Five things you need to know about the law on non-profit raffles in California

In some states raffles are illegal even for non-profits. But, fortunately for fund-raisers, raffles are permitted in California if your organisation meets these criteria:

1

Your organisation must be a non-profit organisation


2

Your organisation must have been operating in California for at least one year


3

You must give 90% of the proceeds of the raffle to the organisation. Yep, this means that 50:50 raffles are illegal in California (in a 50:50 raffle 50% of the proceeds go into a prize fund, and therefore only 50% goes to the organisation. Raffles in California are only legal if 90% of the proceeds go to the nonprofit organisation.)

And, unless you are a nonprofit religious organization, educational institution, or hospital, you must also:


4

Register your raffle with the Attorney General’s office prior to conducting the raffle (using Form CT NRP 1)


5

Report annually on your raffle takings and expenses (using Form CT NRP 2)

(Nonprofit religious organizations, educational institutions, and hospitals are exempt from registering and reporting their raffles, but still have to comply with the other rules like the 90% rule.)

Registration forms and more details are available on the Attorney General’s website:

oag.ca.gov/charities/raffles


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