This definitely happens, jaxomaha. It's tricky and definitely adds an appearance of conflict of interest -- if not the reality.
I think it's more than fair to bring this up for discussion at a Board meeting, and I've seen groups that rule out this practice in bylaws or standing rules.
The fact is that a FR rep who can afford the limo lunch or the like could put those dollars toward more or better prizes or a slightly better % for your group -- I'd like to think your FR volunteers would advocate for the group getting as good a deal as possible from the best partner.
i am new to the fundraising aspect of our pto. i have found out that fundraising companies are providing special incentives for the fundraising committee members to get them to sign (i.e. weekend vacations, limo lunches, etc.) has anyone else heard of this happening and is this considered okay? maybe i'm being too touchy, but it seems a bit unethical.