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

Here is the response to your query:

Requirements for Offering Contests Involving Charity Donations in New Jersey

If you plan to offer contests that involve charity donations in New Jersey, you must comply with the following requirements:

  1. The contest must be a contest of skill, not a game of chance [2.1].
  2. The charity must be a qualified organization as defined by NJAC 15:27-2.6. To be designated as a qualified organization, the organization must meet certain requirements, including proof of nonprofit corporate status, tax-exempt status, and documentation of arts, history, or humanities services or programs that provide a New Jersey public benefit [1.4].
  3. The donation must be consistent with the terms of the New Jersey Cultural Trust Act [1.1].
  4. If the restricted donation is equal to or greater than $100,000, the donation shall be considered a large gift donation. The Board shall then disburse from the matched funds transferred from the Trust Account to the Trust Fund an amount equal to 20 percent of the donation received by the qualified organization. However, the aggregate of such disbursements shall not exceed 20 percent of the money transferred to the Trust Fund from the Trust Account by virtue of the certification process [1.2].
  5. The Board reserves the right to inspect the financial records of a qualified organization whose restricted donation has been or is in the process of being certified, require a statement from the qualified organization’s independent auditor confirming that any restricted donation of money, real property, or an item of monetary value is being applied to the organization’s endowment, request additional documentation, affidavits, appraisals, etc. to confirm the value or ownership of a restricted donation, and refuse to certify a donation it deems unacceptable to the intent of the Act or that may expose the Cultural Trust or the State of New Jersey to liability [1.1].
  6. Recipients of matching funds for large gift donations are required to submit annual audits for a period of five years following the receipt of the match from the Fund. The audit shall include a detailed schedule of the endowment. The Board reserves the right to periodically inspect the financial records of organizations that receive matching funds for certified large gift donations [1.5].

Conclusion

To offer contests that involve charity donations in New Jersey, you must ensure that the contest is a contest of skill, the charity is a qualified organization, the donation is consistent with the terms of the New Jersey Cultural Trust Act, and comply with the procedures for large gift-restricted donations.

Source(s):
Jurisdiction

New Jersey