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Can I offer contests that involve charity donations in Wisconsin? What are the requirements?

Yes, you can offer contests that involve charity donations in Wisconsin. However, there are certain requirements that you must comply with.

Requirements for Conducting Contests Involving Charity Donations in Wisconsin

  1. Eligibility Requirements: The organization conducting the contest must be a Wisconsin arts organization providing programs and services that benefit Wisconsin’s general public. The organization must also be the most appropriate sponsor for the proposed activities and demonstrate that its programming serves the broader community of which it is part. Additionally, the organization must have 3 or more consecutive years of arts programming or service at the time of application and be professional arts organizations with paid administrative staff or equivalent volunteer administration. [1.1]
  2. Registration Requirement: If you plan to solicit in Wisconsin for a charitable organization that is required to be registered under s. 202.12 (1), you must register as a professional fund-raiser with the Wisconsin Department of Financial Institutions. [3.1]
  3. Bond Requirement: At the time of applying for registration as a professional fund-raiser, you must file with and have approved by the department a bond, in which you are the principal obligor, in the sum of $20,000. If you do not at any time have custody of any contributions, the bond shall be in the sum of $5,000. [3.1]
  4. Contract Requirement: You may not solicit contributions on behalf of a charitable organization that is required to be registered under s. 202.12 (1) unless you have executed a written contract with the charitable organization that clearly states the respective obligations of the professional fund-raiser and the charitable organization. The contract must include a clear statement of the financial arrangement between the professional fund-raiser and the charitable organization. [3.1]
  5. Financial Report Requirement: Within 90 days after completing services under a contract described in sub. (4), and on the anniversary of the signing of a contract described under sub. (4) lasting more than one year, you must account in writing to the charitable organization for all contributions received and all expenses incurred under the contract. [3.1]
  6. Depositing Contributions Requirement: You must deposit, in its entirety, a contribution of money received by you, on behalf of a charitable organization required to be registered under s. 202.12 (1), in an account at a financial institution within 5 days after its receipt. The account shall be in the name of the charitable organization. The charitable organization shall have sole control of all withdrawals from the account. [3.1]

Additionally, if you plan to conduct a raffle as part of the contest, you must comply with the following requirements:

Requirements for Conducting Raffles in Wisconsin

  1. License Requirement: Except as provided under sub. (3), a qualified organization under s. 563.907 may not conduct a raffle unless it first receives a license under s. 563.92. [2.1]
  2. Qualified Organizations: Any local religious, charitable, service, fraternal or veterans organization or any organization to which contributions are deductible for federal income tax purposes or state income or franchise tax purposes, which has been in existence for one year immediately preceding its application for a license or date on which a raffle is conducted under s. 563.908 (3) or which is chartered by a state or national organization which has been in existence for at least 3 years, may conduct a raffle in accordance with this subchapter. [2.2]
  3. Conduct of Raffles under a Class B License: All of the following shall apply to the conduct of a raffle under a Class B license: [2.4]
  4. All tickets shall be identical in form.
  5. The organization conducting the raffle shall prominently display, at each place where tickets may be purchased, a notice describing any state or federal law that imposes an age restriction on who may possess a prize that will be awarded in the raffle.
  6. The tickets need not be numbered consecutively.
  7. No person may sell a ticket unless authorized by an organization with a Class B license.
  8. All drawings shall be held in public.
  9. Except as provided in pars. (b) and (c), the purchaser of a ticket must be present at the drawing to win a prize.
  10. All prizes shall be awarded.
  11. The date, time, and place of each drawing, the prizes to be awarded, and the prize amount or the methodology used to determine the prize amount shall be posted or announced before each drawing.
  12. If a drawing is canceled, the organization shall refund the receipts to the ticket purchasers.

If you comply with the above requirements, you can offer contests that involve charity donations and raffles in Wisconsin.

Source(s):
Jurisdiction

Wisconsin