The simplest way for a group to handle a silent auction is to allow a starting bid. If someone spent $125 making an item, they ought to be allowed to ask that the $125 be the opening bid. If no bids above that, then the item should return to the giver.
Some items I make wouldn't have a starting bid, but the angel pillow (which I bid $5 on myself and got back) had a $9 pillow form in it. And that does not count the fabric & time.