raffle fundraisers what you need to know 1. first of all - thank you! we sincerely appreciate all...

Raffle FundraisersWhat you need to know

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First of all - thank YOU!

• We sincerely appreciate all the time and resources you put into planning and conducting your team fundraising activities to support the important work of the American Cancer Society.

• If you decide to use a raffle to meet your team’s fundraising goals, we want to support you to ensure success and compliance with all regulations.

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First of all - thank YOU!

• We will provide you with– Training– A packet of resources including materials

such as – ticket and rules of the game templates, a quick reference guide, reporting tools, forms, list of deliverables, etc.

– Answers! If we don’t know, we will find out.

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Today’s agenda

• What is a raffle?• Why do we need training?• What are the rules?

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What is a raffle?

• The following three factors determine whether an activity is a raffle.– A ticket is purchased (financial

consideration)– Winners are selected randomly (all

participants have an equal chance of winning)

– A prize is awarded• If the activity is a raffle – there are rules

that must be followed.5

What is a raffle?

Note:• No other forms of gambling.• No casino style games or bingo.

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Prohibited!

Why do we need raffle training?

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• As we have increased our raffle activity in Washington, compliance requirements and rules have increased as well.– Agency and state laws: which govern

licensing, conducting, prizes, and reporting– Federal laws: which govern taxes– American Cancer Society: practices to

ensure stewardship and protection of our reputation

And we must follow them all!

Our reputation is our most important asset!• Illegal activity or non-compliance impacts

our ability to raise money in the future.• Illegal activity or non-compliance increases

expenses (significant fines, staff time, legal, audit, etc.).

• Illegal activity involving fraud reduces the money raised by the American Cancer Society and our millions of supporters.

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What are the rules?Conducting the raffle:• You must conduct your raffle as a

representative of the American Cancer Society.– Why? Only licensed, exempt organizations

can be licensed to conduct raffles.• You must work very closely with your

staff partner to ensure compliance with all rules.

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What are the rules?Conducting the raffle:• You must maintain records and provide

them to your staff partner for reporting raffle income and records to the state and winner taxes to IRS.

• Local law enforcement must be notified of gambling activity before the event.

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What are the rules?

Advertising the raffle:• No online promotions (or sales) are

allowed.• Radio and television promotion only

within local area (not across state lines).

What are the rules?Participants:• No one under 18 years old can purchase

tickets; they can sell for a non-profit if activity is supervised by an adult.

• ACS staff and their immediate family and volunteers involved (in organizing) in the raffle activity should not participate – it is a perception issue.

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What are the rules?At the drawing:• The following items are required where

raffle winners are selected:– House rules* including:

• Date, time, location of drawing• Cost of ticket• Prizes, restrictions, etc.• Applicable taxes statement• Fair market value of prizes• Donor/sponsor information

*we provide a template like this for you to use!

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What are the rules?At the drawing:– Raffle license* – Problem gambling sign at all entrances*

*We provide these in the resource packet – all you have to do is post!

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What are the rules?At the event:• Bring:– Prizes, receptacle, sold ticket stubs, unsold

tickets (tracked on raffle ticket log sheets*)– Prize list with description and value of each

prize– All raffle records (expenses, donor

acknowledgements*, reporting forms*)– A copy of rules for possible inspection*

(*You have all these forms with an asterisk in your resource packet!)

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What are the rules?Tickets and ticket sales:• You can use theater style tickets and

provide ticket information to each purchaser or pre-printed tickets (using our ticket template provided in raffle resource packet).

• Ticket (or handouts provided with theater ticket) must have:– Date, time, and location of the drawing– American Cancer Society

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What are the rules?Tickets and ticket sales:• Ticket (or handout) requirements (cont.)– Price of the chance– FMV of each prize to be awarded– A statement about the taxes being the

responsibility of the winner• Tickets should not contain the words

“suggested donation”.

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What are the rules?Tickets and ticket sales:• Tickets must be sequentially numbered. • Stub and ticket should have matching

sequence number.• Stub should have purchaser’s name,

complete address, phone number and other information to notify winner.

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What are the rules?Tickets and ticket sales:• Tickets must be priced consistently. If

discounts are available, the plan must not change.

• There are no free tickets.• Tickets must be priced at $100 or less.

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What are the rules?Tickets and ticket sales:• No mailing of tickets or payments or

online sales; only face to face sales. • We cannot compensate others to sell

tickets on our behalf.

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What are the rules?Tickets and ticket sales:• Sellers must return all stubs and unsold

tickets.• We must account for all raffle tickets

using a raffle ticket distribution log. (This form is included in your raffle resource packet)

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What are the rules?Selecting the winner(s):• Winners should be determined as

advertised (where/when/how).• Your raffle winner should be selected by

random drawing of a winner from a receptacle.

• Winners do not need to be present to win.

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What are the rules?Selecting the winner(s):• Consider in advance how you will draw

names for greatest perception of “fairness”.

• Draw two “back-up” winners.

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What are the rules?Prizes:• Must be 100% donated.• Must be fully owned at the time of the

raffle.• Can be cash, merchandise, or gift

certificates for merchandise or services.• Over $599 require additional reporting,

appraisals, and may require taxes being collected.

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What are the rules?Prizes:• All prizes must be aligned with the

American Cancer Society’s mission. – The following are not allowed:• Tobacco products• Tanning services or products• Animals• Firearms or other weapons• Alcohol (we don’t qualify for a special permit)

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What are the rules?

Prizes:• If there are any limitations on a prize,

make sure it is clearly communicated. (e.g., are there blackout or expiration dates; is airfare included, etc.)

• We must ensure the prizes are awarded• Prizes are not transferable.

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Contact your staff partner for more information.

Thank you for your time!

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