Winner Selection, Notification and Release

One key advantage of running a sweepstakes compared to a contest is its low barrier to entry. While a contest requires participants to demonstrate a certain skill to win, a sweepstakes involves a random draw, making it more accessible to a broader audience.

Depending on your marketing objectives, you might choose a sweepstakes to grow your email list or social media following. Although the winner selection process for a sweepstakes may appear straightforward, there are some important considerations to keep in mind.

Essential Elements to Include in Your Sweepstakes Rules

• Promotional Period: Clearly define the timeframe during which entries will be accepted.
• Eligibility: Specify any age or geographic restrictions that apply.
• Entry Submission Details: Provide instructions on how and where to submit entries, which may include a website or options to enter by mail, email, or another method.
• Drawing Date: Indicate when the drawing will occur, typically the day after the entry period ends.
• Winner Notification Process: Outline how and when winners will be notified.
• Restrictions & Conditions: Include any relevant restrictions, such as disqualifying family members or employees of the sponsor from entering, and the number of entries allowed per person.

Winner Selection Process for a Sweepstakes

Depending on the number of prizes, you may need to draw multiple winners. The sweepstakes administrator is responsible for adhering to the winner selection process as detailed in the rules. Typically, winners are selected using an electronic random number generator. Once a winning entry is drawn, the winner is contacted to proceed with the next steps. The rules usually specify a timeframe within which this “potential winner” must respond, otherwise an alternate winner is selected. At RAVEN5, we also include a liability and publicity release form that each winner must complete, to release the sponsor of any liability associated with the prize, and obtain the winner’s permission to use their information to publicly announce the winners.

IRS and taxes

Did you know that in the United States, any prize valued at $600 or more must be reported to the IRS and included in the winner’s tax return? We handle the process of collecting each winner’s necessary information, compiling all required documents for the tax year, and reporting them directly to the IRS. This can become a real pain point when you’ve got 100 winners. At RAVEN5, we handle that process top to bottom for you.

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