If you’re in the fundraising world, it’s very likely you’ve heard of the term ‘Chinese auction’, or even organized a few yourself. However, if you’re just looking into ways to raise money, or recently received an invite to an NPO charity event, you may be confused as to what it entails.

As a fundraising approach, ‘Chinese auctions’ are extremely popular as they add a twist to the go-to charity auction. But the term itself has come under fire and carries heavy racial and historical connotations. What is it, why is it called a ‘Chinese auction’, and how does it work? We’ll answer these questions and more below.

What Is A Chinese Auction?

The ‘Chinese auction’ is a combination of two other popular fundraising events. 

First, you have a raffle which is an event that involves buying a raffle ticket and hoping that your ticket number is the one chosen to win a prize. 

The second component of the auction is a silent auction. In a silent auction, people place their bids in private or without others knowing their bids. They must try and bid the highest to beat others for the prize. 

The ‘Chinese Auction’ uses elements of both these fundraising types. 

Why Is It Called A Chinese Auction?

Now that you understand what the term is used to describe, let’s unpack where it originates and why it is socially unaccepted today.

The Term’s Origins

In the 19th century, the ‘Chinese auction’ grew in popularity as the number of Chinese immigrants in America also grew. The immigrants were faced with various socio-economic and political challenges, including housing struggles, low income, discrimination, and poor access to justice and legal services. 

This is the context out of which the term evolved. Chinese people and lives were aligned with ‘cheapness’ and lower class standards. The phrase ‘Chinese auction’, thus, became an American slang term to describe the affordable raffle-meets-silent auction fundraisers. This is one perspective of how the term originated. 

Another is that ‘Chinese’ was used to allude to the mystery and intrigue of the event, rather than the cheapness. However, both interpretations and uses of ‘Chinese’ as slang are loaded with racial discrimination and prejudices. 

Why The Term Is Not Acceptable

Using the word Chinese as a description of cheapness is racially charged and classist. It categorizes immigrants as such and encourages prejudices and stereotypes of Chinese people. 

On the other hand, positioning the word Chinese as an adjective for mystery and intrigue harks back to a time when Eastern nations were seen as “Oriental” places of mystery to be ‘discovered’. It comes from a place of racialism and colonialism. 

Today, institutions, organizations, and other public platforms and figures discourage the use of the term for these reasons. It is an outdated and politically incorrect term that has better and more socially aware alternatives.

Using alternate and racially inclusive terms to refer to Chinese and other Asian peoples and communities has particular importance now. 

Since the beginning of the COVID-19 pandemic, there has been an increased anti-Asian sentiment in the United States. Reducing the use of racially-charged phrasing is one way to combat such prejudice and encourage inclusivity and racial justice.

Alternatives To "Chinese Auction"

In consideration of the historical implications of this term, there are other names you should use for the same type of fundraising event:

• Lucky Number Dinner
• Pick-a-Prize
• Chance Auction
• Tricky Tray
• Penny Social

The last of these, the penny social, is the most popular alternative. But they all refer to the same raffle and silent auction-inspired event structure.

How Do Penny Socials Work?

If you’re looking to host a raffle-silent auction combo, here’s how they work:

1. Ticketing is the first consideration of your penny social. Guests must be able to purchase their raffle tickets for the event. These can be digital tickets or you can stick to physical ones. Either way, they must enable you to track where people place their bids.
2. With their tickets in hand (or on their devices), participants can browse through your available auction items. As they would in a silent auction, they can place their bids on the item they desire. Unlike a silent auction, however, the winner will not be the highest bidder. They will be selected at random. Guests simply drop their tickets into a raffle basket next to their desired item to place a bid.
3. You can limit the number of tickets in each basket or allow unlimited entries for all items. Restricting how many tickets can go into a single container ensures that not everyone bids on the same thing. Bids can be more evenly spread out.
4. A winning ticket can be selected from each item basket at the end of bidding. Announce the winners. They can collect their prizes immediately or wait until later. This depends on the order of activities at your event as well as the size or nature of the prize.

Why These Fundraising Events Are So Popular

Although penny socials have been around for a while now, they still bring tons of fun, excitement, and surprise.

Since they require a lot of organization, from venue and prize selection to ticketing and more, they’re not so common to experience. And the law of demand is simple - the rarer the experience, the more people want it for themselves!

So if you throw one of these penny socials or lucky number dinners, you’re guaranteed to attract a crowd.

Another reason for their popularity is that, if you play your cards right, you don’t have to spend an arm and a leg organizing it. You can find a free local community venue like a church, use your team’s existing skills for decorating, marketing and media coverage, and other tasks, and print cut-out tickets right from your office. 

The most you’ll spend will be on the prizes, although even those don’t have to be expensive and could even be donated by some local businesses. You just have to know what people would enjoy.

Conclusion

And the winner is… You! There is nothing to lose when organizing a penny social. It’s loads of fun, budget-friendly, and a fantastic experience for everyone involved. It is a wonderful and practical way to raise funds, too. Who said fundraising had to be all work and no play?