If you’re planning a silent auction to raise funds for a school, charity or community cause, you may be asking: do you need a license to hold a silent auction?
The answer depends on your location, the type of prizes you’re offering and how your auction is run. You don’t need a licence to hold a silent auction. However, depending on your location, you may need a licence to run a raffle.
In this guide, we’ll walk you through when a license may be required and how to ensure your auction meets local regulations.
Quick Overview: Do You Need a License to Hold a Silent Auction?
If you’re planning a fundraising event in Australia, it’s important to understand the legal requirements that may apply, especially when it comes to auctions.
- Silent auctions using donated or consignment items generally don’t require a licence.
- You may need a licence if you’re running a game of chance, such as a raffle or lottery.
- Even without a licence, fundraising activities must still comply with local regulations.
- Rules can vary by state or territory, so it’s important to check with your local authority.
Let’s break this down further below.
What Is a Silent Auction?
A silent auction is a fundraising activity where guests place bids on items without an auctioneer. Bids can be written on paper (bid sheets or ballot forms) or entered digitally through mobile bidding platforms.
Common auction items include:
- Holiday packages
- Experience vouchers
- Signed memorabilia
- Dinners, tours or classes
As long as participants are bidding for items of value (rather than entering a game of chance), most silent auctions are classified as fundraising sales and not gambling activities.
Do You Need a License for Silent Auctions in Australia?
In Australia, you generally do not need a licence to run a silent auction if you’re auctioning off tangible goods or services and bidding is based on value, not chance. This is especially true when the event is being held for a registered charity or non-profit organisation. Silent auctions that involve guests placing bids, either on paper or via a mobile platform, are typically classified as fundraising activities rather than gambling and fall outside the scope of gaming laws.
However, you may require a licence or permit if your event includes elements of chance, such as a raffle, lucky draw or game where winners are chosen randomly rather than through competitive bidding. Additionally, if you’re offering cash prizes or conducting any form of gaming activity, state-specific gaming or lottery permits may be necessary. It’s also important to ensure your organisation is properly registered and authorised to fundraise in your state or territory.
Regulations can vary slightly across Australia as follows:
- In NSW and VIC, silent auctions are exempt, but raffles must follow strict regulations.
- QLD, SA, WA and TAS have similar rules. Auctions are typically licence-free, but chance-based fundraising may need a permit, especially above certain prize thresholds.
Ultimately, while silent auctions are generally permissible without a licence, it’s always best to check with your local state authority or seek legal advice to confirm compliance with fundraising and gaming regulations for your specific event.
Fundraising Compliance: What You Still Need to Do
Even if you don’t need a license, your organisation must still meet legal fundraising obligations. This may include:
- Registering as a fundraiser with the state authority
- Issuing receipts for winning bids (especially for tax purposes)
- Keeping financial records of auction proceeds
- Displaying your organisation’s fundraising registration number
At Helping Hand Group, we provide templates, checklists and expert support to make sure your event runs smoothly and within legal boundaries.
Best Practices to Stay Compliant
While silent auctions are usually licence-free, it’s still important to follow best practices to ensure your fundraising event runs smoothly and ethically. Below are a few simple ways to stay compliant, no matter where you’re hosting your auction.
Clearly Display Terms and Conditions
Let guests know the rules for bidding, payment, item collection and refunds. This protects both your organisation and your supporters. Make the terms easy to access; display them on signage at the event and include them in printed or digital bidding materials.
Avoid Gambling Language
Stick to terms like ‘bidding,’ ‘auction,’ and ‘prize value’ instead of ‘draw’ or ‘lottery.’ Using gambling-related language may raise unnecessary concerns or even trigger regulatory requirements in some states.
Collect Accurate Donor and Bidder Info
Gather guest contact details for communication, invoicing and compliance reporting. Ensure your data collection complies with privacy laws, and consider using digital registration forms for efficiency and accuracy.
Use a Reputable Auction Partner
Partnering with a professional auction provider can help ensure your event runs smoothly and complies with local regulations. For example, at Helping Hand Group, we offer expert support to manage your auction, handle logistics and navigate legal and financial requirements with confidence.
Final Thoughts
So, do you need a license to hold a silent auction? Most likely not, as long as you’re auctioning items of value and not running games of chance. But compliance is still important. By understanding your local rules and planning ahead, you can keep your event both fun and legally sound.
Get Expert Help with Your Silent Auction Today
Planning your first silent auction and unsure about the legal side? You shouldn’t have to stress about licences and legal jargon when organising a fundraiser. That’s where Helping Hand Group comes in.
With over 25 years of experience, we’ve helped thousands of organisations run successful, stress-free auctions. Our team takes the guesswork out of compliance and provides hands-on support every step of the way.
We offer:
- Expert advice on licensing and legal considerations
- Support for both in-person and virtual auctions
- Consignment items with no upfront cost
- Customised bidding platforms (paper or digital)
- Clear recordkeeping and reporting tools
Need guidance? Call us on (+61) 2 8338 8755 or visit our Contact Us page. Let’s make your auction a success from start to finish—compliant, smooth and impactful.