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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10569
Experience:  30 years of corporate, litigation and international law
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Can I run an online raffle non profit? The non profit is

Customer Question

Can I run an online raffle for my non profit? The non profit is incorporated in the state of SD and we have our tax exempt status. Also, can a portion of the funds from ticket purchases be used to pay for the raffle prize?
Submitted: 1 year ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 1 year ago.

Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for.

The answer to both your questions is yes. You can conduct a raffle which is a lottery because you are a charitable organization. You can use the proceeds to buy the lottery prize because only the net proceeds have to go to the charitable purpose. The costs of operating the lottery, including paying for the prize and paying people to sell the tickets are proper deductions. Here is a link to the relevant SD statutes.

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