The Sun
Sunnyvale's Newspaper

SCS strictly complies with DA's guidelines for its annual fundraiser

Drawing winner could walk away with new car

By Justin Berton

After the county District Attorney's office notified nonprofits and other organizations that their seemingly harmless fundraisers could in fact be illegal lotteries, Sunnyvale Community Services announced its annual fundraiser will strictly follow the letter of the law--and give tickets away for free.

The grand prize for this year's drawing will allow the winner to choose between a 1999 Mercedes Benz C230, a Volvo S70A or $20,000 in cash.

Last year, the first year of the raffle, SCS raised $23,000. The money went toward the agency's multiple food programs. SCS provides meals for more than 500 low-income families each month and distributes two-week supplies of groceries to families in need during the holiday season.

In August, the Santa Clara County District Attorney's Consumer Protection Unit issued a public service alert to remind organizations they could be penalized for holding illegal lotteries, punishable by a $1,000 fine or six months in jail.

Lotteries are distinguished by requiring a purchase to participate. To keep from being classified as a lottery, SCS will give away tickets for free to those who ask. For those who want to purchase a ticket for the drawing, SCS requests a $20 donation.

But SCS executive director Nancy Tivol does not expect an onslaught of individuals in search of freebies to hamper the fundraising goal.

"Though everyone would like to win a car, in most cases people are entering the drawing to support us," Tivol said.

During last year's fundraiser, Tivol said, four people requested a free ticket, citing the law's requirement. This year, 3,000 tickets are available.

"There is a fine line between a lottery and a drawing," Tivol said. "We are making sure we are in compliance."

According to Rona Layton, attorney for SCS, the law distinguishing lotteries from drawings has been on the books in California since 1976 in the case of People vs. Shira. But the public-service alert sent out three weeks ago was prompted by a surge in consumer complaints, according to District Attorney Robin Wakshull. "We were getting questions and complaints from different lotteries and raffles, and there are a lot of people not aware of the law," she said.

Though small violations of the law do occur, Wakshull said prosecution happened just once in the past year. In June, Weight Watchers was prosecuted for holding a illegal raffle and sweepstakes.

In literature that Weight Watchers released statewide, consumers were led to believe that attending classes or purchasing products were prerequisites to enter the sweepstakes. Attorneys for Weight Watchers argued that there had been a flaw in the advertising material and solved the issue by paying a settlement of $20,000 to Santa Clara County. Weight Watchers also agreed to take measures that would prevent the incident from occurring again.

"The intent of this was to educate people," she added.

But the letter of the law is still cloudy in terms of how SCS can inform people no purchase is needed, Wakshull said.

"Neither statute nor case law nor the attorney general have laid out rules or magic words that need to be applied to avoid making a lottery," Wakshull said. "Each case has to be looked at on their own merits," she added.

Tivol said the SCS will give out a free ticket to those who inquire but will limit the number to one per person.

"I don't think people would go out of their way to sabotage the intent of what we are trying to do," Tivol said.

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This article appeared in the Sunnyvale Sun, September 2, 1998.
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