Anyone Ever Conducted A Car Raffle For A Non-profit Organization In California?

I’m getting ready to do one and just wanted to hear from a few people to see how successful theirs was and if they had any problems with all the laws and regulations?
Thanks,
James

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One Response to “Anyone Ever Conducted A Car Raffle For A Non-profit Organization In California?”

  1. James D Says:

    I have not done one in California, but have been a member of an organization that did one in Mississippi.
    We purchase a car (a Cadillac) at a discounted cost and raffled it off. We sold as many tickets as we could for $5.00 each and sold tickets whenever we could across the state as members of a state organization. The project chairman kept the car at his home and drove it to various venues across the state. After 6 months of ticket sales, the car was given away as “new”, since it had never been titled.
    We had insurance on the vehicle, borrowed the money from a bank and paid the interest on the loan every 90 days and kept renewing the loan.
    For us, we did not have enough tickets sold and nearly lost our shirts. So, we found a very rich member of our organization and ended up selling him several thousand dollars worth of tickets (to make up our loss). We could not guarantee that he would win, but statistically, he had over 80% of the tickets. In lieu of filling out his name on every ticket, we came up with a system: we put in 10 tickets – 8 with his name and 2 blanks. If we had drawn one of the blanks, we would have drawn from our raffled tickets.
    As it turned out, we did draw one of his tickets and he won fair and square.
    When we analyzed what happened, this is what we found: Nobody really wanted to sell tickets in our organization other than the project chairman and the president. 2 months into the project, the chairman suffered a nervous breakdown and was hospitalized and at the same time, the president had to step down for marital obligations. I was the incoming president and had it thrust upon me.
    The person that bought the car did not get quotes, or even try to talk the dealership down on price (he was the banker that got us the loan).

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