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Can I offer contests that involve charity donations in California? What are the requirements?

To offer contests that involve charity donations in California, you must comply with the state’s regulations on charitable gambling. Specifically, you must register with the California Department of Justice’s Nonprofit Raffle Program [3.1]([3.1]). Additionally, raffle tickets can only be sold to individuals who are 18 years of age or older [3.1]([3.1]).

To register with the Nonprofit Raffle Program, eligible organizations must submit a completed registration application on Form CT-NRP-1 and pay a non-refundable registration fee of $14,400 [3.1]([3.1]). The application must contain all required information, including a statement signed by a responsible fiduciary of the eligible organization attesting that the information provided is true and correct [3.1]([3.1]).

If you plan to conduct more than one raffle during the annual registration period, you must indicate on the application form each date on which you plan to conduct a raffle [3.1]([3.1]). However, if any date changes, you are not required to amend your application [3.1]([3.1]).

Your raffle rules must be posted at kiosk locations and, where available, on the eligible organization’s website [2.2]([2.2]). Every eligible organization shall establish and adhere to its raffle rules for the conduct of the raffle [2.2]([2.2]). At a minimum, the raffle rules shall contain all of the following information: the eligible organization’s name, the registration number issued by the Bureau for the eligible organization, the price of the raffle ticket, including, if applicable, the price points for the purchase of tickets at a discounted rate, the method by which the prize winner will be determined, the manner for how a prize may be claimed, the contingency plan in the event that any aspects of the registered event is unable to be conducted (weather delay, power outage, emergency, or other reasonably unforeseeable event), the winner of a raffle prize must present the actual, purchased raffle ticket from the registered event, displaying the winning raffle draw number, within 30 days of the registered event in order to be eligible to redeem the prize, the alternate prize distribution if the winning ticket holder fails to claim the prize from the registered event, eligibility information for raffle players, eligibility information for the recipient of a raffle prize, prize restriction, identification of locations where raffle tickets may be purchased at the registered event, any disclaimers, publicity release, choice of law and jurisdiction, and the effective date of the raffle rules [2.2]([2.2]).

It is also important to note that the distributing agent must file a request for approval of charity fund distribution with the Board for approval of a distribution of charity days’ net proceeds to one or more beneficiaries [1.2]([1.2]). The request must include the total amount of charity days’ net proceeds held by the distributing agent, the name of each beneficiary selected for a distribution, a brief statement as to the purpose of each beneficiary, the amount to be distributed to each beneficiary, a representation by the distributing agent as to the eligibility of all beneficiaries, the total amount of the net proceeds to be approved by the Board for the requested distributions, and the amount of net proceeds to be held by the distributing agent after the approved distributions are made [1.2]([1.2]).

In summary, to offer contests that involve charity donations in California, you must register with the Nonprofit Raffle Program, ensure that raffle tickets are sold only to individuals who are 18 years of age or older, and file a request for approval of charity fund distribution with the Board [1.2]([3.1])[2.2]([2.2]).

Source(s):
Jurisdiction

California