How to set silent auction starting bids, increments and reserves

Starting bid: 30 to 50 percent of value

Set the starting bid at 30 to 50 percent of the item’s fair market value. A low start gets the first bid in, and once one person bids, others follow. Popular items, experiences and anything one of a kind can start toward 50 percent. Generic gift cards should start lower, because people know exactly what they are worth.

Bid increment: about 10 percent of the starting bid

The increment is the smallest amount a new bid must add. Around 10 percent of the starting bid, rounded to a friendly number, works well.

• Items starting under $100: $5 increments
• $100 to $500: $10 to $25 increments
• $500 to $1,000: $25 to $50 increments
• Over $1,000: $50 to $100 increments

Reserve price: only for items you can’t sell cheaply

A reserve is the lowest price you’ll accept. If bidding ends below it, the item doesn’t sell. Use it for donated art, trips or anything where the donor expects a minimum. Keep the reserve private: bidders should see only whether it has been met, so the bidding still starts low and builds momentum.

Don’t put reserves on everything. Too many “reserve not met” labels make bidders hesitate.

Buy Now: for items people want right away

A Buy Now price lets someone end the bidding on an item and win it on the spot. Set it at 125 to 150 percent of fair market value. It works best on popular items with clear value, like sports tickets or a vacation stay, and on items you have several of.

Max bids: let bidders set a limit

With a max bid, a bidder enters the most they’re willing to pay, and the system bids for them one increment at a time when someone else bids. It keeps bidders in the running when they step away from their phone, and tends to raise final prices.

Fair market value and donor receipts

In the US, a winning bidder can usually deduct only the amount they paid above the item’s fair market value. Record a value for every item and share it with winners. Check with your accountant for your organization’s specific rules.

Quick pricing checklist

1. Record the fair market value for every item.
2. Set the starting bid at 30 to 50 percent of value.
3. Set increments at about 10 percent of the starting bid, rounded.
4. Add a private reserve only to high-value or donor-sensitive items.
5. Add Buy Now at 125 to 150 percent of value for popular items.
6. Turn on max bids and soft close.

Where CausIO helps

CausIO supports per-item starting bids, increments, private reserves, Buy Now and max bids, and lets you bulk-edit increments across many items at once. Bidders only see “reserve not met”, never the amount.