Use of member dues - private club

[hauser]

I have long wanted to start a travel club that would be funded by member dues. Each quarter, I would like to use part of the dues to offer free travel for selected members of the club as enticement for membership as well as just to have a good time. I have also thought about having a substantial money award as well.
I am confused about: 1) whether this constitutes a lottery?
2) if selection of winner is not random - say done
alphabetically, etc. does this avoid conflict?

 

[Michael Wechsler]

What you are providing doesn't make any sense to me, e.g. alphabetical selection of members for free travel. Here's the scoop:

You've got a lottery situation if all three elements are present:

1. Is a prize being offered?
2. Is there chance involved in the selection of the winner? (Even partial chance will likely be considered chance.)
3. Consideration - must the consumer buy something to enter the contest?

Even if you make this a drawing amongst all the "A" surnames (if that is what you mean), you still have a lottery. The only way to get around this (as is frequently done) is to make paying membership dues not required to be eligible to win.

I wouldn't go into this activity without a lawyer looking over the entire effort.