Short answer: In a basket auction, each class or committee builds a themed basket from donated items and guests bid on it; the highest bid wins. Because no chance is involved, it's an auction, not a raffle. A "basket raffle" or tricky tray, where people buy tickets and a drawing picks the winner, is a game of chance governed by state gaming law and often needs a license. Keep it to bids, publish each basket's estimated value, and thank donors with receipts that describe items without valuing them.
A basket auction is the most approachable kind of school auction. Each class, grade or committee fills a basket around a theme, the baskets go on tables at an event families already attend, and guests bid. It needs no auctioneer and no gala, and almost every family can contribute something. This guide is part of school fundraising ideas compared and goes deeper on baskets than the general guide to school auctions and galas, which covers live auctions, galas and a full 16-week timeline. Start with the one question that decides which rules apply to you.
Basket auction or basket raffle?
The same table of baskets can be run two ways, and the law treats them very differently. In an auction, the highest bidder wins; skill and willingness to pay decide. In a basket raffle (also called a tricky tray, a penny social or a chance auction), people buy tickets, drop them in a cup beside each basket and a drawing picks the winner. That has a prize, chance and payment to enter, which is the usual legal test for a raffle.
States regulate the raffle version directly. New Jersey is a clear example: an organization must first register with the state's Legalized Games of Chance Control Commission, which registers only qualified groups such as educational, charitable and civic organizations, and only then apply to the town for a license for each game. One municipal clerk's office, the Village of Ridgefield Park's, tells clubs, organizations and PTAs that this covers 50/50s, tricky trays and basket raffles. Other states set their own terms on who may run a raffle, how often and with what license. Your state attorney general's office or gaming regulator can say what applies before any ticket is sold.
Watch for hybrids that bring chance back in:
- "Bid with tickets." If people buy tickets and then use them to "bid," and a drawing still picks the winner, it's a raffle.
- A mystery basket or a grab bag sold at a fixed price, where buyers don't know which basket they'll get, adds an element of chance. Ask before including one.
- A drawing among all bidders for a bonus prize turns paid bidding into a chance to win. Leave it out, or make it free to enter for everyone present and check that your state treats it that way.
Districts can limit both versions, with their own rules on raffles on school property and approval for auctions. Check the district first; the district approval guide explains what to ask.
Class and theme basket ideas
A theme gives families direction and makes the finished basket look complete. Assign each class a theme early, and avoid two classes building near-identical baskets.
| Theme | What goes in it | Works well for |
|---|---|---|
| Family game night | Two or three board games, a card game, popcorn, a pizza gift card | Any grade; easy for families to contribute one item each |
| Movie night in | Blanket, popcorn bowl, candy, a streaming or theater gift card | Younger grades |
| Reading nook | Grade-level books, a book light, bookmarks, a bookstore gift card, a cozy pillow | Elementary classes |
| Teacher appreciation | Classroom supplies, a coffee shop gift card, a tote bag, a note from the class | Bought by families as a gift for a teacher; check district rules on gifts to staff |
| Art studio | Sketchbooks, markers, paints, a framed piece of class art | Classes that make a group art project |
| Backyard and garden | Seed packets, gloves, small tools, a garden center gift card | Spring events |
| Sports fan | Team gear, a ball, water bottles, tickets donated by a local team | Middle and high school |
| Local favorites | Gift cards and products from businesses near the school | Classes with parents who own or work at local businesses |
| School experience | Reserved seats at a concert, lunch with the principal, a front-row graduation spot | Upper grades; get staff agreement first |
Leave alcohol and anything restricted to adults out of school baskets unless the event, the venue and the district allow it and your state's alcohol rules permit it to be auctioned. A single high-value experience basket, such as a cabin weekend, can anchor the table; the auction item guide covers what tends to sell at higher price points.
Collecting items from families
- Name a basket parent for each class
One parent per class collects items, keeps the list of who gave what, and assembles or hands off the basket.
- Send one letter with the theme and a wish list
List specific items at several price points, a drop-off box location and a deadline about two weeks before the event. Say that contributions are optional and that a $5 item is as welcome as a $50 one.
- Accept cash toward the basket
Some families prefer to give a few dollars. The basket parent buys the missing items and keeps the receipts for the treasurer.
- Ask local businesses for one item each
A business is more likely to give a gift card or product for a specific basket than for a general request. Use the auction item request letter and log every ask so no business is approached twice.
Building and valuing each basket
Presentation sells a basket. A sturdy container that is itself useful (a laundry basket, a cooler, a wagon, a storage bin) adds value and holds items securely. Wrap it in clear cellophane, put the largest items at the back and attach a contents card.
Record each donor's own estimate of what they gave and total it for the card. Gift cards are valued at face value, and their expiration dates go on the card. Publishing the estimated value helps bidders and supports the receipts described below. The auctions guide suggests opening at about a third of the stated value with round increments; with baskets, keep increments small enough that a family can raise the bid comfortably.
Example A third-grade family game night basket holds items with a total estimated value of $165. It opens at $55 with $5 raises. Six families bid it up to $140. The class's families gave items they valued at $165, and the parent group nets $140 from the basket. With 12 baskets averaging $120 in winning bids, the table raises 12 × $120 = $1,440.
Running the bidding
Basket auctions are usually silent: a bid sheet sits in front of each basket and closes at a set time. Give each household a bidder number at the door so names don't appear on sheets, which protects privacy and makes checkout faster.
Printable basket bid sheet
Print one per basket. Bids must go up by at least the minimum raise. The last valid line at closing wins.
| Basket | Details | |
|---|---|---|
| Basket number and theme | ||
| Estimated value | ||
| Opening bid / minimum raise | ||
| Bidder number | Bid amount | Time |
| Closed by (initials) and time | ||
- Write the rules on every sheet: minimum raise, closing time, and that illegible or out-of-order bids don't count.
- Close in stages if you have more than about 20 baskets, one table at a time, with a few minutes' notice.
- Have a volunteer at each table at closing to draw a line under the last bid and initial the sheet.
- Collect payment the same night before baskets leave the building. Two people count cash and checks and record them on the cash count sheet; card payments are reconciled the next day. The cash handling guide covers deposits.
Basket tables fit well inside a larger event. A school carnival or a spring concert brings the bidders, and the baskets add income without adding a separate night.
Receipts
A basket auction follows the same IRS receipt rules as any school auction, set out in the auction guide's receipts and taxes section and in thanking donors and the IRS rules. In short: thank item donors with a description of what they gave ("a board game and a $25 pizza gift card") and no value, and give each winning bidder a receipt showing the amount paid and a good-faith estimate of the basket's value, since IRS Publication 526 says a buyer can deduct only the part paid above that value. When a winning bid is over $75, Publication 1771 makes that written statement a requirement, not just good practice. The donors' estimates on the contents card are a starting point; the treasurer should check they look like fair market value. Whether basket sales are subject to sales tax depends on your state; ask your treasurer or state revenue department.
This page summarizes IRS publications and the general distinction between auctions and games of chance; it isn't legal or tax advice. If any part of your basket table involves tickets, drawings or chance, your state attorney general, gaming regulator or licensing office decides what's allowed. Your district sets its own approval rules, and your treasurer or a tax professional can confirm receipt wording and sales tax.
Sources
- Publication 1771: Charitable Contributions, Substantiation and Disclosure Requirements (Rev. 11-2023), Internal Revenue Service (accessed 2026-10-30)
- Publication 526: Charitable Contributions (2025), Internal Revenue Service (accessed 2026-10-30)
- Registration, New Jersey Legalized Games of Chance Control Commission, Division of Consumer Affairs (accessed 2026-10-30)
- Raffles, Village of Ridgefield Park, New Jersey (accessed 2026-10-30)
Frequently asked questions
What is the difference between a basket auction and a basket raffle?
In a basket auction, guests bid and the highest bid wins, so no chance is involved. In a basket raffle or tricky tray, people buy tickets and a drawing picks the winner. That combines a prize, chance and payment, which makes it a game of chance under state law. Raffles often need registration or a license, and some districts don't allow them on school property.
What are good class basket ideas for a school auction?
Family game night, movie night in, a reading nook, art studio, backyard and garden, sports fan, local favorites and a school experience basket all work well. Give each class one theme, send families a wish list at several price points, and use a useful container such as a cooler or wagon so the basket looks complete.
Is a tricky tray legal for a PTA?
It can be, on your state's terms. A tricky tray picks winners by drawing tickets, so it's regulated like a raffle. In New Jersey, for example, a group must register with the state's Legalized Games of Chance Control Commission before applying to its town for a raffle license, and a municipal clerk's office there lists tricky trays and basket raffles among the games this covers. Check your state's rules and your district's policy before selling any tickets.
Should we put a value on the receipt for a donated basket item?
No. IRS Publication 1771 says the acknowledgment for donated property includes a description, but not the fair market value, of the item. Record the donor's own estimate for your contents card and records, describe the item on the thank-you, and say whether the donor received anything in return.
How much do basket auctions raise?
It depends on the number of baskets, what's in them and how many families attend. Winning bids can land below a basket's estimated value, so count on the bids rather than the stated values. Add up a realistic winning bid for each basket and compare it with your costs in the profit calculator before you set a goal.