Question:

Is it a violation of USPAP for an appraisal firm to conduct a random drawing with prizes and allow clients a certain number of entries in the drawing that is based on the number of appraisals ordered within a certain period of time?

Response:

This is not a violation if proper disclosure is made. The payment of undisclosed fees, commissions or things of value in the procurement of appraisal assignments is unethical, as stated in the Management section of the ETHICS RULE:

The payment of undisclosed fees, commissions, or things of value in connection with the procurement of an assignment is unethical.

Entries into a drawing would be considered “things of value.” The Comment further
states that:

Disclosure of fees, commissions, or things of value connected to the procurement of an assignment must appear in the certification and in any transmittal letter in which conclusions are stated.

In other words, the report of any assignment procured with the promise of drawing entries must explicitly describe in the certification the “thing of value” offered to the client.