The United States Postal Service (USPS) is strictly enforcing regulations on mailing raffle tickets. If you plan to mail raffle tickets for a fundraiser, you must meet USPS requirements or they could legally refuse to accept your mail.
It is legal to include advertising for a raffle. Including a raffle or lottery ticket in a mailing is strictly prohibited unless you follow USPS guidelines.
Raffles are considered lotteries if they incorporate three elements: prize, chance and consideration (fee to enter). Tickets for such raffles are considered unlawful mail and therefore are not mailable. However, when one or more of the three elements are eliminated from a raffle, it no longer constitutes a lottery for postal purposes. For instance, consideration can be eliminated if a person may enter the drawing without paying a fee.
A nonprofit organization that designs a ticket for a raffle where it is clear that a donation is not required to enter may use the mail to distribute the tickets.
To avoid potential problems the USPS requires the ticket makes clear that no payment is required to enter a raffle.
The following elements should appear on each ticket in a mailing:
-
Use the wording “suggested donation” before the price of the ticket.
-
Use the wording “no donation required to enter” or add a check box “Please enter my name in the drawing. I do not wish to make a donation at this time.”
One alternative is to not include a ticket in the mailing. It is legal to advertise a raffle by mail, but you should still use the phrase “suggested donation” if you list the price of a ticket on the mail piece.
Send us a pdf or sample of any raffle ticket before you print and we will alert you to any potential problems. info@eyecomm.org or call 619-448-6111. We are glad to help!
Download 10 Essentials For Nonprofit Fundraising:
Do the rules for selling raffle tickets by mail apply to first class as well as bulk postage?
Yes. The only way that they can mail is if they say suggested donation. Now, the post office may not catch it when you mail regular first class and if the quantity is small, but it is still not permitted.
If someone has already purchased a raffle ticket via paypal and you are mailing their already purchased ticket to them is that legal?
Yes as long as it says suggested donation on the ticket.
Can raffle tickets be distributed to members of a non-profit for the purpose of selling them to others?
Yes they can through the mail as long as they say suggested donation.
Regarding this – can we get around this by sending via UPS or Fed Ex?
Yes UPS and Fedex do not have any restrictions on raffles.
Is sending a payment for purchase a raffle ticket (that has not been received) through USPS illegal if the receiver purchases the ticket on their end and retains it at there location?
As long as the ticket was not sent through the mail you are fine.
That is fine.
May a monetary prize (check) be mailed to a raffle winner. Assume there was is no mail involvement all the way up to the time that the raffle was won by an entrant. Can the entrants monetary prize be mailed?
Yes that is fine.
Does anyone know the history of the law concerning the mailing of raffle tickets? It would be interesting to know the rationale behind it.
I am honestly not sure of they why.
Nice Article