Bidding For A Good Cause?

Do businesses host charity auctions as a PR ploy or merely to meet their triple bottom line? And do individuals bid on charity auctions because charity begins at home or are there other underlying psychological factors at play?

Charity Auctions whether live, silent or online are all created with one goal in mind, to get all auction participants to bid on auction items so that all proceeds can be given to the specific charity. Although motives behind charity auctions may appear to be for a good cause, how true is the latter? 

Closer To Home

The Smile Artists Africa Annual Auction was started by Dr Brian Monaisa, Head of Plastic Surgery at Chris Hani Baragwanath hospital, in which independent artists would donate their creative works that would then be auctioned and all proceeds would go to the breast cancer survivors.  In the 2021, the auction was hosted by Stephen Welz & Co and the highest auctioned piece was sold for an impressive R110 000. Although this was a great initiative, did the bidders bid on this auction because they felt it was the right thing to do or did they participate in this auction because of selfish reasons?

Why do bidders bid?

According to Leszozyc et al 2010, individuals and businesses participate in charity auctions for these 5 reasons:

1. They are Altruistic. Individuals and businesses participate in charity auctions because they want to improve the welfare of the beneficiaries.
2. They are Selfish. Individuals and businesses participate in charity auctions because by donating they’ll feel proud or reduce feelings of guilt or sadness.
3. They are Doing The Right Thing. Individuals and businesses participate in charity auctions because they merely want to do the right thing.
4. They are Wealthier Than. Individuals and businesses participate in charity auctions because they want to receive public recognition.
5. They are Giving For The Sake Of Giving. Individuals and businesses participate in charity auctions because they enjoy giving for the sake of giving, even if they don’t win the auction. 

Ideally, we’d all like to believe individuals and businesses participate in charity auctions because it’s the right thing to do but this is not always the case. In so saying, the next time you participate in a charity auction ask yourself why, the answers might just surprise you.