Auctions     |     22 December 2025

Wondering What a Chinese Auction Is? Here’s Everything You Need to Know

Understanding this popular fundraising tradition and how you can make it work for your event

5 minute read

If you’ve ever attended a school fair, church social, or community benefit, you may have seen tables lined with colorful baskets and a line of people clutching strips of tickets. The buzz of conversation, the laughter as friends debate which prize is the best, and the suspense of waiting for the winning ticket to be called all create a lively atmosphere. For many groups, this type of event is a favorite because it feels more playful than a formal gala and more engaging than a simple raffle.

Plenty of people, though, find themselves asking the same question: “what is a Chinese auction and how does it work?” Even seasoned volunteers can feel unsure the first time they hear the term. Read on to learn everything you need to know. 

What is a Chinese auction

At its core, a Chinese auction combines the structure of a raffle with the strategy of an auction. Guests purchase a set number of tickets and then decide how to “spend” them by placing them in containers near the prizes they hope to win. The more tickets you place in a particular container, the greater your odds of being drawn as the winner. Traditional raffles, on the other hand, are straightforward: guests buy tickets, place them all into one drawing, and hope their number is the one pulled. There’s no choosing between prizes or spreading out tickets.

For example, if one basket has five tickets and another has fifty, the basket with fifty will be tougher to win. Guests enjoy weighing their options: go all in on one favorite prize, or spread their tickets around to increase their chances overall. The suspense of the drawing keeps the energy high, and winners feel a special thrill knowing their strategy paid off.

This format allows for flexibility in organizations of all sizes. Whether you have ten donated items or a hundred, the setup stays consistent, and guests instantly understand how to participate.

Why is it called a Chinese auction?

The phrase “Chinese auction” has been used for decades in schools, churches, and community groups, though the exact origin is unclear. In many regions—especially across the Northeast—the name simply became shorthand for a basket raffle where guests use tickets to try to win specific prizes. Today, you’ll also hear these events called “penny socials” or “tricky trays,” which describe the same format using more modern language. No matter the name your community uses, the structure and appeal of the event remain the same.

The difference between a Chinese auction and other auctions

A Chinese auction isn’t the same as the live and silent auctions you might picture from movies or charity galas. In a live auction, an auctioneer takes bids in real time, and the person willing to pay the most wins. In a silent auction, participants write down their bids, and the highest offer at the end of the event takes home the prize.

The Chinese auction uses chance instead of money as the deciding factor. Guests might only spend a few dollars but still win a high-value prize. That affordability makes the event accessible to a broader range of people and often encourages entire families to join.

This format stands apart because it’s approachable. No one has to be a seasoned bidder, and no one risks overspending. Everyone participates on their own level, and the atmosphere stays lighthearted.

How a Chinese auction works step by step

For guests, the process is straightforward. They first purchase a packet of tickets at the entry table. Pricing can be adjusted to fit the audience. For instance, one dollar per ticket or bundled deals that make larger purchases more appealing.

Once armed with tickets, guests wander the room, viewing the displayed baskets and prizes. Each prize has its own container, usually a box, bag, or bucket, where tickets are placed. Guests drop in as many tickets as they want, and then wait for the drawing.

When it’s time to announce winners, a volunteer pulls one ticket from each container. Since guests were able to decide where their tickets went, the process feels more interactive than a standard raffle. Instead of being handed a random prize, winners know they competed for something they actually wanted. That sense of control adds to the excitement and keeps participation high.

What makes a Chinese auction fundraiser appealing

Organizers often choose this type of fundraiser because it strikes a balance between fun and profit. Guests love the freedom of choosing where their tickets go, while organizations benefit from steady revenue across multiple baskets.

Unlike single-prize raffles, where a ticket buys only one chance, a Chinese auction fundraiser gives each supporter flexibility. They can test their luck on a big-ticket item or spread their chances across many smaller ones. That variety keeps people engaged from start to finish.

Another benefit is affordability. Even those with limited budgets feel comfortable buying a handful of tickets. Because participation feels easy and inclusive, attendance tends to be strong, which translates into more funds raised overall.

Planning your own Chinese auction

If you’ve been tasked with organizing one, start with the basics: secure a venue, set your ticket pricing, and gather prizes. Community halls, gyms, or church basements are ideal since they offer space to display baskets and accommodate crowds.

Recruit a few dependable volunteers. You’ll need people to sell tickets, answer questions, and oversee the prize drawings. Assigning clear roles in advance prevents confusion on the day of the event.

Ticket pricing deserves special attention. Some groups charge one dollar per ticket, while others sell strips of tickets at a set price. Bundling tickets encourages larger purchases and helps raise more money with less effort.

Prizes can be as simple or elaborate as your community allows. Donations from local businesses, themed baskets put together by classrooms, or handmade goods all work well. The key is variety: make sure there’s something that appeals to every guest.

Tips for maximizing participation and revenue

A Chinese auction thrives on momentum. Encourage guests to purchase more tickets by offering deals, such as “20 tickets for $15.” This approach makes people feel like they’re getting more chances for their money.

Make the event engaging by displaying baskets with clear signs that list what’s included. Guests should be able to scan the table and quickly understand the value of each prize. Promote the event ahead of time with photos on social media to build excitement.

Some organizers also include small instant-win games like a 50/50 raffle or door prizes to keep guests energized. These add-ons don’t take much effort but help sustain the festive atmosphere throughout the event.

Common mistakes to avoid

Not every auction runs smoothly, and certain pitfalls can dampen the experience. One of the most common is overpricing tickets, which discourages participation. Keeping ticket costs approachable is essential for encouraging guests to buy more.

Another mistake is offering too few prizes or failing to create variety. If all the baskets feel similar, guests may lose interest. A broad mix ensures that everyone finds something appealing.

Clarity also matters. Make sure instructions are easy to follow and containers are clearly labeled. Confusion at the ticket tables or during the drawing slows things down and frustrates participants. Finally, don’t underestimate the need for volunteers. Having enough staff on hand to manage sales, answer questions, and draw tickets ensures the event runs smoothly.

Chinese auctions in today’s fundraising world

Although the phrase “Chinese auction” remains widely circulated, many organizations are opting for alternatives like “penny social” or “tricky tray” to describe the same format. The heart of the event hasn’t changed, though. Communities still love the suspense, the affordability, and the chance to walk away with a prize they truly wanted.

What matters most isn’t the name but the impact. These events bring people together and generate meaningful support for schools, nonprofits, and local groups. For volunteers, that sense of accomplishment makes the effort worthwhile.

Moving forward with confidence

If you’ve been wondering, “What is a Chinese auction fundraiser?" the mystery is now cleared up. It’s a fun, affordable way to engage a crowd and raise funds for important causes. The rules are simple, the setup is manageable, and the results can be impressive.

If you’re ready to try one yourself, Silent Auction Pro makes the process even smoother with online raffle ticket sales and the ability to have the software pick the auction winner for you, reducing the number of volunteers required, not to mention personalized support. Request a free demo today and discover how easy it is to bring your fundraiser to life.