Ask Reggi Your Question Now
Can I offer contests that involve charity donations in Louisiana? What are the requirements?
Yes, you can offer contests that involve charity donations in Louisiana, but certain requirements must be met.
Requirements for Offering Contests Involving Charity Donations in Louisiana
- The organization must be licensed by the Louisiana Department of Public Safety and Corrections, Office of State Police, to conduct charitable gaming [2.1][2.2][3.1].
- The organization must meet the qualifications required by Louisiana’s Raffles, Bingo, and Keno Licensing Law [2.1][2.2].
- The organization must be actively domiciled in Louisiana for the two consecutive years immediately preceding their application, unless the director waives this requirement for a specific fundraising event for newly formed organizations whose members meet the domiciliary requirement [2.2].
- The organization must submit an application to conduct charitable gaming to the division upon forms prescribed and provided by the department [2.1][3.1].
- The application must include the names, dates of birth, and current home addresses of original incorporators, current officers, partners, or principals of the organization, federal tax identification number, federal tax exemption certificate, latest federal income tax return, local ordinance authorizing charitable gaming, financial reports for the previous year, current charitable gaming licenses, and a copy of any rental or lease agreements where gaming is to be conducted, where applicable [2.1].
- The application must be dated and signed by the proposed member in charge of charitable gaming and the head of the organization, who shall be the president, chairman of the board of directors, or the chief executive officer or other duly elected head of the organization [2.1].
- A fee in the amount of $50 must accompany each application to cover the cost of processing. The fee is nonrefundable should the application be denied [2.1][3.1].
- All games conducted must comply with all the requirements of the rules and regulations adopted pursuant to the Louisiana Charitable Gaming Law [2.1].
- The organization must not be denied a license or have its license suspended, revoked, or refused to renew solely on the basis that it has not qualified with the Internal Revenue Service for an exemption from federal income tax, provided that the organization demonstrates or establishes, by a preponderance of the evidence, that it is a legitimate nonprofit organization eligible under the Louisiana Charitable Gaming Law and is not otherwise eligible for tax-exempt status under Section 501(c)(3), (4), (7), (8), (10), or (19) of the Internal Revenue Code [3.1].
Note that the Louisiana Department of Justice, Office of Attorney General, regulates sweepstakes promotions provided for in LARS § 51.1726 and the electronic display of sweepstakes winners as provided for in LARS § 51.1727 [1.1][1.3]. However, these regulations do not apply to entities holding sweepstakes or contests to which only the entities’ employees may enter, persons or entities licensed or permitted pursuant to the provisions of Titles 4 and 27 of the Louisiana Revised Statutes of 1950, or any sweepstake, contest, or similar activity authorized and regulated by Title 26 of the Louisiana Revised Statutes of 1950 [1.1][1.3].
Additionally, promotional contests offered in writing or verbally must contain certain disclosures to be lawful in Louisiana [1.2]. Mail solicitations for contest participation must also contain certain disclosures [1.4].
Therefore, if an organization meets the above requirements and complies with the relevant regulations, it can offer contests that involve charity donations in Louisiana.
Source(s):
- [1.1] Sweepstakes promotions
- [1.2] Promotional contests; prerequisites for lawful promotion
- [1.3] Electronic display of sweepstakes winners
- [2.1] Raffles
- [2.2] Eligibility for Charitable Gaming Licenses
- [1.4] Mail solicitations for contest participation
- [3.1] Licensure
Jurisdiction
Louisiana