I want to know if it will be legal to get 1 million people to donate $1, and later hold a raffle and pay the winner’s charitable cause 500K

UPDATED: Aug 19, 2011

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I want to know if it will be legal to get 1 million people to donate $1, and later hold a raffle and pay the winner’s charitable cause 500K

Asked on August 19, 2011 Florida


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

From the general question that you have posed, your suggested raffle by you to hold a raffle where one million people donate a dollar per ticket and pay the winner's charitable cause one half of the money generated would most likely be illegal under Florida state law as well as the laws of the other states in this country and territories.

Every state has stringent requirements for raffles where the entity holding the raffle needs to be a registered tax exempt entity under Internal Revenue Service guidelines with proper applications and forms filed both at the federal and state level with a registered tax identification number on file.

There are also required applications and reporting forms for the suggested raffle at the state and local level with detailed information as to where the money from the raffle will be deposited and ultimately distributed.

The reason for these stringent guidelines and requirements is that there have been a lot of scams in the past over proposed raffles where the money is paid for tickets as part of the raffle but there has been no payout to the winner.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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