[ca] Can A Business Run A Free Sweepstakes To Encourage Donations Directly To An Unrelated 501(c)(3)?

Location: California

I own a small guitar-effects company in California with an international customer base. I also spent nearly 20 years working in education, and I'd like to use some excess company inventory to raise money for music education.

The idea is to give away several boxes of surplus guitar-pedal components, hardware, prototypes, and other equipment through a promotional sweepstakes. Rather than sell the inventory, we'd encourage our customers to donate directly to a local California 501(c)(3) that funds music education in public schools.

I've tried contacting a couple of nonprofits about this, but the potential legal and administrative complications seem to be making them hesitant, even though we're not asking them to participate in administering the giveaway.

Here's how we're planning to structure it:

• Completely free entry. No purchase or donation necessary. Donations do not increase anyone's individual chances of winning.
• U.S. residents, 18+ only. One entry per person, with published official rules and random winner selection.
• The business handles everything. We provide the prizes, administer the sweepstakes, select winners, and pay shipping.
• Donations go directly to the nonprofit. We never collect, process, hold, or distribute charitable funds.
• The business contributes $500 to kick off the fundraiser.
• No compensation or commercial arrangement. The nonprofit doesn't pay us, provide prizes, or administer the sweepstakes.

Ideally, we'd create a landing page on our company website with a free giveaway entry form and an embedded Givebutter donation form connected directly to the nonprofit's account. Givebutter would process donations for the nonprofit, not our company.

We'd also like to have community fundraising milestones that unlock additional giveaway prizes. These would benefit the entire entrant pool equally, regardless of whether any individual donated.

My questions:

1. Does this arrangement trigger California charitable fundraising registration requirements, even though we never handle donations or receive compensation?
2. Does embedding the nonprofit's Givebutter donation form on our website create any additional legal obligations compared with simply linking to its existing donation page?
3. Can we legally advertise community fundraising milestones that unlock additional sweepstakes prizes, provided donating doesn't improve an individual's odds?
4. Do we need the nonprofit's formal permission or a written agreement to promote the fundraiser if we clearly state that the giveaway is independently operated by our company?
5. Is there anything else about this structure that creates a significant legal concern?

I'm trying to do something positive with inventory that's otherwise collecting dust, but I also don't want to create legal headaches for either my company or the nonprofit.

I'm not looking to avoid legitimate compliance requirements. I'm trying to understand what they actually are before proceeding.

Thanks!