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

Yes, you can offer contests that involve charity donations in Washington. However, you must comply with the state’s regulations on charitable organizations and commercial fund-raisers. Here are the requirements:

Charitable Organizations and Commercial Fund-raisers

Charitable organizations and commercial fund-raisers must register with the Secretary of State before conducting any solicitations ^[1.1]. An application for initial registration and renewal as a charitable organization must be submitted on the form approved by the Secretary and must contain the required information ^[1.4]. Similarly, an application for registration and renewal as a commercial fund-raiser must be submitted on the form approved by the Secretary and must contain the required information ^[1.3].

Raffle Prizes

If you plan to offer raffle prizes, you must comply with the state’s regulations on raffle prizes ^[2.2]. Organizations must own the prizes offered to winners before the date of the drawing. At the time and date of any raffle drawing, the organization must have on deposit an unencumbered amount of money that is equal to or greater than all cash prizes being offered in the raffle. Raffle prizes must be available at the time and place of the drawing. For licensees, raffle prizes must not exceed forty thousand dollars per prize or three hundred thousand dollars in total raffle prizes in a license year, except as authorized ^[2.2]. If you plan to offer raffle prizes that exceed these limits, you must submit a raffle plan to the commission for approval ^[2.5].

Electronic Raffle Participants

If you plan to offer electronic raffle contests, you must provide rules to electronic raffle participants. Electronic raffle licensees must post rules at stationary point of sales locations and on their website. In addition, rules must be made available from ticket sellers. Raffle rules must include at least the required information ^[2.4].

Enhanced Raffles

If you plan to conduct enhanced raffles, you must have an independent audit conducted on each enhanced raffle and the associated smaller raffles ^[2.1]. You must hire an independent, certified public accountant or firm licensed by the Washington state board of accountancy to conduct the audit. The auditor’s report must include specific information ^[2.1].

In summary, to offer contests that involve charity donations in Washington, you must register as a charitable organization or commercial fund-raiser, comply with the state’s regulations on raffle prizes if you plan to offer them, provide rules to electronic raffle participants if you plan to offer electronic raffle contests, and have an independent audit conducted on each enhanced raffle and the associated smaller raffles if you plan to conduct enhanced raffles.

Source(s):

• [1.1] Charitable organizations and commercial fund-raisers—Registration required—Public record—Registration not endorsement.
• [2.1] Independent audit required for enhanced raffles.
• [2.2] Raffle prizes.
• [1.3] Commercial fund-raisers—Application for registration or renewal—Contents—Fee.
• [2.4] Provide rules to electronic raffle participants.
• [1.4] Charitable organizations—Application for registration or renewal—Contents—Fee.
• [2.5] Requesting commission approval prior to offering raffle prizes exceeding forty thousand dollars per prize or three hundred thousand dollars in a license year.

Jurisdiction

Washington

• Gaming