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

Here is the response to your query:

Charitable Contests in North Dakota

In North Dakota, there are no specific provisions that prohibit charitable contests that involve donations [1.1]. However, if you plan to hold a contest, you must comply with the requirements for contests, including prize restrictions and requirements, and ticket limitations and requirements.

Prize Restrictions and Requirements

If you plan to offer prizes in your contest, you must comply with the prize restrictions and requirements outlined in NDAC Section 99-01.3-05-03. The restrictions include that no prize may be real estate, a ticket for entry into another raffle, or a live animal except for beef or dairy cattle, horse, bison, sheep, or pig. A prize must be an item that may be legally owned and possessed and has a value or a right to a free service. A cash prize may be based on a percentage of gross proceeds. However, a single cash prize cannot exceed twenty-five thousand dollars, and the total cash prizes cannot exceed twenty-five thousand dollars during a day. The maximum cash prize limits of this section do not apply to a public-spirited organization that supports amateur collegiate athletics. The public-spirited organization’s primary purpose must include support of collegiate athletics [2.1].

Tickets Limitations and Requirements

If you plan to sell tickets for your contest, you must comply with the ticket limitations and requirements outlined in NDAC Section 99-01.3-05-02. The requirements include that each ticket is a separate and equal chance to win with all other tickets sold. A person may not be required to buy more than one ticket or to pay for anything other than the ticket to enter a contest. A ticket must have a detachable stub that is consecutively numbered. A ticket must be issued as a receipt to a player. An organization may not print any word or phrase on promotional material or advertising that implies or expresses that a purchase of the ticket is a charitable donation [2.2].

Conclusion

There are no specific provisions that prohibit charitable contests that involve donations in North Dakota. However, if you plan to hold a contest, you must comply with the prize restrictions and requirements and ticket limitations and requirements.

Source(s):
Jurisdiction

North Dakota