The Coal Dust Arts Collective CIC hopes the new space will support artists and musicians by providing them with access to studio space and workshops.
Jamie Ward, one of the directors, told the Chronicle their belief is that a thriving, creative community and mental wellbeing go hand-in-hand.
“This auction shows what creative talent has already come from our town, but it also shows support that goes way beyond the borough,” he said.
“We’ve already raised close to £2,000 - which is a really fantastic response.”
The auction has donations from artists, photographers and musicians from Barnsley and beyond.
‘Unique’ pieces such as a signed Tom Grennan CD and vinyl, Dean Ormston spiral city prints and a limited edition A3 print by photographer Chris Saunders featuring Jarvis Cocker, Alex Turner and Richard Hawley, are just some of the things up for grabs.
Graham Ibbeson, the Barnsley sculptor, has also donated an A3 Kes print.
Jamie added: “We’re really grateful to the artists who have donated to our auction, they are showing us what the future might look like, which is obviously really exciting and something a lot of us can look forward to.”