There are charitable fundraising ideas that Compliance just has to object to. Compliance isn’t saying “No” to raising money for charity but IS trying to protect the bank from liability if it were to break the law – even for a good cause.  Sometimes what sounds like a good idea to raise funds for a charity or bring in new deposits involves a sweepstakes, a contest, or a lottery. What’s the difference? There are differences, and you need to know what they are, to protect the bank as marketing, compliance and management brainstorm ideas to build the deposit portfolio and be a good corporate citizen:

• Is the American Savings Promotion Act going to allow a marketing to conduct a lottery?
• Your marketing department will have suggestions, but compliance needs to know how to make those ideas work to attract the new customers while staying out of trouble with regulators. 
• Should your bank consider a contest or a drawing? 
• Can a sweepstakes or lottery will entice new depositors or borrowers? 
• You could easily get the word out on social media, so what’s the big deal? 
• Why not build interest in the bank and build employee support with a contest? 
• Are the rules different for an employee-only raffle that is used to build excitement and sales?

Consider this scenario: To attract new customers to a newly opened branch, marketing has proposed to have every new account entered into a drawing for a fabulous vacation trip. For the first time, the bank will also advertise on Facebook and “X” to get the word out and get feedback from new customers. They'll be like testimonials. And the compliance officer will be pulled in six different directions trying to keep things under control. Do you know what needs to be done?

Attend this BOL Learning Connect webinar to find out about:

• How state and federal rules affect promotional sweepstakes and other contests including the new, underutilized American Savings Promotion Act
• How far your bank can go with lotteries
• IRS reporting requirements for winning customers

The rules are complex. You can't get away with just anything someone dreams up. Your advertisements are viewed daily by customers, lawyers, your competition, and even regulators. This program is designed for anyone involved in the planning, execution, and review of contests, sweepstakes, and many fund-raising activities that only serve a good purpose.

Find out how to help your marketing department craft campaigns that accomplish their goals without violating the rules.