a gala or dinner. This approach can enhance the overall experience, attract a wider audience, and potentially increase donations by offering multiple ways for attendees to contribute.

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4. Socialize with your guests

Spend some time mingling with your guests before the penny social starts or as they browse your items. This will help you find new supporters and deepen your ties with existing donors.

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5. Set up a donation box

Set up one or two donation boxes at the venue. Even if it’s a ticketed fundraising event, some guests can still decide to give small cash donations. Incorporate QR codes on these boxes to allow online donations as well. 

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Case study: How Say Hi Foundation sold tricky tray tickets using Zeffy and saved $39,935

The Say Hi Foundation Inc. successfully leveraged Zeffy's online raffle platform for their 2024 Tricky Tray and Bourbon Bonanza Event. This creative fundraiser combined a tricky tray with a bourbon-themed gathering, appealing to a diverse audience. They created a high-value experience for attendees by offering general admission tickets that included tricky tray baskets, catered food, an open bar, and live music.

Using Zeffy's free ticketing system, they raised an impressive $39,935 and saved $2,000 in fees. This event shows how cost-effective — and better, free — online tools can significantly boost a nonprofit's fundraising potential and community engagement.

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FAQs to Raise Money with a Unique Fundraising Event

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