Sunday, April 21, 2019



How to Have a Legal Raffle in Pennsylvania
Joseph Nicholson

https://www.theclassroom.com/how-to-have-a-legal-raffle-in-pennsylvania-12080329.html

Pennsylvania law allows raffles only for fundraising by nonprofit organizations for the purposes of charitable or public interests. The organization must have a permit if the raffle is to have an individual prize of more than $500 in value or total prizes in excess of $5,000 within a month. A majority of the voters in a municipality can vote not to issue any such permits.

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Tip

Except for volunteer fire, ambulance and rescue organizations, who can have three raffle permits in a year, an eligible organization can only receive two raffle permits in a calendar year. Your organization can avoid needing a permit by staying under the prize value restrictions of $500 per prize and $5,000 per month.



(a)  Playing of games of chance shall be on a cash basis.
 (b)  Cash includes checks and money orders but does not include the use of a type of credit or debit card.
 (c)  The consideration to play a game of chance shall be collected in full, by cash, check or money order, in advance of a play.
 (d)  Credit play may not be extended to a player.

https://www.rklcpa.com/new-rules-for-charitable-organizations-conducting-small-games-of-chance/

LICENSING REQUIREMENTS FOR CHARITABLE ORGANIZATIONS
Licensed charitable organizations and clubs are authorized to conduct a variety of games of chance including pull-tab games, punchboards, raffles daily drawings and fifty-fifty drawings. Licenses for charitable organizations and clubs are authorized by county treasurers.

Charitable organizations and clubs are eligible for two types of license: an annual license for $125 or a monthly license for $25. In addition to regular and monthly licenses, special raffle permits are also available.




https://info.legalzoom.com/requirements-raffle-pennsylvania-25984.html


Governing Bodies


Administrative oversight for all raffles conducted in Pennsylvania is spread across three primary state departments. First, licensing is done through the Treasurer's Office in the county where your business is located. Next, local law enforcement officials oversee the actual administration of the raffle and ensure compliance with all state and local laws. Finally, the Department of Revenue is charged with receiving and reviewing your reports and making sure that any proceeds from the raffle are used properly. To ensure compliance with the law, each of these bodies are authorized to freely exchange information about your organization and the raffle.

Limitations

Pennsylvania has strict limitations on where a raffle may be held, value of the prizes awarded and how funds generated are used by the organization. The raffle must be held on licensed premises, which generally means the location of your organization's principle office. If your organization does not have a location where it regularly conducts business, you may use an alternative location provided the owner is also licensed and you receive the owner's written consent. In addition, the value of any single prize awarded must not exceed $1,000 and no more than the equivalent of $10,000 may be awarded from the raffle per month. Further, all proceeds generated from the raffle must be used to promote charitable or other public interest purposes.

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