Lottery for a Good Cause

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Question:

Employees want to raffle off a savings bond, gold coins, etc. as a way to raise money for the local childrens' hospital. We think this is good for us and the community, and may even be good for CRA. My compliance sense tells me this may be a problem.

Answer:

A lottery is a lottery and prohibited is prohibited. It isn't the good cause of the lottery that makes it legal or illegal, it is the fact that it is a lottery. Banks can't participate. In many cases, I'll be the first to say these are often low-risk issues, but you certainly couldn't brag about breaking the law and ask for CRA credit for this.

First published on BankersOnline.com 8/31/09