QUESTION: To achieve quorum at its annual meeting, can an association hold a raffle? Can we give away one month's dues? If this can be done, do we write a check to the owner or simply credit the owner's account?

ANSWER: Yes, you can hold a raffle. Raffles are better than fines. There is nothing illegal or improper about raffling off one month of free dues. It can be done by crediting the owner's account. Some associations get local vendors to donate free dinners to restaurants, free car washes, gift baskets, etc. The mail-in ballot envelope with the person's name and address can be used as the raffle ticket for the drawing.

Registration Not Required. Normally, any entity that wishes to use raffles as a means of raising funds must register annually with the Office of the Attorney General. (Penal Code 320.5) However, raffles are exempt if they do not require any of the participants to pay for a chance to win. Since the raffle is being used to meet quorum rather than raise money, associations do not need to register the raffle with the Attorney General's Office.

RECOMMENDATION: Because achieving quorum is such a problem for most associations, boards should consider amending their bylaws to eliminate quorum for the election of directors.