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I've done a lot of charity auctions and here's what I've found:
The best ones are the expensive ones (definitely not the $50 church dinners,)
The best ones also have lots of artists and other donors competing to get in, and they turn plenty of donors away.
Being in the live auction is better than the silent auction.
Setting a solid minimum bid is a good idea and you're right that it unfortunately devalues your reputation if the item sells for much less than that. Did lots of items go for less than the price at which the auctioneer opened the bidding? These are hard times and people understand that.
Once the auction gets underway a lot of promises go by the wayside: whether you'll get in the live or silent auction, what table you'll be at, minimum bids, etc.
Even with all of that certain very high end auctions are still worth it for the advertising.
If I were you I would talk to the auction organizers/auctioneer about what happened and see if you can come up with a workable plan for next year. I'm not sure a written contract would make much difference though. If they broke it and you made a fuss, you certainly wouldn't be allowed to donate the next year. If this is the best auction in town you might not want to burn that bridge.
With auctions I think it's pretty much pick the best ones and then take your chances.
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