Understand the three amounts.
The estimated value describes the item or experience; it is not necessarily the price it will achieve. The minimum bid is the opening amount agreed for your auction. The reserve is the amount payable to OFG when the item sells.
Under the OFG model, your charity keeps an agreed portion of the minimum bid plus everything raised above it. Ask for these figures in writing rather than assuming that the minimum bid and reserve are identical.
Know what happens when an item does not sell.
Our consignment program has no upfront inventory costs and no charge for unsold items. At staffed events, our team takes unsold OFG items back. Confirm logistics for any different event arrangement.
This makes the inventory model easier to budget, but it does not replace planning for your wider venue, catering, software, or event costs.
Ask the right questions before agreeing.
Request the complete package description and terms before publishing it. Confirm the responsibilities that sit around the item, including staffing, checkout, reporting, and fulfillment.
- What does the charity retain at the minimum bid?
- Which services are included in this proposal?
- Who collects payments and when is settlement due?
- Who handles returns, delivery, and winner questions?
A worked example: one lot, three possible outcomes.
Illustrative example: a lot has a $1,000 minimum bid and an $800 reserve payable to its provider. The figures below show how the proceeds change with the sale amount. Your event’s minimums and reserves are set out in your OFG proposal.
| Outcome | Amount payable to provider | Amount retained before other agreed costs |
|---|---|---|
| The item does not sell | $0 | $0; there is no inventory purchase charge for the unsold OFG item. |
| The item sells for $1,000 | $800 | $200, the difference between the accepted sale and the reserve. |
| The item sells for $1,600 | $800 | $800, including the full $600 bid increase above the minimum. |
Why the minimum and reserve should not be confused.
The minimum tells a bidder where the auction starts. The reserve payable to OFG tells your finance team what is due when the item sells. In the example, those figures are different because the charity keeps an agreed portion of the minimum. The actual amounts and share for your event belong in your proposal.
The useful calculation is accepted sale amount minus the agreed reserve, then minus any other applicable agreed costs when calculating the event’s net proceeds. Do not use estimated retail value in that calculation. A value estimate may provide context for an item, but it is not money the charity has received.
Read the agreement from beginning to end.
Before you approve a lot, make sure its commercial terms and its fulfillment terms are both clear.
- Confirm the minimum, reserve, charity share, and whether any service, processing, or delivery charges apply.
- Confirm who may approve a lower starting amount or a repeat sale; never assume either is allowed.
- Determine who collects payment and what happens if a winning bidder does not complete it.
- Agree the reporting and settlement schedule for sold items.
- Clarify who removes or returns unsold items under your event arrangement.
- Keep the current package conditions with the financial record.
Resolve the questions behind “risk-free.”
Does an unsold item reduce our event budget?
OFG’s unsold consignment items cost your organization nothing. Your wider event may still have venue, catering, platform, or other agreed costs. Evaluate those separately rather than interpreting the inventory model as a promise that every event expense disappears.
Is consignment automatically more profitable than a donation?
No individual item or result is guaranteed. A donated item has no supplier reserve, while a consignment lot may add an opportunity you could not otherwise source. Compare audience fit, likely interest, terms, and the amount retained rather than assuming either category always wins.
Bring your questions. We’ll start there.
Tell us what you have in place, what you are still deciding, and where your team needs support.
Ask about your consignment terms