holding a contest

[worthspending]

What is the name of your state (only U.S. law)? Indiana
I am working to raise money for a local business owner who is a single mom. I am looking for people to donate a hand made craft. The donated hand made crafts will in turn be placed on the internet looking for people to donate a gift card at a building supply store in exchange for the craft. I have a company that has offered a prize of 75.00 in the form of a gift card to the person or group that produces the best craft. The winner is decided by a vote from a community.

This is 100 percent for charity. Not for profit. I am a citizen trying to raise money to buy building materials to help this mom. This is a one time event and one time contest.

What laws would I be breaking? If not legal, then, what hoops should I jump through to make this legal?

 

[FlyingRon]

If you must fork over something tangible for a chance at a prize, it's called an illegal lottery. Just because it's for a good cause doesn't make it a legitimate charity that might escape the lottery laws.

If you ares soliciting donations and then selling them, then that's different.

 

[worthspending]

What we are doing is soliciting donations of hand made knitted and crocheted items. We will take the items and find people that will exchange the hand made item for a gift card at a place that sells building materials. As I understand it, that is perfectly legal. Right? One of the people involved suggested offering a prize to the best hand made item. That is an illegal lottery. Right?

Just wanted to confirm what we are doing without the prize is legal.