Tammy-
Stepping back from this specific event, I strongly recommend that your team develop and formalize a Third-Party Fundraising Policy. Even well-intentioned supporters can inadvertently create compliance, reputational, or donor-relations issues when organizing fundraising activities without guidance from the Advancement Office. Most institutions require external parties to submit an application, with Advancement retaining final approval authority before any fundraising activity may proceed.
Auctions, in particular, introduce a range of complexities that other fundraising events often do not. You'll need clear criteria for what merchandise may be solicited and sold. If local businesses are being approached, your Corporate & Foundation Relations (or equivalent) office will likely need to be involved. Sales-tax obligations (where applicable) must be addressed, in-kind contribution acknowledgments generated, and proper quid-pro-quo (QPQ) disclosures issued. These details add up quickly.
It's also important to recognize that sometimes the appropriate response truly is to "just say no." Allowing external groups to operate independently-on their own timelines and with their own messaging-can unintentionally undermine broader fundraising strategies. Annual giving often suffers most, as some donors assume they've already fulfilled their philanthropic commitment.
I'm happy to talk through this with you offline next week if that would be helpful.
With respect to this particular event, I would encourage you to consult with legal counsel early. Fundraising efforts tied to a single athletic team can raise concerns under IRS "charitable class" rules; if the beneficiary group is too narrow, contributions may not be deductible. Additionally, IRS rules governing gifts related to athletics are especially strict-if a payment results in seating priority, points, or similar benefits, the entire amount is treated as non-deductible income rather than a charitable gift.
On payment methods, I suggest coordinating closely with your CFO. While I generally advise against restricting donor payment options, your finance team will (rightly) have strong views regarding PCI compliance. This may also be a good opportunity to evaluate peer-to-peer options such as Venmo and PayPal/Apple Pay, if not already in use.
Finally, receipts should be issued consistent with your standard QPQ practices. Keep in mind that if a bidder pays an amount at or below the clearly disclosed fair market value of an item, no charitable receipt should be issued.
For reference, the IRS provides a helpful overview of compliance considerations for charity auctions here:
https://www.irs.gov/charities-non-profits/charitable-organizations/charity-auctions