Is it part of your fundraising event? Most nonprofits have raffles as part of their fundraising. But not all nonprofits know the California law regarding raffles. California Law allows eligible tax-exempt organizations to conduct fundraising raffles. But you must register with the Attorney General before you start selling tickets. I still run into nonprofits that don’t know these rules, so I recently covered the basics with my clients and colleagues.
Important Facts About Raffles
• Before holding a raffle, organizations must obtain a raffle permit number from the California Attorney General’s Registry of Charitable Trusts. Prepare and submit Application for Registration (Form CT-NRP-1).
• Raffle registration year is September 1 – August 31.
• Applications take 60 days to process.
• AFTER HOLDING A RAFFLE, nonprofits must prepare and submit a Nonprofit Raffle Report (Form CT-NRP-2) after all raffle events for the registration year. All reports are due by October 1.
So if you are planning to have a raffle, please visit the AG website and read up. Here are some resources to take a look at:
• Raffle Overview
• Raffle Checklist
• Raffle Registration Form
• Raffle Report Form
Also, those 50/50 raffles? They’re not really legal in most cases. But you can read up on that here. We are happy to help you complete, submit, and track all of your raffle forms. Just let us know if you need help! If you are super cool and already know these rules, this is just a reminder that it’s time to think about filing these forms so you’re legal again on September 1st.
Carol Stachwick offers accounting, consulting, and productivity services to private and nonprofit organizations.
You can learn more about how she can help get your books in order and make your life easier here.
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This information is of a general nature. This blog post does not constitute an accountant-client relationship and should not be considered legal advice. Be sure to consult with your tax preparer or legal counsel for your particular situation.