Charity Sweepstakes Charitable organizations sometimes offer sweepstakes in the hope of offering potential donors an extra incentive to give and thereby increasing funds raised, or at least to expand its lists of potential donors. Charity sweepstakes operate the same way other sweepstakes do. Winners may or may not be pre-selected. Entrants, again, may contribute or not with an equal chance of winning. And a charity may not require a contribution any more than a company can require your payment or purchase.
Some promoters offer sweepstakes to profit by fraudulent means.
Sweepstakes promoting legitimate products should not be confused with product promotions carefully crafted to look like prize giveaways. Some companies use the promise of valuable prizes as lures to sell overpriced and poor quality merchandise and service. Sometimes a sweepstakes is offered in connection with sales of magazines. Although the purchase of magazines is not necessary in order to win, many people will subscribe to a least one magazine, perhaps in mistaken belief that their chances of winning will be greater. These companies retain a high percentage of the magazines they sell as their profit.