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

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Requirements for Offering Contests Involving Charity Donations in Kentucky

Kentucky law allows licensed charitable organizations to conduct charitable gaming activities, including bingo, raffles, and charity fundraising events [1.1]. However, there are restrictions on the frequency, prizes, and participants for these activities [1.1].

If you want to offer contests that involve charity donations in Kentucky, you must be a licensed charitable organization [1.2]. To obtain a license, you must meet certain qualifications, including possessing a tax-exempt status under 26 U.S.C. secs. 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or 501(c)(19), or be covered under a group ruling issued by the Internal Revenue Service under authority of those sections [1.2].

Once you have obtained a license, you may conduct certain charitable gaming activities, including bingo, raffles, and charity fundraising events [1.1]. However, there are limitations on the frequency, prizes, and participants for these activities [1.1]. For example, in the conduct of bingo, you are limited to one session per day, two sessions per week, for a period not to exceed five consecutive hours in any day and not to exceed ten total hours per week [1.1].

In addition, no licensed charitable organization shall award prizes for bingo that exceed $5,000 in fair market value per 24-hour period, including the value of door prizes [1.1]. For raffles, all prizes shall be identified in advance of the drawing and all prizes identified shall be awarded [1.1].

Furthermore, no person under the age of 18 shall be permitted to purchase bingo supplies or play bingo unless he or she is playing for noncash prizes and is accompanied by a parent or legal guardian and only if the value of any noncash prize awarded does not exceed $10 [1.1].

It is important to note that offering or accepting donations to the sheriff’s office in accordance with the provisions of KRS 61.310 shall not in itself constitute a violation of KRS 521.020 or KRS 521.040 [2.1].

If you meet these requirements, you may offer contests that involve charity donations in Kentucky.

[1.1]: KYRS 238.545 [2.1]: KYRS 521.060 [1.2]: KYRS 238.535

Source(s):
Jurisdiction

Kentucky