| When I worked as an event planner, I would have | | | | At this point, some of you are thinking, "Are you kidding |
| been mortified to inadvertently overlook a detail which | | | | me? You need a license to be an auctioneer?" |
| could have shut down my event. With so many rules | | | | The answer: Yes, no and sometimes. It varies by area. |
| to follow from municipal, state, and federal bodies, it | | | | In Virginia and Florida, a license is required. If a person |
| can be hard to stay on top of details. | | | | accepts any sort of payment for calling a benefit |
| Licensing varies greatly from location to location, but | | | | auction ("payment" could be as simple as a meal), an |
| here are three common licensing issues I see in the | | | | individual is required to have an auctioneer's license. |
| four areas I most often work: Florida, Virginia, Maryland, | | | | The penalty for conducting an auction without a license |
| and the District of Columbia. I'm not an expert in | | | | is a $2000 fine. |
| licensing, so always check with your local and state | | | | To secure my license, I had to attend an approved |
| government to learn what is applicable for your | | | | school (I attended a course in Missouri), pass a |
| situation. | | | | state-administered test, and secure a bond. Now I |
| #1: A License for the Raffle | | | | must keep up with continuing education requirements. |
| Many states have regulations around raffles, | | | | The process is similar to that of getting a real estate |
| sweepstakes, and contests. | | | | license. |
| My Washington, D.C. charity auction clients have | | | | In Washington, D.C., the laws are relaxed. Virtually |
| debates as to whether they want to involve | | | | anyone can walk into the municipal building and -- about |
| themselves in the raffle licensing laws. When an | | | | $800 later -- walk away with an auctioneer's license. |
| organization secures a raffle license, it must follow | | | | A potential caveat: If you are holding your auction in an |
| rules affecting advertising, the number of tickets sold, | | | | embassy, you are on "foreign soil." You would then |
| and even the time of the draw (because an official will | | | | abide by the rules of that country. |
| come onsite to witness the draw). In contrast, a | | | | In Maryland, licensing varies by city. When I work an |
| sweepstakes - like a raffle - allows for a drawing and | | | | auction in Anne Arundel County (such as Annapolis), I |
| for prizes to be awarded, but there is no requirement | | | | must pay a $250 fee. The City of Baltimore has a |
| that a guest pay for the ticket. | | | | similar law. |
| I know of one school fundraiser which conducts a | | | | I'll be honest: It's confusing, complex, and costly. I will |
| sweepstakes to avoid the hassle of raffle rules. They | | | | spend several thousand dollars this year in licensing, but |
| ask guests to enter the sweepstakes, but since they | | | | it's important to your event. Here's an example why: |
| can't sell the tickets, they encourage donations. Most | | | | A colleague of mine was working a benefit auction in |
| guests do make at least a $5 donation, but a donation | | | | a museum in Washington, D.C. Shortly before he was |
| isn't required to win a prize. | | | | to perform, he was approached by the police. They |
| #2: A License to Serve Alcohol | | | | asked to see his auctioneer's license. If he had not |
| Are you paying a company to manage the alcohol? | | | | produced it, they would have escorted him out. Can |
| Or was the wine donated and your volunteers are | | | | you imagine how embarrassing it would have been to |
| serving it? Are underage students handing out glasses | | | | the non-profit, if he'd not been licensed? The entire |
| of champagne? Is there a difference between serving | | | | fundraiser -- 9 months worth of work -- could have |
| hard alcohol versus wine and beer? | | | | been in jeopardy. |
| There are so many variations on this single area. I | | | | Keep these points in mind as you plan your event. |
| suggest you call your local authorities and check on | | | | Because laws change, it's worth a phone call or two to |
| the rules. | | | | ensure you've covered your bases. |
| #3: A Licensed Auctioneer | | | | |