In California, charities and certain other private nonprofit organizations may conduct raffles to raise funds for beneficial or charitable purposes in the state. This exception to the general constitutional prohibition against lotteries requires that at least 90 percent of the gross receipts from these raffles go directly to beneficial or charitable purposes in California. Unless specifically exempted, a nonprofit organization must register with the Attorney General's Registry of Charitable Trusts prior to conducting the raffle and file an aggregate financial disclosure report for all raffles held during the reporting year. Forms for registering and reporting activities are provided on this web page. Using the Registry’s new search feature, you can now view information regarding raffles held by nonprofits in California. The information available includes registration and raffle report data (such as the amount of money collected), and dates on which a charity intends to hold a raffle. What organizations qualify and how the raffles must be conducted are governed by Penal Code section 320.5, which was added by Senate Bill 639 (McPherson, Chapter 778, Stats. of 2000). For details, view the Frequently Asked Questions, Statutes and Regulations. Raffles FAQSLaws/Regulations
Nonprofit Accounting Basics |