Overview of Auction Terms and Conditions

Auction terms and conditions are the legal agreements and rules that govern participation in your charity auction. These terms establish the contractual relationship between your organization and bidders, define rights and responsibilities, limit liability, and set expectations for payment, item fulfillment, refunds, and dispute resolution. Properly crafted terms and conditions protect your organization while creating a fair, transparent auction environment.

Why Terms and Conditions Are Essential

Legal Protection for Your Organization

Well-written terms provide critical safeguards:

Liability Limitation:

• Limits organization responsibility for item defects
• Protects against injury claims at events
• Clarifies item condition disclaimers
• Reduces legal exposure
• Defines scope of warranties

Binding Agreements:

• Creates enforceable contracts with bidders
• Establishes payment obligations
• Defines consequences of non-payment
• Sets dispute resolution procedures
• Supports collection efforts if needed

Intellectual Property:

• Protects use of photos and content
• Clarifies image rights
• Preserves trademark protections
• Prevents unauthorized commercial use
• Maintains brand control

Tax and Compliance:

• Documents charitable contribution rules
• Explains tax deduction limitations
• Meets IRS disclosure requirements
• Supports proper tax receipts
• Complies with state regulations

Clear Bidder Expectations

Terms help bidders understand:

Bidding Rules:

• How bidding works
• Bid increment requirements
• Proxy bidding explanations
• Winning bidder determination
• Closing time policies

Payment Requirements:

• Accepted payment methods
• Payment deadlines
• Late payment consequences
• Processing fees if any
• Refund policies

Item Fulfillment:

• Pickup procedures
• Shipping arrangements
• Certificate expiration dates
• Usage restrictions
• Transfer policies

Conduct Standards:

• Prohibited behaviors
• Account suspension grounds
• Fraud prevention measures
• Privacy expectations
• Communication guidelines

What to Include in Terms and Conditions

Essential Components

Every auction should address these topics:

1. Agreement to Terms

• Checkbox acknowledgment required
• Binding nature of agreement
• Age requirements (18+ or with parent)
• Capacity to enter contract
• Updates to terms notification

2. Registration Requirements

• Information accuracy requirement
• Account security responsibilities
• One account per person rule
• Verification procedures
• Account suspension grounds

3. Bidding Rules

• How to place bids
• Bid increments explained
• Proxy bidding mechanics
• Bid retraction policy (usually not allowed)
• Closing time and extensions
• Winning bidder notification

4. Payment Terms

• Payment deadline (e.g., 48 hours after auction close)
• Accepted payment methods
• Credit card authorization
• Payment processing fees
• Late payment penalties
• Non-payment consequences
• Refund and cancellation policy

5. Item Descriptions and Disclaimers

• "As-is" condition clause
• Organization makes no warranties
• Donor-provided information accuracy
• Value estimates are approximate
• Right to withdraw items
• Substitution rights if needed

6. Item Fulfillment

• Pickup locations and times
• Shipping costs and arrangements
• Certificate delivery methods
• Expiration dates and blackout periods
• Transfer and resale restrictions
• Gift certificate terms

7. Tax Deductibility

• IRS requirements for charitable contributions
• Fair market value vs. purchase price
• Tax receipt provisions
• "No goods or services received" statements
• Consult tax advisor language
• Form 1099 reporting if applicable

8. Liability Limitations

• No warranties express or implied
• Not responsible for item defects
• Not liable for donor non-fulfillment
• Event safety disclaimers
• Force majeure provisions
• Maximum liability limits

9. Dispute Resolution

• Governing law (your state)
• Venue for legal actions
• Arbitration requirements if desired
• Mediation procedures
• Attorney fee provisions
• Limitation on class actions

10. Privacy and Data Use

• Information collection practices
• How data is used
• Third-party sharing
• Email communication consent
• Opt-out procedures
• GDPR compliance if applicable

11. Code of Conduct

• Respectful behavior requirements
• Prohibited activities
• Fraud prevention
• Bid manipulation prohibitions
• Account termination grounds
• Right to ban participants

12. Miscellaneous Provisions

• Severability clause
• Entire agreement statement
• Modification procedures
• Waiver provisions
• Assignment restrictions
• Contact information for questions

How to Add Terms and Conditions

Step-by-Step Process

Step 1: Access Auction Settings

1. Log into your CharityAuctionsToday dashboard
2. Select your specific auction event
3. Navigate to "Settings" or "Auction Settings"
4. Click "Terms & Conditions," "Legal," or "Auction Rules"
5. Open the terms and conditions editor

Step 2: Choose Your Approach

Option A: Use Platform Template

• Click "Use Default Template" or "Load Sample Terms"
• Review pre-written terms
• Customize organization name and details
• Modify sections as needed
• Ensures comprehensive coverage

Option B: Start from Scratch

• Click "Create Custom Terms"
• Write original terms
• Include all essential components
• Have attorney review if possible
• More work but fully customized

Option C: Upload Existing Terms

• Click "Upload" or "Import"
• Select your terms document (PDF, Word, or text)
• Platform converts to editable format
• Review and adjust formatting
• Verify all sections transferred correctly

Step 3: Customize Your Terms

Use the text editor to enter or modify terms:

Basic Formatting:

• Headers and subheaders
• Bold and italic emphasis
• Numbered and bulleted lists
• Paragraph spacing
• Hyperlinks to external resources

Organization-Specific Details:

• Replace [Organization Name] with your name
• Update contact information
• Add your state/jurisdiction
• Include event-specific details
• Customize payment deadlines

Event-Specific Rules:

• Pickup location and hours
• Shipping policies
• Certificate redemption procedures
• Specific item restrictions
• Event date and location

Step 4: Require Bidder Agreement

Configure how bidders accept terms:

Registration Checkbox:

• Enable "Require terms acceptance"
• Checkbox appears at registration
• Cannot proceed without checking
• Timestamp recorded
• Legally binding acceptance

Checkbox Language Options:

• "I agree to the auction terms and conditions"
• "I have read and accept the terms"
• "I understand and agree to be bound by these terms"
• Link to full terms: "View Terms"

Placement Options:

• During registration process
• Before first bid
• At checkout
• Multiple touchpoints for reinforcement

Step 5: Make Terms Accessible

Ensure bidders can easily find terms:

Prominent Display:

• Link in main navigation
• Footer link on all pages
• Registration page display
• Checkout page reminder
• Email confirmation inclusion

Mobile Optimization:

• Readable on small screens
• Proper text sizing
• Easy scrolling
• Download option
• Print-friendly format

Multiple Formats:

• Web page view
• PDF download
• Printable version
• Email copy available
• Archive for records

Step 6: Save and Publish

1. Review all terms carefully
2. Check for organization-specific placeholders
3. Verify contact information correct
4. Test links and formatting
5. Click "Save" or "Publish Terms"
6. Confirm terms are live
7. Test bidder view

Step 7: Test the Bidder Experience

1. Create test bidder account
2. Go through registration process
3. Verify checkbox appears
4. Ensure terms link works
5. Check terms display properly
6. Confirm acceptance recorded
7. Review from mobile device

Sample Terms and Conditions

Basic Template Structure

AUCTION TERMS AND CONDITIONS

Last Updated: [Date]

AGREEMENT TO TERMS
By registering for and participating in the [Organization Name] charity auction ("Auction"), you ("Bidder") agree to be bound by these Terms and Conditions. If you do not agree to these terms, you may not participate in the Auction.

1. REGISTRATION
1.1 Eligibility: Bidders must be at least 18 years old and legally capable of entering binding contracts.
1.2 Account Information: You must provide accurate, complete information during registration and update it as needed.
1.3 Account Security: You are responsible for maintaining the confidentiality of your account credentials.
1.4 One Account: Each person may maintain only one active account.

2. BIDDING RULES
2.1 Binding Bids: All bids are binding commitments to purchase if you are the winning bidder.
2.2 Bid Increments: Bids must meet minimum increment requirements as displayed for each item.
2.3 Proxy Bidding: Our system may automatically bid on your behalf up to your maximum amount.
2.4 No Retractions: Bids generally cannot be retracted once placed except in cases of clear error.
2.5 Closing Times: Items close at specified times. Closing may extend if bids received in final minutes.
2.6 Winning Bidder: Highest bidder when auction closes is the winner and obligated to complete purchase.

3. PAYMENT TERMS
3.1 Payment Deadline: Payment must be received within 48 hours of auction close.
3.2 Payment Methods: We accept [credit cards, debit cards, checks, etc.].
3.3 Processing Fees: All processing fees are included in transaction.
3.4 Late Payment: Failure to pay by deadline may result in account suspension and item re-auction.
3.5 Non-Payment: Repeated non-payment may result in permanent ban from future auctions.

4. ITEM DESCRIPTIONS AND WARRANTIES
4.1 As-Is Condition: All items sold "as-is" without warranties of any kind.
4.2 Descriptions: Item descriptions provided by donors and believed accurate but not guaranteed.
4.3 Value Estimates: Retail values are estimates only and not guarantees of worth.
4.4 No Warranties: [Organization Name] makes no warranties, express or implied, regarding items.
4.5 Right to Withdraw: We reserve right to withdraw items before auction close if necessary.

5. ITEM FULFILLMENT
5.1 Pickup: Physical items must be picked up at [location] during [hours] by [date].
5.2 Shipping: Shipping available for select items at winner's expense.
5.3 Certificates: Gift certificates and experience certificates sent via email within [timeframe].
5.4 Expiration Dates: Certificates expire as stated in item descriptions. No extensions unless donor agrees.
5.5 Restrictions: Item use subject to restrictions, blackout dates, and terms in descriptions.
5.6 Non-Transferable: Items are generally non-transferable unless specifically stated.

6. TAX DEDUCTIBILITY
6.1 Charitable Contributions: Portion of purchase price may be tax-deductible as charitable contribution.
6.2 Fair Market Value: Deduction limited to amount paid exceeding fair market value of item.
6.3 Tax Receipts: We provide written acknowledgments for tax purposes as required by IRS.
6.4 Consult Tax Advisor: Bidders should consult their own tax advisors regarding deductibility.

7. LIMITATION OF LIABILITY
7.1 No Warranties: [Organization Name] disclaims all warranties regarding auction items.
7.2 Donor Responsibility: Donors are responsible for fulfilling certificates and experiences.
7.3 Maximum Liability: Our maximum liability is limited to amount paid for item.
7.4 No Consequential Damages: We are not liable for indirect, incidental, or consequential damages.
7.5 Event Safety: We are not responsible for injuries or property damage at events.

8. DISPUTE RESOLUTION
8.1 Governing Law: These terms governed by laws of [State].
8.2 Venue: Any legal action must be brought in [County, State] courts.
8.3 Arbitration: Disputes may be subject to binding arbitration at our discretion.
8.4 No Class Actions: You waive right to participate in class action lawsuits.

9. PRIVACY AND DATA USE
9.1 Information Collection: We collect information as described in our Privacy Policy.
9.2 Email Communications: By registering, you consent to receive auction-related emails.
9.3 Opt-Out: You may opt out of marketing emails but not transactional messages.

10. CODE OF CONDUCT
10.1 Respectful Behavior: Treat all participants, staff, and volunteers with respect.
10.2 Prohibited Activities: No bid manipulation, fraud, harassment, or disruptive behavior.
10.3 Account Suspension: We may suspend accounts for violations of terms or suspicious activity.

11. GENERAL PROVISIONS
11.1 Entire Agreement: These terms constitute entire agreement between you and [Organization Name].
11.2 Modifications: We may update terms at any time; continued use constitutes acceptance.
11.3 Severability: If any provision invalid, remaining provisions remain in effect.
11.4 Waiver: Failure to enforce any provision does not waive right to enforce later.

12. CONTACT INFORMATION
Questions about these terms? Contact us at:
[Organization Name]
[Address]
[Email]
[Phone]

BY CHECKING THE BOX AT REGISTRATION, YOU ACKNOWLEDGE THAT YOU HAVE READ, UNDERSTOOD, AND AGREE TO BE BOUND BY THESE TERMS AND CONDITIONS.

Customizing Terms for Your Organization

State-Specific Requirements

Adjust terms based on your location:

State Regulations:

• Charitable solicitation registration
• Prize notice requirements
• Consumer protection laws
• Specific disclosure mandates
• Contest vs. auction distinctions

Examples:

• California: Requires specific language for charitable purpose auctions
• Florida: May require seller's license disclosure
• New York: Has specific non-profit auction regulations
• Texas: Requires raffle vs. auction distinction

Research Requirements:

• Consult state attorney general website
• Review charitable solicitation laws
• Check local ordinances
• Consider multi-state compliance if online
• Have attorney review if uncertain

Online vs. In-Person Auctions

Adjust terms based on format:

Online-Only Auctions:

• Shipping and delivery policies critical
• Cybersecurity and data protection
• Electronic signature validity
• Remote bidding technology disclaimers
• Internet connectivity issues

In-Person Events:

• Event venue rules and safety
• Physical item inspection opportunities
• On-site payment processing
• Immediate item pickup
• Alcohol service disclaimers

Hybrid Auctions:

• Both online and in-person considerations
• Parity between bidding methods
• Technology failure backup plans
• Multi-location coordination

Industry-Specific Terms

Tailor to your organization type:

Schools and PTAs:

• Student participation rules
• Parent/guardian consent
• Age-appropriate items
• School facility policies
• Educational mission language

Religious Organizations:

• Mission-aligned restrictions
• Religious exemptions where applicable
• Faith community considerations
• Doctrinal compliance

Healthcare Nonprofits:

• HIPAA compliance if applicable
• Health-related item disclaimers
• Medical advice disclaimers
• Patient privacy protections

Arts Organizations:

• Artist attribution
• Reproduction rights
• Commission arrangements
• Authenticity guarantees

Legal Considerations

When to Consult an Attorney

Seek legal advice for:

Complex Situations:

• First major auction (over $50K expected)
• High-value items (over $10K individual)
• International bidders
• Unusual or risky items
• Previous legal issues or disputes

Special Circumstances:

• Raffle or sweepstakes elements
• Real estate or vehicle sales
• Firearms or regulated items
• Alcohol service at events
• Professional services requiring licenses

Risk Management:

• Prior lawsuits or claims
• Known item defects or issues
• Controversial items or causes
• Multi-state operations
• Corporate or foundation compliance

Attorney Review Process

If consulting attorney:

Preparation:

• Draft initial terms yourself
• Gather previous auction documentation
• List specific concerns or questions
• Research typical terms in your sector
• Budget for legal fees

Review Focus:

• Liability limitation adequacy
• Jurisdiction and venue clauses
• Specific state law compliance
• Risk areas for your organization
• Enforceability of provisions

Implementation:

• Incorporate attorney recommendations
• Document legal advice received
• Update terms as suggested
• Maintain attorney relationship
• Annual review for updates

Insurance Considerations

Terms should coordinate with insurance:

General Liability:

• Verify coverage matches terms
• Check policy exclusions
• Ensure adequate limits
• Consider umbrella policies
• Event-specific riders

Directors & Officers:

• Covers board decisions
• Protects personal liability
• Review coverage adequacy
• Report auction activities

Cyber Liability:

• Data breach protection
• Privacy violation coverage
• System failure coverage
• Coordinate with privacy terms

Updating Terms and Conditions

When to Update

Revise terms when:

Regular Schedule:

• Annually before auction season
• After legal consultation
• When regulations change
• Before major policy changes

Triggering Events:

• Legal dispute or claim
• New payment methods added
• Platform feature changes
• State law updates
• Insurance requirements change
• Previous terms proven inadequate

Best Practices:

• Version number and date
• Track changes document
• Board approval if required
• Archive old versions
• Notify affected parties if substantial changes

Notification Requirements

Communicating changes:

Prior Bidders:

• Email notification recommended
• Highlight material changes
• Provide effective date
• Allow comment period if major
• Require re-acceptance if substantial

Current Auction:

• Generally cannot change mid-auction
• Emergency changes need clear notice
• Bidders must agree to new terms
• Consider impact on existing bids

Documentation:

• Keep copies of all versions
• Record when changes made
• Document notification sent
• Save acceptance records
• Maintain audit trail

Best Practices

Writing Effective Terms

Plain Language:

• Avoid excessive legalese
• Use short sentences
• Define technical terms
• Organize logically with headers
• Use examples when helpful

Balance:

• Protect organization legally
• Remain fair to bidders
• Don't create unreasonable restrictions
• Build trust through transparency
• Maintain charitable mission tone

Clarity:

• State rules clearly
• Avoid ambiguity
• Be specific about deadlines
• Define consequences explicitly
• Use consistent terminology

Ongoing Management

Annual Review:

• Read terms completely
• Update outdated information
• Remove irrelevant provisions
• Add new policies
• Verify legal compliance

Staff Training:

• Ensure staff knows terms
• Train on enforcement
• Empower decision-making
• Document exceptions
• Consistent application

Record Keeping:

• Save all terms versions
• Archive bidder acceptances
• Document disputes and resolutions
• Maintain correspondence
• Support audit requirements

Conclusion

Properly crafted auction terms and conditions are essential for protecting your organization legally while creating a fair, transparent environment for bidders. By including all necessary provisions, requiring explicit bidder agreement, making terms easily accessible, and consulting with legal counsel when appropriate, you establish a solid foundation for successful charity auctions.

Take time to thoughtfully develop comprehensive terms that address your organization's specific needs and risks, customize them for your state's requirements and auction format, and review and update them regularly to ensure continued relevance and compliance. CharityAuctionsToday makes it easy to add and display your terms, helping you run professional, legally sound auctions that protect your organization while maintaining bidder trust and confidence. Well-written terms and conditions demonstrate your commitment to ethical practices and reduce potential disputes, allowing you to focus on your mission and fundraising goals.

Tom Kelly

Tom Kelly, TEDx speaker and CEO of CharityAuctions.com, helps nonprofits raise millions through auctions and AI. He hosts The Million Dollar Nonprofit podcast and inspires leaders to live their legacy, not just leave it.