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 Forum index » Chaotic Fiction » Flynn Lives
Legacy/ARG Countdown Raffle
Moderators: enaxor, Euchre, spaceboy, thebruce
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cracksmurf
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Joined: 09 Mar 2010
Posts: 122

SpaceBass wrote:
I hate to rain on your parade but I don't think we can support this raffle here. Raffles are considered to be games of chance by many states and there are usually strict regulations on who may hold them and how they must be conducted. In Oregon, where uF is based, only charitable and religious groups may hold raffles and they must be licensed by the state ahead of time. I would strongly urge you to check your local laws regarding raffles, sweepstakes, and other sorts of contests, especially if you plan to charge for entries (this is where the big problems start).


Well damn, I would have never expected this, but it does make sense. After looking into it a little more it seems that running a for profit raffle is definitely illegal without being a state recognized non profit organization and have the legal documentation approving the raffle. So even if I were to not take any profit for myself, and simply use the money to pay for shipping, and then donate to Unfiction this would not be allowed. Because at that rate it would be no different than Unfiction holding the raffle themselves, and I assume they do not hold any licensing as a non profit organization.

I still want to keep this raffle going as it has received some good feedback. So we will need to work within the constraints of this new law. For starters I will need to return what has already been sent to me for ticket prices. I will be contacting those who have purchased tickets shortly to inform them of this. Second the raffle will have to become a free to enter raffle with members only paying for the shipping of their prizes upon winning.

The idea of having shipping costs covered and donating money to Unfiction was nice. So perhaps I can set up a paypal donations link, and for those who are interested (can't really force anyone to donate, lol) they can donate about 10 dollars to the shipping cost and uFdonations fund. At the end of the raffle I can just transfer any leftover funds to the official unfiction donation account. Or perhaps we can work all this out to only use the Unfiction donation account and annotate the purpose for the donation.

Dunno I'm just throwing out ideas here. As it stands this raffle will definitely have to go free, and most likely you will have to pay the shipping of your items (unless we work something out like above). If anyone else has ideas let me know and we can try and figure this thing out.

I'm kinda busy right now, but will be updating the thread to reflect the move to a free raffle format later today, as well as contacting and refunding those who have already purchased tickets. Meh, it was a good idea, but guess things like this happen when you don't fully know all the laws on the matter.

PostPosted: Thu Sep 02, 2010 3:47 pm
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Rogi Ocnorb
I Have 100 Cats and Smell of Wee


Joined: 01 Sep 2005
Posts: 4266
Location: Where the cheese is free.

I can think of 3 options (all of which have their downsides).
1) Find a non-US host
2) Add an element of skill to it.
3) Sell something and then do a drawing for FREE prizes.
Possibly something like...
http://www.dealextreme.com/details.dx/sku.6050
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PostPosted: Thu Sep 02, 2010 4:13 pm
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Broklynite
Entrenched

Joined: 11 Apr 2009
Posts: 784

1. As I seem to recall, UF *is* a non-profit organization. But I think that if we started doing something like this, especially without their consent/permission, we might get everyone into hot water.
2. People pay their own shipping.
3. Have a free raffle, with heavily suggested donations, though the donations are not required (or as they say in the commercials- no purchase necessary)
4. Holders sell you their item for $0.01 which transfers ownership. Then you hold a raffle for the prize, which the person has to pay $10 ($15 for an item to include shipping?). You then take the money and donate it to UF? Naturally, it would mean much, much less money than a classic straight-up raffle, but it would still be a few bucks.

PostPosted: Thu Sep 02, 2010 4:52 pm
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SpaceBass
The BADministrator


Joined: 20 Sep 2002
Posts: 2701
Location: pellucidar

Broklynite wrote:
1. As I seem to recall, UF *is* a non-profit organization.

Sadly, it is not. But it certainly is not profitable.
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PostPosted: Thu Sep 02, 2010 5:29 pm
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Broklynite
Entrenched

Joined: 11 Apr 2009
Posts: 784

SpaceBass wrote:
Broklynite wrote:
1. As I seem to recall, UF *is* a non-profit organization.

Sadly, it is not. But it certainly is not profitable.


"Something I forgot to consider when calculating the above, however, was the overhead for running as a business, which we incorporated when Andy Darley made his generous donation from his Perplex City winnings, and which we did so that his gift wouldn't be eaten up by taxes and more of it could go to support the site costs. "

I realize that reading the above quote, I had assumed that you had incorporated as a non-profit, especially since I thought that as a non-profit you would avoid taxes. I'm apparently mistaken- I make no claim to having much more than the vaguest of notions of tax laws tho.

Well, what about doing something like what the big businesses do? Buy X and get a free entry into the raffle. You can also write and get a free entry, so no purchase is necessary. I'd say something like "buy a shirt" but most of the shirt places really don't give you much of a profit. Anyway, it's a thought.

PostPosted: Thu Sep 02, 2010 6:39 pm
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SpaceBass
The BADministrator


Joined: 20 Sep 2002
Posts: 2701
Location: pellucidar

Technically, we do have to pay minimum taxes each year whether or not we make a profit. The first year of incorporation was a special case because startup costs included a rollup of all expenses and income from a few years prior, and we had more than enough expenses to offset Andy's gift. At the time, it seemed like a bad idea to form as a non-profit because of all the additional record-keeping and reporting requirements. Live and learn, I guess. Razz

</derail>
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PostPosted: Thu Sep 02, 2010 8:28 pm
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Broklynite
Entrenched

Joined: 11 Apr 2009
Posts: 784

SpaceBass wrote:
Technically, we do have to pay minimum taxes each year whether or not we make a profit. The first year of incorporation was a special case because startup costs included a rollup of all expenses and income from a few years prior, and we had more than enough expenses to offset Andy's gift. At the time, it seemed like a bad idea to form as a non-profit because of all the additional record-keeping and reporting requirements. Live and learn, I guess. Razz

</derail>


Sorry, wasn't meaning to come off sounding like a dick- I'm really just ignorant of the whole thing, honestly. So, would you folks be willing to take swag donations to auction off at a later time?

PostPosted: Thu Sep 02, 2010 9:47 pm
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Nighthawk
I Have 100 Cats and Smell of Wee


Joined: 14 Jul 2007
Posts: 4751
Location: Miami, Florida, USA, Earth

If my Florida corporation (Darklight Interactive) can assist in any way regarding this, do let me know.

I am not "non-profit"... But I'm sure we can come up with something to circumvent the legal issues regarding this the way it was planned.

According to the law as I looked up (note that I am NOT a lawyer), there are three aspects that define a giveaway:

1) Chance, as is the case in a random drawing
2) A prize
3) Consideration, as is the case in paying for the entry

If you're all three, you're not a "sweepstakes" anymore... You're an "illegal lottery".

The simplest way around that is to not require payment for entry - the usual "...no purchase necessary..." clause - which removes the "Consideration" one above. Note that the means of entering for free "...must not be unduly burdensome."

The way I see it, if we permit people to enter the raffle without actually purchasing anything, legality of this is no longer an issue.

Furthermore, in cases where they make a contest require a "skill challenge"... I've seen contests where the "skill" involved a math problem.


ETA: State of Florida guidelines...

Quote:
According to Section 849.094, Florida Statutes, a game promotion:

* Is a contest, game of chance, or gift enterprise.
* Is conducted in connection with the sale of consumer products or services.
* Has the element of chance and prize.



What Makes a Game Promotion Illegal?

* Failure to file with the Florida Department of Agriculture and Consumer Services.
* Winners are predetermined.
* The game is manipulated for winners to be determined during a particular time period or geographic area.
* Arbitrarily removing, disqualifying, disallowing, or rejecting entries.
* Printing or circulating false, deceptive, or misleading game promotion literature.
* Requiring an entry fee, payment, or proof of purchase to enter.


So the big one is "no entry fee".


Furthermore, for those of you wanting to participate in this but are outside of the United States, I may be able to function as a broker (that is, entering the contest myself in your behalf).
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PostPosted: Fri Sep 03, 2010 1:07 pm
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VanGoghX
Unfettered


Joined: 09 Mar 2010
Posts: 386
Location: SoCal

This is going to sound like a really silly suggestion, buuut....
What if we had an Alternate Reality Raffle?
Not a real raffle, of course, but a pretend one.
Those of us who are enjoying it might send out gifts to show their enjoyment of the ARR. I'd be willing to give the organizer of the ARR a gift of $10 to their PayPal account as a token of my enjoyment of the ARR.
Maybe the organizer might send out a couple gifts as well. Friends exchanging gifts. For some the gift giving may be one way (aint that the way with gifts?) but they're not giving to get anyways.
It wouldn't even really be a raffle at all, just gift giving between friends.

~sigh~ I don't know. Just a silly suggestion.

EDIT: Something like:
Bob sent a gift of $10
Jill sent a gift of $10
Fred, Jeff, Steve, etc. all did the same.

Then in Dec. you send out some gifts that you've been saving up for the past couple months. How you decide who gets gifts is entirely up to you. It'd be more like Christmas than anything.
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PostPosted: Fri Sep 03, 2010 2:26 pm
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stinji
Decorated

Joined: 02 Aug 2010
Posts: 270

a little off topic

Nighthawk- Darklight interactive

the lasertag system?

PostPosted: Fri Sep 03, 2010 3:59 pm
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Nighthawk
I Have 100 Cats and Smell of Wee


Joined: 14 Jul 2007
Posts: 4751
Location: Miami, Florida, USA, Earth

Uh... No.
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PostPosted: Fri Sep 03, 2010 4:10 pm
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cracksmurf
Veteran


Joined: 09 Mar 2010
Posts: 122

Hey everyone, I've been real busy this past week so haven't had time to sit down and look at everyone's suggestions as far as the raffle goes. I hope to have free time about midweek to take a look at them and try and work out some more ideas. At the very least this becomes a free raffle with a suggestion for donations towards the forum. I'll keep you all up to date once I manage to get a working setup going. At that time I will reset the raffle and re-verify all pledges are still in.

Until then I hope you all are enjoying the holiday weekend.
Cracksmurf-

PostPosted: Mon Sep 06, 2010 3:04 am
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cracksmurf
Veteran


Joined: 09 Mar 2010
Posts: 122

For those of you interested, I am making a second attempt at this raffle.

PostPosted: Wed Nov 03, 2010 10:52 pm
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Christien
Unfettered

Joined: 15 Apr 2010
Posts: 419
Location: Montreal, Canada

If all the legal problems have been resolved, then consider me on board.

PostPosted: Wed Nov 03, 2010 11:38 pm
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cracksmurf
Veteran


Joined: 09 Mar 2010
Posts: 122

Christien wrote:
If all the legal problems have been resolved, then consider me on board.


Yeah, just had to completely remove the money out of the picture. Only thing people will be paying for is shipping of their prizes, which is a matter between the winner and the person who pledged the item. Therefore, should be absolutely no legal issues here.

However, Donations to Unfiction is Highly Recommended. This is a great site, and we should all support it.

PostPosted: Wed Nov 03, 2010 11:49 pm
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