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Can I offer contests that involve charity donations in Minnesota? What are the requirements?
Based on the provided documents, there are no specific laws or regulations in Minnesota that prohibit offering contests that involve charity donations. However, it is recommended to consult with legal counsel to ensure compliance with any applicable laws and regulations.
If the contest involves donations to political candidates or parties, the donations must be allocated between candidates on a reasonable basis if the cost exceeds $20 per candidate and any donations in kind must be approved by the candidate if the value exceeds $20 [2.1].
If the contest involves auction sales, the full amount of the bid price shall be paid at the time of sale for each item selling for less than $500. A minimum of ten percent of the bid price shall be paid at the time of the sale for each item selling for $500 or more. All personal checks shall be accepted for the full amount or the ten percent down on the day of the sale. A successful bidder shall pay any balance due on the sale, including sales tax, within five days from the date of the sale. Such balance due payments shall be in the form of cash, money order, certified check, or bank draft, made payable to the “Minnesota Commissioner of Management and Budget.” Full payment shall be received prior to release of merchandise [5.1].
If the contest involves challenge grants, an eligible applicant must be a nonprofit corporation that can demonstrate the authority and ability to establish and administer a revolving loan fund, to initiate and implement economic development within its funding region, to be familiar with other available public and private funding sources and economic development programs, and to analyze projects to objectively review loan requests. Subject to the approval of the commissioner, an applicant may contract with other entities that have the technical skills to provide the specific services that fulfill this requirement. An eligible applicant must demonstrate that its board of directors includes citizens who are experienced in rural development, has representatives of the regional development commissions (when applicable), and has directors representative of the geographic areas in the funding region [4.2].
In summary, there are no specific laws or regulations in Minnesota that prohibit offering contests that involve charity donations. However, it is recommended to consult with legal counsel to ensure compliance with any applicable laws and regulations.
Source(s):
- [2.1] APPLICATION PROCEDURE.
- [5.1] AUCTION SALES.
- [4.2] APPLICATION PROCESS AND REQUIREMENTS FOR SELECTION OF REGIONAL ORGANIZATIONS TO RECEIVE CHALLENGE GRANTS.
Jurisdiction
Minnesota