News
Nonprofits, Raffles and the USPS - Keeping Everyone Happy
Return to News Items October 14, 2009It's a popular fundraiser for nonprofit organizations. Buy a ticket for its raffle, and you might win a big-screen TV. Or an exotic spa getaway. It's a win-win situation and everyone's happy, right?
Everyone except the Post Office. According to the Domestic Mail Manual, "Raffles that incorporate 'prize, chance and consideration' are considered lotteries under the statute and postal standards. 'Tickets' for such raffles are considered unlawful mail matter and remain nonmailable."
Well, not quite. You could sneak the mailing through using first class mail, because the USPS isn't allowed to open that rate of mail. But it doesn't make your raffle legal.
Happily, there is an easy, much cheaper fix that won't put your picture at the top of the Post Office's 10 Most Wanted List.
Remember, according to the USPS, when one or more of the three elements (prize, chance or consideration) are eliminated from the raffle, it does not constitute a lottery for postal purposes.
By eliminating prizes, for instance, you will satisfy the USPS that your fundraiser is not a lottery. Of course, it's tough to sell raffle tickets when the grand prize is ... nothing.
Same goes for chance. How do you eliminate that when it's an integral part of drawings? We guess you could only sell one ticket.
The easiest change comes down to eliminating "consideration." This is done by not requiring a person to pay a fee (or donation) for one of your raffle tickets. Make it very clear, too. Include a check box on the ticket that says: please enter my name in the drawing. I do not wish to make a donation at this time. The good news is most people will not take you up on that offer.
A simple wording change, and you're back to win-win.
Return to News Items