If you're planning your first fundraising auction or event, it's easy to feel overwhelmed by the terminology. Suddenly you're hearing about silent auctions, consignment prizes, Stripe, real-time bidding, mobile bidding and digital raffles - and it's not always obvious what these terms mean or why they matter.
The good news is that you don't need to become a fundraising expert overnight. Once you understand the basics, you'll find it much easier to compare fundraising platforms, choose the right event format and make informed decisions that help you raise more.
This guide explains the most common fundraising terms in plain English, whether you're organising a charity gala, school fundraiser, community event or online auction. Think of it as your fundraising dictionary - one you can return to whenever you come across unfamiliar jargon.
Key Terms
If you're new to fundraising, these are the terms you're most likely to encounter when planning an auction, raffle or fundraising event.
Understanding these core concepts will make it easier to compare fundraising platforms, communicate with suppliers and choose the right approach for your event. Start here if you're looking for the essentials before diving into the more comprehensive glossary below.
Fundraising Auction
Online fundraising auctions raise money for charities, non-profits and community causes. Items such as beauty hampers, jewelery, sports memorabilia and vacations are sourced* and made available for people to bid on.
Bidding can take place online or at a live event. The highest bidder wins the prize.
*see ‘sourcing fundraising prizes’ below
Online Silent Auction Platform
An online auction platform is a fundraising auction that takes place either 100% online or in support of a live fundraising event.
Participants can bid for items in the auction via their mobile device. Bids are made in real-time.
Auction participants can be onsite at an event or bidding at home in their PJs!
Online Fundraising Auction Website
A dedicated website where the digital fundraising auction takes place.
The website has all the information your supporters and donors need to help your cause, including: prize catalogue, auction, cause information and fundraising targets.
A service provider like GalaBid will give you access to everything you need to set up your personalized site.
An auction website platform may have limited mobile compatibility. Double check with your provider to make sure the set-up is what you need. GalaBid’s platform is both mobile and desktop compatible.
Sourcing Fundraising Prizes
Self-sourced
This is how fundraisers get prizes for their auction. It can take a bit of time to self-source prizes as you’ll need to canvas the local community, businesses and supporters for donations.
Consignment
An alternative is to use a consignment service. Consignment means the prizes have been sourced from a provider (like GalaBid). Using consignment prizes can be faster and easier than self-sourcing items and it can give access to hard-to-source items, like holidays or memorabilia.
Cost structures differ depending on the supplier. Galabid offers fundraising prize packages on a no-risk basis. If the prize doesn’t sell, there’s no cost to the organisation.
Fundraising Prize Catalogue
Online auction platforms will often have prize catalogues available online for bidders to view. To make it easy the digital catalogue should also allow people to bid on the items.
Cash Donation
Many fundraising auctions will have a cash donation element. It’s a fast and easy way for people to help a cause.
Supporters can make a direct donation to the charity or non-profit via an online donation platform.
Digital Raffle
An online raffle is just like a traditional raffle, minus the paper and with added ease! Raffle tickets are bought using an online link and 'tickets' are issued via SMS or email.
The draw takes place using an online and secure automated system that picks winning tickets at random. Winners are immediately notified via SMS or email. Real-time updates are available to let people know important milestones, such as opening and closing times.
Real-Time
Real-time means there’s no delay between an action starting and the result. For example, when someone makes a bid on an auction prize, that bid is registered the moment it happens.
Or, if a fundraiser wants to let people know that the auction is closing in five minutes a real-time notification will pop-up on participants’ devices straight away.
The best online auction platforms will have no delay between the bid being made and logged. This is especially important for high volume bids where competition is fierce!
Starting Bids/Minimum Bids
To make sure prizes don’t undersell, auction organisers set a starting bid or minimum bid e.g. a luxury holiday to Hawaii may have a minimum bid of $1,000.
This still enables bidders to get a great deal but also ensures the charity or cause can generate a healthy return from the sale.
Overtime
If lots of people are bidding for a particular prize and you want to keep the auction running a little longer, you can hit the overtime button.
Overtime can run for as long as you like. An extra 5-10 minutes is probably all you’ll need. Much longer and you may exhaust your bidders’ good will!
Stripe
You may be required to set-up a Stripe account to facilitate payment from your fundraising platform to your organisation’s account. Stripe is a secure payment gateway that ensures every cent arrives at its destination safely. It’s super easy to set-up a Stripe account, all that’s needed is a form of ID, e.g. driver’s licence, and a bank account.
Full Fundraising Glossary
Fundraising has its own language, and as events become increasingly digital, there's more terminology than ever to navigate. From donor engagement and mobile bidding to peer-to-peer fundraising and payment processing, understanding these terms will help you make informed decisions and get more from your fundraising efforts.
Our A–Z fundraising glossary explains the most common words and phrases used by charities, schools and community organisations in clear, straightforward language. Whether you're planning your first fundraiser or simply need a quick refresher, you'll find everything you need here.
Jump to a section: A–C · D–G · H–L · M–P · Q–T · U–Z
A–C
Analytics
Data and metrics used to track fundraising performance - such as total funds raised, donor participation, and bidding activity.
Annual Giving
Donations collected from supporters on a recurring yearly basis, typically used for general operating support rather than a specific project.
Appeal
A direct request for donations, usually made through a marketing campaign, letter, email, or during an event.
Artificial Intelligence (AI)
Technology that helps automate or enhance fundraising tasks using machine learning and natural language processing. In fundraising, AI is commonly used to generate auction item descriptions, create marketing content, improve campaign planning and analyse fundraising performance, helping organisers save time and work more efficiently.
Auction
A fundraising format where supporters bid on donated items or experiences, with the highest bidder winning. See also: Silent Auction, Live Auction.
Campaign Health Check
A review of a fundraising campaign's setup - pricing, item descriptions, promotion - to identify ways to improve results before or during a campaign.
Charity Auction
An auction run specifically to raise money for a charitable cause, often using donated or consignment items.
Compliance (PCI Compliance)
Adherence to security standards (Payment Card Industry Data Security Standard) that protect donor payment data during transactions.
D–G
Direct Donation
A one-time or recurring financial contribution made straight to a nonprofit, with or without attending an event.
Donor Management System (DMS)
Software nonprofits use to track donor information, giving history, and communication preferences.
Donor Engagement
The strategies used to keep donors connected to and involved with a nonprofit's mission over time.
Fundraising Gamification
The use of game-like elements - leaderboards, progress bars, donation thermometers - to increase donor participation and engagement.
Gift Matching
A corporate program where a company matches donations made by its employees, effectively doubling the gift.
H–L
Hybrid Fundraiser
An event that combines in-person and virtual participation, allowing remote supporters to take part alongside attendees on-site.
Impact Report
A summary shared with donors explaining how funds raised were used and what they achieved.
In-Kind Donation
A non-monetary contribution - goods or services rather than money, donated to support an event or cause.
Leaderboard
A live display showing top donors, highest bidders, or progress toward a fundraising goal.
Live Auction
An auction led by a host or auctioneer, with bids called out and accepted in real time, typically the centerpiece of a gala or in-person event, used for a small number of high-value items.
M–P
Matching Gift
See Gift Matching - a corporate program that matches employee donations.
Mobile Bidding
The ability for auction participants to place bids from a smartphone or tablet rather than a paper bid sheet.
Nonprofit CRM (Constituent Relationship Management)
Software used to manage donor relationships and track giving history, similar to a Donor Management System.
Peer-to-Peer Fundraising (P2P)
A fundraising model where individual supporters create their own fundraising pages and ask their personal networks to donate on behalf of a cause.
Pledge
A commitment to donate a specified amount at a future date, rather than paying immediately.
Progress Bar
A visual indicator showing how close a campaign is to reaching its fundraising goal.
Q–T
QR Code (Quick Response Code)
A scannable code that links directly to a donation page, ticket purchase, or bidding page — commonly printed on event signage or bid sheets.
Recurring Donations
Ongoing contributions made automatically on a set schedule, such as monthly or annually.
Silent Auction
An auction where bids are placed privately - on paper or through a digital platform - rather than called out publicly, with the highest bid at closing time winning. Read the full explainer: What Is a Silent Auction?
Sponsorship
Financial or in-kind support provided by a business or individual in exchange for visibility or promotion at an event.
Ticketing System
A platform used to sell and manage event tickets, including pricing tiers, check-in, and attendee tracking.
Tax Receipt
A document given to donors confirming their contribution, used for tax deduction purposes.
U–Z
Upselling
Encouraging supporters to increase their donation or upgrade their ticket during the checkout process.
Virtual Fundraiser
An event held entirely online, with auctions, raffles, or donations all taking place digitally rather than in person.
Volunteer Management
The process of recruiting, organizing, and communicating with volunteers supporting an event or campaign.
Winning Bid
The highest bid placed on an auction item at the moment bidding closes.
Fundraising Terminology FAQ
What is fundraising terminology?
Fundraising terminology refers to the specific words and phrases used by nonprofits, charities, and event organizers to describe donation methods, event formats, and donor management practices - such as "pledge," "in-kind donation," or "peer-to-peer fundraising."
What's the difference between a silent auction and a live auction?
A silent auction collects bids privately (on paper or online) over a set period, while a live auction is run in real time by a host or auctioneer calling out bids aloud.
What does "in-kind donation" mean?
An in-kind donation is a non-cash contribution - goods, services, or expertise - given to support a cause, as opposed to a monetary gift.
In Summary
Fundraising has its own language, but it doesn't have to be confusing. Once you're familiar with the key terms, planning your next auction, raffle or fundraising event becomes much simpler.
Whether you're comparing fundraising platforms, deciding how to source prizes or setting up your first online auction, understanding the terminology helps you make better decisions and avoid common mistakes. As new fundraising tools and technologies continue to emerge, having a solid grasp of the basics will give you confidence to try new ideas and maximise your fundraising success.
