You may conduct “raffles” and auctions to raise funds for IFAPAC as long as you adhere to the specific rules listed below. The rules listed below in no way exhaust the scope of Federal Election Commission (FEC) law, but are intended to be used to guide state and local association leaders regarding the feasibility of holding a “game of chance” fundraiser.
Only current members of the National Association of Insurance and Financial Advisors (NAIFA) who are U.S. Citizens or green card holders, their spouses and exempt association executives may be asked to participate in the fundraising event. Nonmembers (i.e. company representatives, exhibitors, lapsed NAIFA members, nonexempt administrative staff who do not pay NAIFA dues, non-spouse guests and the like) may not be solicited to purchase raffle tickets or asked to bid on auction items. Be especially mindful if the meeting at which you are having the fundraising event includes non- NAIFA members, such as a state convention jointly hosted with another trade association. You may not solicit, in any way, non-NAIFA members for IFAPAC contributions.
You must observe the FEC “one-third rule” that the “prize” costs no more than one-third of the total ticket sales. (For example, if the prize costs $2,500, then you will need to raise at least $7,500 [3 x 2,500] in IFAPAC funds.) You will need to scrupulously track the receipts in order to calculate the “one-third rule” formula. The cost of the prize must be its fair market value for purposes of calculating the “one-third rule.”
The fundraising event cannot violate any national, state or local election, gaming, tax or other laws.
All check and credit card contributions must be made payable directly to IFAPAC.
The funds raised must be sent to the National IFAPAC office no later than 10 days after the fundraising event.
Event organizers must provide to the National IFAPAC office each contributor’s name, NAIFA member number, employer and home address so that the funds can be properly credited and reported. Unattributed funds will be deposited into the administrative account and credited to the applicable local or state association.
The raffle prize(s) or auction item(s) must be paid for or donated by a state or local chapter or a current member of NAIFA. The prize or item may not be donated by a non- NAIFA individual or a company. Simply put, if the person is ineligible to participate in the fundraising event (see 1), then he/she is ineligible to donate a raffle prize or auction item.
Event organizers must inform every contributor that: Contributions to IFAPAC are voluntary and contributed to candidates for elective office. Your contributions will be divided between your state association IFAPAC and National IFAPAC, if you have directed NAIFA to do so. Club types listed above are merely suggestions. You can contribute more or less than the suggested amount. The amount contributed will not benefit or disadvantage you in any way. You have the right to refuse to contribute without reprisal. Corporate contributions to IFAPAC’s political fund are prohibited. Contributions to IFAPAC are not deductible for federal income tax purposes.
Event organizers may not accept over $100 in cash from any single individual if the contribution is intended for the political fund.
In regard to “auctions,” they may be subject to additional legal regulations. Some jurisdictions, for example, restrict auctions to “sealed bids” only or require the hiring of a licensed auctioneer. You must investigate all laws covering auctions in your state and locality before proceeding with the fundraising event.