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Re: How about consignments
In Response To: How about consignments ()

If it’s once a year at a convention and run by your 501(c)(3), the regulatory risk is much lower, but consignments still matter. Here’s the practical breakdown for Las Vegas / Clark County.

1. Charity auction at a convention (general rule)

A nonprofit charity auction where proceeds benefit the organization is typically exempt from the city’s auctioneer licensing requirement.

This works best when:

Items are donated

Proceeds go entirely to the nonprofit

It’s a fundraising event, not a business activity

Your once-per-year convention auction generally fits that pattern.

2. Where consignments complicate things

If you sell items owned by other people and pay them part of the proceeds, technically you are:

auctioning property belonging to others for compensation

That is what auctioneer licensing rules normally regulate.

However, in one-time charity fundraising events, local authorities usually look at the intent and structure:

Low concern if:

Charity keeps most of the proceeds

Sellers are supporters donating a portion

It’s clearly a fundraiser at an event

Higher concern if:

Sellers get most of the sale price

The charity only keeps a small commission

The auction resembles a commercial marketplace

3. The safest structure for consignments

Many charities use this approach:

Consignment donation agreement

Example:

Item sells for $1,000

Seller agrees 50% or more goes to charity

Charity pays seller the remainder

Important details:

Written agreement

Clear statement it’s part of a charity fundraising auction

Charity controls the auction process

This is very common at conventions and galas.

4. Online bidding portion

Hybrid auctions (in-person + online) are usually fine if:

The auction event itself happens at the convention

Online bidding is just another way to participate

The charity controls the sale

Platforms like:

GiveSmart

OneCause

Handbid

are commonly used for exactly this.

5. The real legal issue charities forget

The bigger risk than licensing is actually tax reporting:

If a consigned item sells:

The seller may owe taxes on their portion

The charity must properly account for the split

Large charities sometimes issue 1099 forms if payouts are significant.

6. Practical reality in Las Vegas conventions

Large conventions in Vegas run charity auctions constantly:

Comic conventions

Trade shows

gaming conventions

nonprofit galas

As long as it’s clearly a fundraiser and not an ongoing auction business, it’s rarely treated as a commercial auction operation.

✅ Your scenario (most likely OK):

501(c)(3)

once per year

convention fundraiser

hybrid bidding

charity receives meaningful proceeds

Messages In This Thread

Club Auction Update - Exciting news!
This IS Exciting..
Re: This IS Exciting..
Re: Club Auction Update - Exciting news!
Might check on this.
Re: Might check on this.
"City of Las Vegas"
Re: "City of Las Vegas"
Re: "City of Las Vegas"
Re: Might check on this.
No Jail for Barry..... I asked this
PS; Im sure that
How about consignments
Re: How about consignments
Yet another PS:
Another question to ask is:
Further Legal question include:

Copyright 2022 David Spragg