Raffles

Most student organizations are not qualified to conduct raffles in the State of Texas. Raffles involve paying money for the chance to win a prize of greater value, which is considered gambling. Instead of raffles, SALD suggests that student organizations hold "Free Drawings" in which no money is exchanged.

The Charitable Raffle Enabling Act, effective January 1, 1990, permits "qualified organizations" to hold up to two raffles per calendar year.

Two types of student organizations may conduct raffles:

• An association organized primarily for religious purposes that has been in existence in Texas for at least 10 years.
• A nonprofit organization that has existed for at least the three preceding years, during which it has had a governing body duly elected by its members and is exempt from federal income tax under Section 501(c), Internal Revenue Code; does not participate in any political campaign. [A copy of your organization's IRS Letter of Determination verifying 501(c) status will be required.]

Student organizations may conduct raffles on campus for qualified off-campus organizations. Any organization conducting a raffle on campus must complete a table application and follow university ticketing procedures. Raffle tickets may not be advertised statewide or through paid advertisements. Each raffle ticket must state the name and address of the organization holding the raffle, the name of an officer of the organization, the price of the ticket, and a general description of each prize to be awarded that has a value of over $10. A prize may not be money. Only members of the organization may sell tickets. No one may be compensated directly or indirectly for organizing or conducting a raffle or for selling raffle tickets.

For further information on raffles, refer to http://www.oag.state.tx.us/AG_Publications/txts/raffle.shtml or contact Student Activities and Leadership Development (SSB 4.104).