Friday, 18 July 2014

Five things you need to know about the law on running a fundraising raffle in Texas

Fundraising raffles are legal in Texas, but there are some restrictions. Here are the key things that you need to know:

1. Who can run a raffle in Texas?

Only certain non-profit organisations can run raffles in Texas. Your organisation must be one of the following three types:

 - A non-profit firefighting or medical organisation which does not pay its members anything more than nominal compensation

 - A non-profit religious organisation that has been in existence in Texas for at least 10 years

 - Another non-profit organisation registered with the IRS that is non-political and run entirely by volunteers that has existed for at least 3 years


2 Only two per year

Your fundraising organisation can only run two raffles per year, and only one raffle at a time

3 No cash prizes allowed

You cannot offer cash prizes, and no prize can be worth more than $50,000 (unless the prize is a home, then the limit is $250,000)

4 Tickets must include certain details

Each ticket must state the name and address of your organization; the ticket price; a description of each prize having a value of more than $10; and the date of the draw.


5 No need to register

Unlike in some states, in Texas you don't need to register your raffle or provide any annual report about your raffle. Yay!



Full details are here on the Texas Attorney General's website:

www.texasattorneygeneral.gov/consumer/raffle.shtml