Questions that come to mind include: Are they loss leader because the outfitter isn't getting enough business to begin with (contrasted with many outfitters who through reputation and simple word of mouth are booked a year or two in advance and have no need for loss leader hunts?). Are they simply a benevolent gesture done in good faith for a worthy cause or charity? Etc.
All valid questions and the answers depend on many factors that must be considered..
Most, if not all the major sportsman's convention shows usually require a donation from new outfitters in order to get booth space. This doesn't mean that the outfitter isn't reputable or that the hunt can't be a good value, but there is a misconception that organizations like the SCI, DCS, etc.,. vet these donors.. They do not, so you must do your research and contact the outfitter to get all of the details before bidding.
Some outfitters do offer donations hunts primarily as a promotional tool, however, many very reputable outfitters also offer donation hunts each season to genuinely support the host organizations. With a little research you would actually find many extremely reputable outfitters with excellent reputations and a waiting list that regularly offer donation hunts. Host organizations like the SCI, DSC, HSC, etc., actually prefer donations from these types of outfitters over the entry level donations because they often generate the highest bids precisely because they are from desired outfits with excellent reputations. The higher the hunts goes for, the more the host raises..
There is excellent marketing value in hunt donations for both new outfits trying to generate business as well as established outfits that are donating for both brand recognition as well as lending their support to the host conservation organization. This is especially true of the outfitters willing to offer donation hunts at 100% donation with no reserve meaning that 100% of the winning bid goes to the host organization. Not all donations are 100%, and some also have a reserve bid that must be met.. How much goes to the host organization is something that should be asked especially if your main interest is supporting the conservation efforts of said organization through your donation.
I personally have gone on several donation hunts both in the US and internationally, and I have been very pleased with the outcomes. However, I also did my due diligence in researching the outfitter, contacting them prior to the auction and asking them all the relevant questions. I end up passing on the majority of the hunts that interest me because they don't meet my needs or expectations for all the various reasons, but there is some excellent value to be had if you do your homework prior to the bidding.
The worst stories I have heard nearly all have the same common denominator which is that the winning bidder had a few too many cocktails at the fundraising dinner and bid on a hunt without researching the outfit to later find out they did not get the deal they thought they did... If you make that mistake, you need to settle for the satisfaction of supporting what is hopefully a good cause and chalk it up to a lesson learned.