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

To offer contests that involve charity donations in Colorado, there are several requirements that must be met.

Requirements for Offering Contests Involving Charity Donations in Colorado

  1. Local Government Authorization: A charitable organization may engage in solicitation for a charitable purpose involving persons standing in or adjacent to a public roadway and soliciting donations from motorists if a local government permits it. The solicitation must take place entirely within the jurisdiction of the local government, and the number of days for which permission is granted does not exceed five days in any calendar year per charitable organization. [CORS 29-6.5-103][1.1]
  2. Eligibility: To be eligible for charitable donations, a nonprofit organization must have been registered with the Secretary of State under the “Colorado Charitable Solicitations Act” for at least five years, be in good standing with the Secretary of State, and be a nonprofit organization that is exempt from taxation under section 501(c)(3) of the federal “Internal Revenue Code of 1986,” as amended. [CORS 39-22-5103][2.1]
  3. Prohibition of Deceptive Practices: The general assembly has found that there is a compelling need to curtail and prevent the most deceptive practices in connection with the promotion of sweepstakes and contests. Preventing the deceptive promotions of sweepstakes and contests is a matter vitally affecting the public interest, and therefore, statutory regulation of sweepstakes and contests is necessary to the general welfare of the public. [CORS 6-1-801][3.1]
  4. Prohibition of Rigging Publicly Exhibited Contests: A person commits a civil infraction if they knowingly engage in, sponsor, produce, judge, or otherwise participate in a publicly exhibited or advertised contest knowing that the contest is not being conducted in compliance with the rules and usages purporting to govern it, by reason of conduct prohibited by this section. [CORS 18-5-402][4.1]
  5. Creation of the Donate to a Colorado Nonprofit Fund: The Donate to a Colorado Nonprofit Fund was created in the state treasury to receive money credited to the fund pursuant to this part and any other money that the general assembly may appropriate or transfer to the fund. The department of revenue shall determine annually the total amount designated to the fund and the total amounts designated to each individual eligible charitable organization. After the appropriations to the department of revenue, the secretary of state, and the state treasurer are deducted, the state treasurer shall distribute the remaining funds to the eligible charitable organizations as designated by taxpayers. [CORS 39-22-5104][2.2]

Conclusion

To offer contests that involve charity donations in Colorado, you must obtain local government authorization, ensure eligibility of the nonprofit organization, prohibit deceptive practices, prohibit rigging publicly exhibited contests, and comply with the creation of the Donate to a Colorado Nonprofit Fund.

Source(s):
Jurisdiction

Colorado