LegalMatters: Sweepstakes: Legal Considerations and Best Practices

Joe Boland: If a nonprofit is looking to run a sweepstakes, what are the legal steps it needs to take to ensure it stays within the boundaries of the law?

Marla Altberg: It is always a good idea to use a specialist in this area to ensure compliance. That can take the form of a sweepstakes administration/independent judging agency or attorney with this type of expertise. The most important thing to remember is that, unlike a true raffle, in a sweepstakes you can ask for a donation, but not require it. Furthermore, sweepstakes offering prizes that total over $5,000 must be registered and bonded in the states of New York and Florida. However, Florida has an exemption for nonprofits.