FUNDRAISING – Did you know Raffles are considered GAMBLING?

Here are some things you need to know and do before you plan your next raffle.

Nonprofits are able to conduct raffles for fundraising provided they have been recognized as a nonprofit for at least five (5) years.

All raffles are to be conducted by the organization’s members (no third party), and any online raffles are to be conducted on the organization’s website, managed by the organization’s staff only, for Arizona residents only.

Again, no third party organizers allowed.

Raffle tickets may not be sold across state borders and you cannot mail raffle tickets. It violates US Postal Laws.

No organization member can benefit from the raffle: direct or indirect, other than equal to all participants.

Prior to running your raffle, you must register with the Arizona Attorney General’s Office:

Amusement Gambling Registration Information and Forms

Before any person can conduct an amusement gambling intellectual contest or event, pursuant to A.R.S. §13-3301, paragraph 1, subsection (d), item (III), such person shall register with the Attorney General’s Office, 2005 N Central Ave, Phoenix, AZ 85004, pursuant to A.R.S. §13-3311. The registration forms are provided.

STATE OF ARIZONA OFFICE OF THE ATTORNEY GENERAL

SPECIAL INVESTIGATIONS SECTION AMUSEMENT GAMBLING REGISTRATION FORM

Good luck and may your Raffle’s FUNDRAISING INCOME help your organization’s mission.

Enter your gambling results here: IRS Form 990, Part VIII Statement of Revenue, Other Revenue, 9a-c.

By the way, do you include Raffle Expenses on pg 1, under Fundraising Expenses? Part 1 Summary, Expenses, 16b (taken from Part XI, column (D), line 25)?