So many of us seen those church raffles where the first prize may be $5000 and the second and third prizes might be $1000 and $500 respectively. Part of the attraction though is that although the tickets cost $100 apiece, ONLY 500 tickets will be sold. That means the church collects $50,000 less $6500 which brings them a profit of $43,500.00 clear. Okay so what if I, Hottius Maximus, decided to do that on my own, perhaps even once every six months. That’s quite a chunk of change that I would be raking in, I would still pay off the winners in cash every six months, and I could live pretty comfortably, and yes I would even pay taxes on it. If I were to get busted, what would they charge me with? Why can the churches do it but not me? Bingo and the lottery are legal in my state, and so is gambling, so what’s the problem?
You might be able to do it, PROVIDED you have a gambling license. I know someone who is a fund-raiser for a non-profit organization, and they have to apply for another of these permits for each and every raffle they run. I don’t know if these permits are only for non-profits, or if anyone can get one.
Most states that allow bingo and raffles, but not other gambling, permit it only for charitable oprganizations, so that is why you always see it connected to churches and the like. You as a private citizen will never get a permit, because you are not a charitable organization.
I may not be a charitable organization, but could I get status as a “charity CASE?”
Forget the legalites - do you think you will be able to sell 500 tickets for a century apiece? People buying into a church raffle are supporting the church - how will your friends feel about supporting you? How about strangers, because the assumption would be that you don’t have 500 friends?
That’s the main impediment. A $100 ticket is a big committment. People buy more likely to support the cause, rather than the chance of a payout. the prize just adds a little gravy to what may be a tough sell. (“Please donate $100?”)
Again, it’s not “Charity” it’s “registered charity”. YMMV by state, but generally they need to be a non-profit dedicated to some social good, not a way to pad someone’s bank account. Then, as a registered charity, you can ask for donations, issue tax receipts, apply for lottery licenses, etc.
I also suspect any group that has one of these usually has a large base or an upper limit on what they do, like once a year - otherwise donor fatigue sets in.
Finally, double check teh rules in your state. I know in most Candian provinces, a substantial amount has to be returned as prizes - usually between 50% and 75% so it’s not a license to print money. (OK, so it is, but it’s not as big a license as you seem to think…)
In New Jersey, you first have to get a state license as a non-profit, charitable organization to run a limited slate of games of chance. Second, you need to get permission from your municipality’s council to run each specific event.