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TexLaw, Attorney
Category: Legal
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Experience:  Lead trial/International commercial attorney licensed 11 yrs
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Our non-profit (501c3) wants to conduct a car raffle. Our

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Our non-profit (501c3) wants to conduct a car raffle. Our organization is based in Colorado but we want to sell tickets in multiple states. We want to ensure that we comply with all laws and regulations. Where can find information on how to conduct properly? Thank you!

Thank you for your question.

Instead of approaching the raffle from the position of trying to make it comply with the laws of every state in which you are selling the tickets, you should instead sell the tickets under the condition that Colorado law applies (as that is the state where the charity is located). You would simply write this as a term and condition on your ticket.

To determine the rules regarding this sort of raffle in Colorado, you will need to look at the rules published by the Colorado Secretary of State at:

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Best Regards,
Customer: replied 4 years ago.



I read the CO rules regarding the raffle of a car and like your approach of putting "CO law applies" in terms and conditions on ticket.


I didn't see in the CO regulations any information on responsibility for taxes, if any, for state or federal. Where can I find the requirements for tax compliance or is this the responsibility of the winner?


Thank you.

Thank you for you response.

On the federal, consult the following:

Your raffle ticket should also make it a condition that the winner is responsible for any and all federal and state taxes. The ticket should also state that the taxes must be paid up front before you turn over the keys to the vehicle.

The transfer of the property will be taxed upon the value of the vehicle since it is a "prize".

There is not a single source which you can consult regarding this specific issue. However, here are some sources that are helpful: 7474

In the end, when you make it the winner's issue, you simply will keep the car until the taxes are paid by the winner.

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