Fundraising Auctions: Issues and Impact on Galleries

This Professional Guidelines topic is intended to discuss the impact of fundraising auctions on galleries both financially and in their role within the arts community.

It includes questions to be asked prior to donating to fundraising auctions and suggestions to implement after donating work. There is also a list of recommendations for how galleries can maximize any benefits generated by their participation in an auction. Ultimately, we believe, the behavior of galleries and artists can influence the way fundraising auctions are conceived and conducted.

This is one of four Professional Guideline documents about Fundraising Auctions, each addressing the topic from a different perspective.
            Fundraising Auctions: Issues and Checklist for Artists
            Fundraising Auctions: Issues and Impact for Galleries
            Fundraising Auctions: Issues and Recommendations for Collectors
            Fundraising Auctions: Issues and Alternatives for Art Organizations

These documents have been written to assist all members of the arts community. You are encouraged to read all four to see a thorough discussion from all perspectives. Fundraising auctions can be a successful way for arts organizations to raise needed funds. However, auctions can have a significantly negative impact on the art community — the very constituency they wish to support.

The survival of galleries within the arts community can be seriously compromised because fundraising auctions have gained a reputation for selling artwork at considerably less than retail value. Fundraising auctions may ultimately harm galleries, collectors and individual artists by siphoning off gallery sales, competing with art exhibitions, infringing on exclusive representations, and reducing the ability of galleries to sustain a viable business.