Fundraising legalities

[as2]

Looking for some info with regards to legalities of certain fundraising methods. For instance, making a lottery. Obviously the laws vary by location, but not even sure where to start with it. If anyone has experience with the legal side (like giving cash prizes, possible gambling/lotto law infringements) or knows a good place to find more info, I'd greatly appreciate it.

[Zevi16]

Looking for some info with regards to legalities of certain fundraising methods. For instance, making a lottery. Obviously the laws vary by location, but not even sure where to start with it. If anyone has experience with the legal side (like giving cash prizes, possible gambling/lotto law infringements) or knows a good place to find more info, I'd greatly appreciate it.

Just as an FYI. NJ is horrible with these laws. NYC is way easier.

[ExGingi]

Just as an FYI. NJ is horrible with these laws. NYC is way easier.

Wow. NJ really is a charity hostile state. No charitable tax deduction, and now you are saying that they are bad with fundraising activities too.

[Zevi16]

Wow. NJ really is a charity hostile state. No charitable tax deduction, and now you are saying that they are bad with fundraising activities too.

If you are applying for a gaming license for a charity event it can take up to 2 years whereas NY can take under 2 months.

[joey89]

Another point.
If you would like to issue tax deductible receipts there needs to be a way to register for the raffle for free

[as2]

This would be in multiple states most likely. If a cash prize is not given, would a gaming license still be needed? Is it for any prize? I appreciate the feedback so far, I'll look into the applicable states on my own as well.

[NoC]

Old thread.
Seems like every big organization these days throws a significant raffle/auction ect. Are these all done officially with registering? Is it an area that's not really enforced so people don't worry? Either way, do they give tax deductions?
Anyone have any advice in this area?

[JMHO]

Are these all done officially with registering?

Sorry, can you please elaborate what the question is?

[NoC]

Sorry, can you please elaborate what the question is?

Legally raffles are regulated by the state game and chance commission. And therefore you need to be approved and register your raffle. There's a bunch of requirements and regulations etc

[JMHO]

Legally raffles are regulated by the state game and chance commission. And therefore you need to be approved and register your raffle. There's a bunch of requirements and regulations etc

Yes, and what is your question?

[NoC]

Yes, and what is your question?

My question is: when a random kollel, yeshiva or chessed fund makes a raffle for a significant prize, are they registering with the government or not? If not, is the reason because there isn't a  big risk of being 'caught'? Or am I just mistaken about the need to be compliant? Or are they all just ignorant?
Additionally, is it normal for organizations to give tax receipts for raffle tickets (personally I know I have received) and if so how do they get around the fact that it isn't technically a donation?
It's not just the mom and pop orgs doing this, and I have very seldom seen official terms posted on raffle sites.

[ckmk47]

My question is: when a random kollel, yeshiva or chessed fund makes a raffle for a significant prize, are they registering with the government or not?

I think if you can submit a raffle ticket without giving a donation, some of those rules don't apply.  Many chinese auctions have a disclaimer somewhere saying you can submit a ticket without paying for it.

[WonderingYid]

I think if you can submit a raffle ticket without giving a donation, some of those rules don't apply.  Many chinese auctions have a disclaimer somewhere saying you can submit a ticket without paying for it.

Most of them do.
Excerpt of Oorah T & C:
No Purchase or Donation Necessary to Enter or Win.  A purchase or donation will not increase your chances of winning.
Alternative Method of Entry.  You may also enter by mailing a handwritten 3 x 5 card with your full name, postal address, email address and telephone number. to Oorah Donor Sweepstakes, 1805 Swarthmore Avenue, Lakewood, NJ 08701. Only one card will be allowed per envelope. The card must specify which prize the entry is for.

[Jack Last]

Most of them do.
Excerpt of Oorah T & C:
No Purchase or Donation Necessary to Enter or Win.  A purchase or donation will not increase your chances of winning.
Alternative Method of Entry.  You may also enter by mailing a handwritten 3 x 5 card with your full name, postal address, email address and telephone number. to Oorah Donor Sweepstakes, 1805 Swarthmore Avenue, Lakewood, NJ 08701. Only one card will be allowed per envelope. The card must specify which prize the entry is for.

Maybe this should be in the Halachic thread but I wonder if Halachically it would be permitted to do that based on the fact that this clearly used just to avoid regulations??

[JMHO]

Maybe this should be in the Halachic thread but I wonder if Halachically it would be permitted to do that based on the fact that this clearly used just to avoid regulations??

Permitted to do what?

[Jack Last]

Permitted to do what?

To send in a letter to get free raffle tickets.
(Even though you will have to get individual envelopes and cards and drop them off or pay postage and it might not be worth the effort.)

[ckmk47]

Maybe this should be in the Halachic thread but I wonder if Halachically it would be permitted to do that based on the fact that this clearly used just to avoid regulations??

Now that there are answers, I understand your question.  It is:
Because the ability to enter the raffle free is only there because of government regulations, and this is a fundraiser, should people be allowed halachicly to enter the raffle without a donation?
My answer: Dina d'machusa dina.  The rules and regulations of raffles should stand. 

[Jack Last]

רמ"א חו"מ שס"ט ח' יש אומרים דלא אמרינן דינא דמלכותא דינא אלא במסים ומכסים התלויים בקרקע, כי המלך גוזר שלא ידורו בארצו כי אם בדרך זה, אבל בשאר דברים, לא. ויש חולקים וסבירא להו דאמרינן בכל דבר דינא דמלכותא דינא

ועי' שו"ת הרשב"א החדשות סימן שמב
דווקא בחוק שהמלך מקפיד שגם היהודים יקיימו – גם בעבר בדרך כלל המלכים העניקו אוטונומיה שיפוטית ליהודים לדון בדיני התורה בדין שבין יהודי לחברו, ולכן הפסיקה של בתי הדין של היהודים כלל לא עמדה בניגוד לדינא דמלכותא שנחקקו דווקא למי שבא לדון בבתי המשפט הכללים, אולם חוקים שהמלך חוקק בהקפדה שגם היהודים ינהגו בהם כי יש בהם תקנה לכל בני המדינה - דינא דמלכותא דינא.

כיום רווחת השיטה שכל החוקים נקבעים על ידי בתי המחוקקים, ולפי זה ההגבלה הראשונה אינה שייכת, אולם ההגבלה השניה שהמלכות אינה מקפידה כיצד דינו היהודים בינם לבני עצמם שייכת ברוב המדינות