In lieu of an abstract, here is a brief excerpt of the content:

Laws, Risks, and Liabilities A complaint was registered with the state’s attorney general that our organization was engaging in unlicensed gambling during its annual fundraising convention . The complaint was passed on to the agency having jurisdiction. Shortly after an inquiry, we received a cease-and-desist order. We learned of this a few weeks before the day the convention was to begin. The date and location of the convention had been set for at least three years. The subject of the order was a series of raffles we ran at the event. Raffles had been run for years in the state with no problem. We had retained the services of counsel and thought we had been diligent in complying with all laws. No one suspected problems, but there it was: an order to halt all raffles until we applied for and received a proper permit. We quickly learned it was a simple matter to receive a permit, which was required by the locality in which the event was being held. All we had to do was submit a proper application and pay a required fee, but given the length of time it would take to process the application , we had no choice but to cancel all raffles planned for the event. Fortunately, the cease-and-desist order covered only raffles, and these were not a major contributor to overall event income. We still lost more than $100,000 in net revenue that year, all because we could not stage raffles. We did not have the required local permit, because we did not know all the rules. 20 220 ParT 4: aPPlying The rUles and Covering all The angles allowed or special regulations covering some auction items. For instance, vehicles that are auctioned may be subject to special requirements. Use of alcoholic beverages as auction items may be subject to special requirements in some states; for example, in texas, their use in auctions requires a special charitable auction permit and adherence to a number of other rather arcane requirements. the following sections provide advice on meeting requirements and reducing risk of liability when hosting fundraising events. warning and disClaiMer: This book is not a legal text, does not provide legal advice, and is not a substitute for legal advice or professional counsel on matters of law, legal liability, insurance , contract matters, or other subject areas covered where professional counsel may be obtained . Event planners should seek legal or other professional advice when appropriate. Discussion of risk-related topics in this book is intended to help event planners understand and identify legal risks and aid planners in recognizing when to seek professional counsel. Although efforts have been made to ensure the accuracy of information presented, laws change over time, and the multitude of state and local regulations governing nonprofit organizations and fundraising makes it impossible to address all of them or the potential effects of all of them in this book. In particular, legal requirements from one locality to another may vary, even within the same state. For this reason it is especially important to seek competent assistance for advice on complying with local regulations and obtaining all required permits. The author assumes no responsibility for any errors or outdated materials or for any actions by anyone as a consequence of reading this book, including the actions of anyone who takes action in disregard of this warning and disclaimer. Risk Management although there is always some risk involved in holding a fundraising event, most people probably assume that the greatest risk is that attendance will laws, rUles, and ordinances governing raffles, games of chance, lotteries, bingo, and other fundraising activities can vary by state, county, and city. Games of chance and raffles are considered gaming and are usually regulated under state or local gambling laws. these activities are generally allowed for nonprofit charitable organizations but are subject to rules that must be met. there can be different requirements for different types of games, so event planners need to know well in advance the specific nature of all fundraising activities planned for an event. For example, a city ordinance may place different requirements on holding a simple ticket raffle than on a bingo game. it is important to make sure planned activities are consistent with local requirements and proper permits are acquired. it is not just gaming permits and regulations that can be complex; rules governing public gatherings vary greatly by location and require the attention of event planners. additional requirements may...

Share