NO raffles, lottery, etc.

[LightBulb]

Originally posted by sairose
Raffles are also illegal in Arkansas. What some orgs do, instead of calling it a raffle, sell something small (some candy, maybe some kind of baked good like a cookie) for $1.00 which entitles the person to a drawing. Make any sense? Like, you would ask someone, "Would you like to buy a rice krispy treat for a dollar and have your name entered into a drawing for this TV?" I can't speak for ALL states, but I know here, you can do that. Because it's not technically gambling because the person buying a chance is also getting something.

That's a really good idea!

[gpb1874]

can you do a guessing game? like guess how many jellybeans are in the jar and closest wins a prize? these can be done in texas and groups use it to get around the one raffle per year.

[adpiucf]

But instead of a raffle, you can hold an Opportunity Drawing. Same principles, without the legalese.

I have used this drawing when working with nonprofits and for proft groups.

[gphiangel624]

This is way late, but it might still help.

In California, raffles are illegal unless conducted as a donation (California Penal Code 319). Basically a "raffle" contains 3 elements:

1) Consideration (i.e. Paying money for a ticket)
2) Chance
3) Prize

To make it legal, you must remove at least one element. The easiest way to do this is to remove consideration; like sairose said in an earlier post, if you sell something tangible (food, entry to a dance, etc.) and the raffle ticket comes with it, then it's legal. The only drawback is that if someone comes to you and says they want a raffle ticket but don't want to purchase anything to get it, you're obligated by law to give it to them. It's the whole sweepstakes idea that there's "no purchase necessary to participate." Most people don't really know that raffles are illegal and that requesting a ticket is an option.

You can also take away the chance element, but basically everyone has to win/receive something if you do that. Example: you pass out chocolate bars at the entry to an event and the inside of the paper wrapping has a discount coupon or tells if you're an "instant winner." This would be ok because either way, you win the prize of the chocolate bar, but you may also win an additional prize. Radio stations and department stores do this all the time.

Kind of pointless to take the prize element away...

[TxAPhi]

Most student organizations are not qualified to conduct raffles in the State of Texas. Raffles involve paying money for the chance to win a prize of greater value, which is considered gambling. Instead of raffles, SALD suggests that student organizations hold "Free Drawings" in which no money is exchanged.

The Charitable Raffle Enabling Act, effective January 1, 1990, permits "qualified organizations" to hold up to two raffles per calendar year.



Two types of student organizations may conduct raffles:

* An association organized primarily for religious purposes that has been in existence in Texas for at least 10 years.

* A nonprofit organization that has existed for at least the three preceding years, during which it has had a governing body duly elected by its members and is exempt from federal income tax under Section 501(c), Internal Revenue Code; does not participate in any political campaign. [A copy of your organization's IRS Letter of Determination verifying 501(c) status will be required.]


Student organizations may conduct raffles on campus for qualified off-campus organizations. Any organization conducting a raffle on campus must complete a table application and follow university ticketing procedures. Raffle tickets may not be advertised statewide or through paid advertisements. Each raffle ticket must state the name and address of the organization holding the raffle, the name of an officer of the organization, the price of the ticket, and a general description of each prize to be awarded that has a value of over $10. A prize may not be money. Only members of the organization may sell tickets. No one may be compensated directly or indirectly for organizing or conducting a raffle or for selling raffle tickets.

For further information on raffles, refer to http://www.oag.state.tx.us/AG_Public...s/raffle.shtml or contact Student Activities and Leadership Development (SSB 4.104).