Is it Legal to Host Raffles or Sell Squares at Your Direct Sales Party?

Click For Summary

Discussion Overview

The thread discusses various experiences and opinions regarding the legality and practices of hosting raffles or selling squares at direct sales parties, particularly in the context of fundraising for organizations. Participants share their personal strategies and concerns related to these activities.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Debate/contested

Main Points Raised

  • One participant, identifying as a consultant, expresses a need for creative ideas to promote fundraisers due to a lack of increased percentage from Pampered Chef.
  • Another participant shares their experience of successfully donating a portion of their commission to increase sales and gain loyal customers.
  • Several users mention confusion regarding the legality of selling only specific products for fundraisers, with one participant indicating they will seek clarification from the company.
  • One participant describes a ticket system for fundraisers that allows teams to earn money while also providing a shopping spree for a winner, highlighting potential benefits for both parties.
  • Another participant raises concerns about the legality of such drawings, noting that they may be regulated as a raffle or game of chance.
  • One participant recounts their past experiences with selling raffle tickets and expresses a desire to ensure compliance with legal requirements.
  • Another participant mentions the necessity of obtaining a gaming license in certain states for selling raffle tickets.

Areas of Agreement / Disagreement

Views differ on the legality and appropriateness of hosting raffles or selling squares, with some participants expressing caution and others sharing positive experiences. No clear consensus emerges regarding the best practices for these activities.

Contextual Notes

Participants share personal experiences and strategies related to fundraising, emphasizing the importance of understanding local regulations and the potential impact on sales and customer relationships.

Who May Find This Useful

Consultants interested in fundraising strategies and the legal implications of hosting raffles or selling squares may find this discussion relevant.

Trish1953
Silver Member
Messages
494
Since there hasn't been an increase in the percentage PC gives to fundraisers, anyone have some creative ideas for promoting a FR to a PDO, preschool or daycare center?

Trish in Texas
Independent Consultant
 
Point out the fact that we do not raise our prices for our fundraisers (all other companies do). They usually have higher sales with PC and so the money all works out about the same.

You could also do a specific type of products to feature in your fundraiser (like cookbooks) and then tell them that if anyone WANTS to order other things from the book those purchases would also count toward the sales.

It's all in how you present it.
 
Something that I did for HWC this year, as well as for the humane society here in my town - I donated an extra 5%. That took my commission down to 12%, but it got me more sales than I would have gotten, plus got me a basket full of loyal new customers.
 
Here is the problem I am having with offering only a certain product...I did that and now there seems to be some issues with it...cookbook only fundraiser because they are on sale next month. I was under the impression that we could do that...sure I was taught that in the 4 years I have been with PC...but others are saying the HO won't allow only 1 product to be sold. Especially not only the Guest Special. I am so confused now. I am going to call them myself to help me...I have already sent fundraiser packets to schools. It would possibly be a $7500 show...now what?:confused:
 
More than one of the cookbooks is on special, so maybe it would be okay.
 
For my fundraisers I add to the %. I do a scale... When your group sells 0-599 they rerceive 10%, 600- 1250 they receive 15%, 1250-2000 20%...

Or whatever works for you. You will make higher commission on your other shows that month so make sure your are working. I had so many leads from a Cub Scout Fundraiser... it kept me busy for a solid 6 months and has kept me with online and phone orders. I have gained other fundraisers from it and a huge group of loyal customers! You get the sales and points for your trip. Plus I wrote off the extra percentage I gave to the organization.

For me I look as a fundraiser like a day at the fair. I am there for the bookings and future leads.
 
After PC messing up again this year with the Relay for Life Fundraiser check, This is what I am going to start doing with future fundraisers (hoping that next year the RFL Teams will still do another fundraiser) I will make up tickets with $ amounts on them ($1, $3, or even $5, have the group/teams sell them for a FREE Shopping spree. The winner will receive 50% of the money collected. For example: If the team collects $1000 selling tickets, the winner gets $500 shopping spree with me (will count as a show and even more free stuff) and the group/team will get $500. The other way the Team has to collect orders, money, deliver products, etc for only $150. So this way they sell tickets and make 50% for their group/team. And then for us we also make more money. I am also offering something really nice for the team when they get some shows booked, this part depends on who/what the team is. Taylored make for the team.

One last note, if someone does want to order, they can and then I will give them 15% of the sales to the team - when I get paid that is.

~
 
Teresa, that sounds like a good way to do a fundraiser. Kind of a win/win.
Does the Shopping spree winner also get host benefits? How do you work out all the details?

It sounds like a better way of doing FRs. I have never one.
 
Yes just as long as the winner about is above $150 and they have to pay just like a real host for the things that the host - 60% off host special, 1/2 price products, etc.

I think this is the best way to do things, well until PC changes the % for fundraisers

In my own opinion

~
 
Teresa, please be careful doing this. This type of drawing is usually regulated by the state as a raffle/game of chance. I wouldn't want you to get in trouble because someone sees it or mentions it to Law Enforcement.
 
chefann said:
Teresa, please be careful doing this. This type of drawing is usually regulated by the state as a raffle/game of chance. I wouldn't want you to get in trouble because someone sees it or mentions it to Law Enforcement.


Ann, How do I go about finding this info out?

I have been involved in selling raffle tickets for many different organizations, selling tickets for coupons to restaurants, items donated, etc. never knew about this.

I started doing this over 7 years ago for the March of Dimes, my daughter Lucy had been one of the ambassador for M of D with my husband work since she was 3 months old. I started selling tickets for the ACS 4 years ago.

I don't want to get into trouble so who should I check with??

Thanks for giving me heads up on this

~
 
Depending on your state, and here in MI, you need a gaming lisence to sell raffle tickets. You can apply for one and they cost $$ for a one-time event.

I had a guest invited to a show my mom had and she called me to see if I was going to be doing any kind of raffle at the show or selling of squares... I told her no, that I don't do that and then she responded that she could come. She is an FBI agent and she told me that doing things like that is illegal and ethically she would have to report me. You never know who will be attending shows so just be careful.
 

Frequently Asked Questions

Is it legal to host a raffle at my direct sales party?

Yes, hosting a raffle at your direct sales party can be legal, but it depends on your local laws and regulations. Many states require a permit for raffles, especially if there is a monetary component involved. It's essential to check with your local government or legal advisor to ensure compliance.

Do I need a permit to sell squares at my direct sales party?

In many cases, selling squares (often referred to as a "square board" or "grid") for a chance to win a prize may require a permit, especially if it involves collecting money. It's crucial to verify the rules in your area regarding this type of fundraising activity to avoid any legal issues.

What are the legal implications of hosting a raffle or selling squares?

The legal implications can vary widely based on your location. Generally, if money is exchanged for a chance to win a prize, it may be classified as gambling, which is regulated by law. Ensure you understand the specific regulations in your state or municipality to avoid potential fines or legal action.

Can I offer prizes for raffles or square sales at my direct sales party?

Yes, you can offer prizes for raffles or square sales, but the prizes must be clearly defined, and the rules of the raffle or square sale should be transparent. Make sure to follow any local regulations regarding the value of prizes and the methods of selection to ensure fairness and legality.

What should I do if I’m unsure about the legality of hosting a raffle or selling squares?

If you're unsure about the legality of hosting a raffle or selling squares, it's best to consult with a legal professional or your local government office. They can provide guidance on the specific laws that apply to your situation and help you navigate any necessary permits or regulations.

Similar Pampered Chef Threads

Replies
8
Views
2K
ChefShalon
  • pamperedlinda
  • Pampered Chef Sales
Replies
19
Views
2K
ChefGwendolyn
  • pcchefjane
  • Pampered Chef Shows
Replies
12
Views
2K
babywings76
  • magentablue
  • Pampered Chef Facebook Marketing
Replies
6
Views
4K
babywings76
Back
Top