Do I need a license to hold a benefit or charity auction?

It depends on your state and the type of event. In some states, volunteers or nonprofits running their own charity auction may be exempt from auctioneer licensing, while in others a licensed auctioneer may be required to call the sale. Some states have specific exemptions for charitable events, and the details vary.

Raffles, drawings and games of chance that often accompany fundraising events are frequently regulated separately, and the rules can be strict. Alcohol service at events may also require permits.

Check with your state's auctioneer licensing board and the agency that oversees charitable gaming before your event. Many professional benefit auctioneers know these rules well and can help you plan a compliant event that also raises more money. For questions about tax receipts for donors and buyers, consult a tax professional.