Raffle Laws
Raffles can be an excellent way to raise money for your organization. They save you the time and energy of holding an event, while still allowing you to earn a profit for your cause. However, you must first educate yourself about raffle laws in your state and follow the application procedure.
Other People Are Reading
-
Governing Bodies
-
State governments determine raffle laws. Each state has its own rules about who can hold a raffle, how often they can hold one, and how it can be carried out, including what prizes can be given (RaffleFaq.com). Visit RaffleFaq.com for a list of laws from each state.
Application Process
-
Some state, county, and city governments require people to apply for a raffle license before holding a raffle. RaffleFaq.com recommends checking with all of these government agencies in case they require organizations to file with them. Often an organization must pay a fee to apply.
-
The Strictest Laws
-
Some states, including Arkansas, Hawaii and Kansas, forbid raffles. Tennessee allows raffles but has strict laws governing them. It requires an organization to have 501(c)(3) status and to have existed in Tennessee for five continuous years. The Tennessee Department of State accepts applications between July 1 and December 1, and requires at least a $150 fee.
Online Raffles
-
People have begun holding raffles online, often in an attempt to avoid having to comply with state laws. However, they may be subject to the same laws. Also, since laws are evolving to address concerns about the Internet, people should find out from a knowledgeable source such as an attorney whether their raffle would comply with state laws.
Planning a Raffle
-
Often it takes time for government agencies to process raffle applications, so an organization may not be able to hold a raffle on short notice. Applying at least a month ahead of time is often a good idea. The process might seem like a hassle, but if you plan ahead and comply with state laws, your raffle can still happen as scheduled.
-
