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Nonprofits, Raffles and the USPS - Keeping Everyone Happy
Return to News Items August 14, 2008It's a popular fundraiser for nonprofit organizations. Buy a ticket for their 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."
Nonmailable. That means you, the nonprofit, can't even upgrade to first class to get your mailing through.
So what can you do?
Again, 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?
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.
A simple wording change, and you're back to win-win.
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