Carbon Pricing Awareness Raffle
Climate XChange budgets for two kinds of expenses for its Carbon Pricing Awareness Raffles: variable expenses and fixed expenses.
Variable expenses are costs that we incur for each ticket sold. All of our variable expenses are set by entities and relationships that we must use or abide by and over which we have no negotiating leverage. Here is the list of those expenses:
- Massachusetts Tax, by law @ 5% of gross (M.G.L. c. 271, s. 7A)
- Credit cards fees @ ~3% of ticket price for tickets sold via credit cards
Our credit card payment processor is Stripe, which provides us an aggregate price of 2.9% per transaction plus 30 cents per transaction. If you want more of your money to go to our bottom line for our mission, please feel free to pay via check or money order, delivered to a Climate XChange representative (do not use the US Mail — that’s illegal). But in this day and age, it seems like everyone uses credit cards.
In short, on average, 8% of a ticket price goes to these per-ticket expenses.
The Raffle also has fixed expenses. These expenses are sums that we spend regardless of how many tickets we sell. For instance, if we take out an advertisement in the Wellesley Townsman newspaper, we might spend $500. If we only sell 2 tickets, we can’t ask the Townsman for our money back or for a cheaper rate. That $500 is gone. Here are the fixed expenses that we’ve budgeted for:
- Website, Database & Payment Processing
- Materials & Supplies (e.g., ticket stock)
- Accounting & Audit
- Launch & Drawing
Climate XChange People Have No Direct Benefit From The Raffle
With all this talk of expenses, here is something we very much want you to know: No one affiliated with Climate XChange benefits in any personal, direct way from this raffle. There are no hidden fees, commissions, bonuses, incentives or anything like that. Besides not being the right thing, those things are illegal for a Massachusetts-based raffle. A portion of funds raised may be used to pay staff salaries, which is a necessary part of pursuing our mission. CXC Board members, ordinary members and volunteers are all unpaid.
Raffle Expenses Do Double-Duty With Our Mission
We would also like you to know that we view a substantial portion of our expenses as doing “double duty”: raising attention for carbon pricing through the mechanism of this Raffle itself while also raising funds for our mission. For a large number of people, the attention we draw with the Raffle may be the only time they pay attention to carbon emissions and the idea that we can use market-based mechanisms to ameliorate the problem. We think of the money we spend on the unusually generous prize pool, advertising, marketing, much of the website, and the launch and drawing as “double duty” money. In this regard, we believe that it is sensible to think of many of our Carbon Pricing Awareness Raffle expenses as being directly related to our educational mission.