While you are permitted to conduct standard auctions, in PA you need a Small Games of Chance license for Chinese Auctions, and Quarter Auctions are considered to be illegal.

This is probably good advice since both of these types of "auctions" involve a lottery to see which bidder wins the item.  Whenever someone has to pay to play, it is likely to be gambling and covered by local law.  A charity using such a technique should be sure to understand the law.  A lot of charities know the law and take the risk of disregarding it, but if someone wants to get you, there generally is no defense.   --Don Kramer