Raffle Type Incentives
How much do you know about raffle type incentives? See if you can answer the questions in the scenarios below.
Scenario 1
- A UF department would like to hold a fundraiser for a popular youth program that would benefit many kids in the community. They plan to give each person who makes a donation a ticket and then have a prize drawing. Is this allowable?
Answer:
- No, it is not. As a general matter, raffles, lotteries and other "drawings by chance" are considered a form of gambling and prohibited by Florida Law (Fla. Stat. §849.0935), unless the organization holding the drawing falls into a limited exception that does not apply to UF.
- Certain non-profit organizations, such as the UF Foundation, are permitted to have such drawings but there are still many requirements that have to be met. For example, no purchase or contribution can be required in order to be entered into the drawing. The department can explore working with the UF Foundation to find a legal way to hold the drawing.
Scenario 2
- A college has partnered with a vendor to conduct a cultural survey. The survey will be sent to current faculty, students, staff, alumni, current and prospective students. The college, in collaboration with the vendor, plans to offer incentives for those who complete the survey such as:
- Current Students: Drawing for one $500 Amazon.com Gift Card (Fulfilled by the vendor)
- Prospective Students: $5 Amazon.com Gift Card per completed survey
- Faculty & Staff: No incentive
- Alumni: Drawing for one $500 Amazon.com Gift Card (Fulfilled by the vendor)
Is this, OK?
Answer:
- No, as noted in scenario 1, Florida law prohibits raffle type incentives, unless the organization holding the drawing falls into a limited exception. In general, incentives are not problematic as long as every participant receives the incentive (e.g., the $5 gift card to prospective students).
- The issue comes in when we set up a raffle/game of chance (e.g., the chance to win one $500 gift card). We may be able to use language such as 'the first 100 people who complete the survey will receive a $5 gift card,’ however the college needs to contact UF Compliance and Ethics to fully assess. The fact that the vendor is fulfilling some of the incentives and the relationship with this vendor also needs to be reviewed.
Scenario 3
- A UF department is planning to have a drawing associated with fundraising efforts to donate to United Way. They will offer everyone a ticket, but plan to offer additional tickets to those who donate. Does it change anything in what is allowable if the fundraising efforts are for a charitable organization (i.e., a non-profit organization)?
Answer:
- No, it does not. Since UF is not a non-profit organization, we cannot take advantage of the limited exception. The department cannot conduct this drawing/raffle as proposed despite the fact that the department is raising money to donate to a non-profit organization.
Scenario 4
- A UF researcher wants to use drawings or lotteries to pay human subject participants as an incentive to enroll or continue to participate in a study as there is very little funding available to pay participants. Is this, OK?
Answer:
TIP
- If your department has an interest in conducting a fundraiser with a raffle or other random drawing, please contact UF Compliance and Ethics at UF-Compliance@ufl.edu with any questions.
REFERENCES
Compliance & Ethics