Nonprofit & Government Times Q1 2020

Gambling activities such as raffles can be a successful activity for charitable organizations looking to reach their fundraising goals, so long as an organization understands that advanced applications may be necessary and strict filing requirements may be triggered on a state or federal level.

circumstances. The organization must file a finan- cial statement of raffle operations on Form GC-7R with the municipal clerk and the Board by January 30 of the following year. An additional fee must be remitted to the municipality assessed at 2% of the net profits of $30,000 or more. If the net proceeds derived from a single raffle will be between $5,000 and $29,999, the organization must apply for and obtain a Games of Chance Identification Number from the Commission. In addition, they must file a verified statement with the municipal clerk on Form GCVS-1 attesting that the net proceeds for each raffle conducted during the calendar year will be be- tween $5,000 and $29,999. [The rules are onerous concerning raffle ticket sales at the event and should be reviewed before the event.] • Category 2: Operation of a raffle in which the organization derives less than $5,000 in net raffle proceeds from any single raffle and less than $30,000 in net raffle proceeds from all raffles conducted during the cal- endar year: The organization is required to review its document to ensure that it is an “authorized organi- zation (charity) and that all proceeds derived from the conduct of raffles shall be deposited into a bank account maintained solely by the organization to be disbursed only for the lawful expenditures (charita- ble). The same rules apply to day-of event sales.

or exceed the above limits by category, the authorized organization has to apply for and obtain a Games of Chance Identification Number from the Commission and meet the filing requirements of Category 1. Raffle drawings can be conducted on premises other than that of the authorized organization or games of chance lessor located within the same municipality in which the authorized organization is domiciled, and within municipalities with the same county in which the authorized organization is domiciled, and within counties that are contiguous to the county in which the authorized organization is domiciled, provided that prior written authorization is obtained from the clerk of the municipality in which the premise is located on a Raffle Consent Form as prescribed by the Gaming Commission. Organizations should note that while they may accept credit card payments for the purchase of raffle tickets, sales via the internet are currently not authorized. The rules in New Jersey are considerably simpler than those in New York. To obtain a license to run a raffle, a not-for-profit must first show that it is a qualified organi- zation (charity). The organization must then apply for a municipal license from the municipality where the raffle will be conducted. The application should include one sample raffle ticket. New Jersey also requires a desig- nated contact person to be responsible for the raffle. NEW JERSEY

If, during the course of a calendar year in which raffles are conducted, the net proceeds for a single raffle reach

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