Please Note: For any specific legal concerns, we recommend consulting a local attorney, as laws vary by state.
What’s the Difference Between Giveaways, Sweepstakes, and Raffles?
This can get confusing quickly! And first, a disclaimer, we're not lawyers. If you're wondering about what campaign to run and want to make sure you're in compliance with local regulations, we definitely recommend you speak with a local lawyer.
BetterWorld provides a tool called Giveaways. That is legally a Charitable Sweepstake where people can donate and be rewarded with entries. They can also enter for free or, in some cases, 'share-to-enter.' Share to enter is available with Sliding Scale style Giveaways. A key distinction is that, with all our Giveaways, people don't technically have to make a purchase to win. (If you've ever come across a 'no purchase necessary to enter' clause, this is the reason.) People can find this free entry option by looking at the official rules / additional rules & guidelines at the bottom of the page.
Please Note: We find that 99% of users will make a donation for a chance to win. Donors want to support your organization!
We wish we could advise on this more, but the law varies from state to state and gets rather complicated rather quickly. Any further questions about your specific campaign would be best answered by a qualified attorney or legal advisor.
Why Are Free Entries Required?
Free entries are a legal requirement for Sweepstakes to ensure compliance with local and federal laws. Participants can find the free entry option in the Guidelines and Additional Information section at the bottom of the campaign page. You can see an example of the guidelines section here on our Demo page by scrolling to the bottom of the page and clicking on the blue text that reads "Guidelines and Additional Information."
Legally, free entries need to have the same weight as any other entry. Our hope is that most people enter by donating -- and that's exactly what happens on average. (Around 99% of people enter by making a donation). Still, people are able to enter however they choose, and free entries can't be deleted.
How Does BetterWorld Ensure Compliance With State Regulations?
Sweepstakes law for charities varies state-by-state, so we would definitely suggest consulting a local lawyer with any questions.
As mentioned above, our tool is more of a Charitable Sweepstakes/Contest/Giveaway that operates in a similar way to a Raffle but is not a Raffle. In other words, people are technically making a donation, not 'buying a ticket,' and you don't have to make a donation to have a chance to win the Sweepstakes, aka Giveaway.
One other key distinction is that we provide an alternative method of entry form, which is required for a Sweepstakes/Giveaway, located in the "Guidelines and Additional Information" section of any campaign. You can see an example of the guidelines section here on our Demo page. To find the guidelines section, scroll to the bottom of the page and click on the blue text that reads "Guidelines and Additional Information."
Relatedly, we have fairly extensive terms, conditions and rules to help protect nonprofits. You're also able to add any additional terms and conditions that you need to ensure compliance!