A non-profit would like to host a fundraiser wherein individuals sponsor rubber ducks who are all assigned a number. At a set date and time, the ducks will be launched into a fountain that will run a course until they pass the finish line. Random numbers will be chosen for identified prizes (non-monetary). Additionally, there will be prizes for the top three winning ducks and a grand prize to be awarded to the winning duck if the number matches a predetermined winning number. The grand prize being something like a new car. The new car will be on site, but will not be the property of the non-profit organization, but rather on display. An insurance policy will be taken out by the organization for the amount of the car, in which the insurance will pay if someone does, in fact, win.

There are some concerns that the grand prize scheme represents more of a lottery rather than a legal raffle. Also, because the organization does not own the vehicle or have it in its legal possession, does this require the organization to put up a bond to be held by the County Clerk in the amount of the prize?

Anyone familiar with the Duck Derby concept?