This is a message from CTLS-L. Selecting "Reply" will send a message to the originator. Selecting "Reply to All" will send a message to the entire list. --------------------------------------------------------- > -----Original Message----- > From: Texas Attorney General [mailto:[EMAIL PROTECTED] > Sent: Tuesday, June 01, 2004 2:57 PM > > from Weekly AG Columns - June 2004 > > -Charitable Raffles: Know the Law > -Beware of Scholarship Scams [clipped] > -Thanks, Dad [clipped] > -Child Support Evader: Amy Dorow [clipped] > > ------------------------------------------- > Charitable Raffles: Know the Law > By Greg Abbott > Attorney General of Texas > > My office receives numerous calls from Texans across the state who are > hoping to raise money for a good cause. Many Texans decide they want > to do a raffle. But is it legal to raise funds with a raffle? > > It depends. The Charitable Raffle Enabling Act which has been in > effect since September 1, 1999, establishes the guidelines for conducting a legal raffle in the State of Texas. The Act was established to provide certain charitable and non-profit membership organizations a means to generate income to support their causes. > > The Act defines the types of organizations that can hold raffles. In > general a qualified organization is defined as: > An association organized primarily for religious purposes that has been in existence in Texas for at least ten years. > A voluntary emergency medical service that does not pay its members other than nominal compensation. > A volunteer fire department that operates fire fighting equipment and does not pay it members other than nominal compensation. > > Other organizations may qualify. You can hold a raffle if your > non-profit organization: > -is at least three years old; > -elects its governing body; > -has a 501(c) tax exemption; > -has members; > -does not distribute income to its members; and > -does not participate in any political campaign. > > These are the ONLY organizations allowed to hold raffles in Texas. Any > other type of organization, business or individual conducting a raffle > in Texas would be doing so illegally. The law also regulates what > types of prizes may be offered. Qualified organizations may offer any > prize except money. There is no value limit on prizes donated to the > organization. However, if raffle organizers offer a prize they have > bought or given other consideration for, the value of the prize may > not exceed $50,000. > > There are a few other restrictions. For example, a qualified > organization may only hold two raffles per year. Raffle tickets may > not be advertised state wide or through paid advertisements. Each > ticket must provide the name and address of the organization holding > the raffle or the address of an officer of the organization. Tickets > may only be sold by members of the organization. Additionally, the > ticket must include the price of the ticket and a general description > of each prize that has a value of more than $10. > > A raffle that violates the Charitable Raffle Enabling Act is > considered illegal gambling under the Texas Penal Code. Conducting an illegal raffle is a Class A misdemeanor and participation is a Class C misdemeanor. > > My office would not be permitted to advise you about whether your > particular organization, or any particular proposed raffle, would be legal. We can only provide these general guidelines. If you have doubts about the legality of a raffle, consult a private attorney. > > For information on conducting a legal raffle in Texas, read Chapter > 2002, Charitable Raffles, Occupations Code, Texas Codes Annotated. We > also offer an online brochure on charitable raffles that can be found > on our Web site at www.oag.state.tx.us. > > ------------------- > POINTS TO REMEMBER - CHARITABLE RAFFLES > > Registration and Taxation requirements for nonprofit organizations in > Texas: > Secretary of State, PO Box 12697, Austin, TX 78711 > > (800) 648-9642 > Comptroller of Public Accounts, PO Box 13528, Austin, TX 78711 > (800) 463-4600 > > For a copy of the Charitable Raffle Enabling Act: > Texas Legislature Online: www.capitol.state.tx.us > State Law Library > (512) 463-2178 > > Online brochure: > Charitable Raffles: www.oag.state.tx.us > or call for a free copy: 800 252-8011 > > Information on this and other topics is available on the Attorney > General's Web site at www.oag.state.tx.us. > ------------------------------------------ |
