I am curious as to whether non-profit organizations are exempt from the FCC’s rule.
I’m speaking specifically about a public radio station which, during its periodic membership drives, promotes that anyone who pledges receives a small gift (typically this year’s coffee mug), as well as be entered in a drawing for a nice prize: gift certificates of upwards of $1,500 (contributed by supporting businesses) are common.
The coffee mug is one thing, but there is never any mention that a pledge is not necessary to enter the drawing, at least not that I’ve heard, and I listen a lot.
Here’s an FTC commission reporton the subject. And apparently a guy actually named Orson Swindleis in charge of this. Either that or it’s a great internet hoax.
On my local NPR stations (WBUR and WGBH) they indeed say that no pledge is needed to enter the drawings. While I can’t speak for every non-profit I do believe that it’s a requirement for drawings.
As the author of the report, and an old-time radio man, they do have to offer free entries into the drawings. Giving away a coffee mug with the pledge is one thing, you have removed the “chance” from the equation. For the drawing, however, all three (prize, chance, consideration) would be present, unless they allowed free entries.
The rules apply to all broadcast stations. Public or private.