What if our organization does not have current funds to cover the cost of all prizes being offered?
The total cost of all prizes must be guaranteed before a licence is issued. The MGCC will accept an organization’s current bank statement, an irrevocable standby letter of credit from a financial institution or proof of purchase for any merchandise prize. The MGCC will not accept a third party guarantee for prizes. If all prizes being offered are based on a percentage of sales, or if all prizes are being donated, evidence of sufficient funds is not required. Sample irrevocable standby letter of credit. What is a contractual agreement and when do we need one? A contractual agreement is an agreement between the organization and the provider of a prize. Contractual agreements are required for each individual prize valued at $500 or more whether it is donated or purchased. Sample contractual agreement.
Related Questions
- If I lack the funds to cover the full cost of publishing my book, will Granville Island Publishing contribute to the financing in exchange for a share of the profits?
- Our building needs painting but there are not sufficient funds in the Strata Companys bank account to cover the cost. What can we do?
- Why cant county general funds be used to cover the cost?
