RAFFLES AND STATE LAW

Raffles and Fund-Raising at G.A.M.E.

As all of you know, Eclectic Endeavors is a program of the Springfield Regional Arts Council (SRAC) and we operate financially under the umbrella of their 501(3)(c).  In this regard we are allowed to do many things that individuals and business are not allowed to do.

During our event we sell raffle tickets to help raise funds towards our expenses and towards our goal of creating an educational scholarship fund that will be announced this year at G.A.M.E. Year 8.  According to Missouri State Law (as detailed below) we are in compliance, and can sell raffle tickets to accomplish these goals.

At G.A.M.E., Eclectic Endeavors does its’ best to conduct business within federal and sate law, and this includes making sure all our attendees do the same.  Unless you are a charitable or service organization as described by the terms in the Missouri Constitution (detailed below), you CANNOT conduct raffles.

If you are a charitable or service organization, you must conduct any said raffles in accordance with the law.  As it states below “…no part of the net earnings inures to the benefit of any private shareholder or individual member of such organization.”  You should also keep very detailed records of how much you collected, to protect your organization.

One last thing that Eclectic Endeavors request with any raffles conducted within the hours of G.A.M.E., please make sure that you communicate clearly with ticket buyers where the funds are going.   If they are going towards your club / organization or a different local charity or whatever.  We want to make sure that no one is confused about different raffles taking place within G.A.M.E. that are not part of Eclectic Endeavors and our goals towards creating an educational scholarship fund.

Thank you

Excerpts from:
http://www.gambling-law-us.com/Charitable-Gaming/Missouri/
Current through Sep. 1, 2014

Missouri Constitution
Art. 3
Section 39(f)

Section 39(f). Any organization recognized as charitable or religious pursuant to federal law may sponsor raffles and sweepstakes in which a person risks something of value for a prize. The general assembly may, by law, provide standards and conditions to regulate or guarantee the awarding of prizes provided for in such raffles or sweepstakes.

Missouri Revised Statutes
313.005. Definitions

As used in sections 313.005 to 313.080, the following terms shall mean:

“Charitable organization” , any organization which is organized and operated for the relief of poverty, distress, or other condition of public concern within this state or organized for financially supporting the activities of a charitable organization as hereinbefore defined. In order to qualify as a charitable organization, no part of the net earnings of the organization may inure to the benefit of any private shareholder or individual member of the organization. Charitable organizations must have obtained an exemption from the payment of federal income taxes as provided in section 501(c)(3) of the Internal Revenue Code of 1954, as amended;

“Service organization “, any organization commonly known as a civic club or county fair or other organization if such organization is a religious, charitable, fraternal, veteran or service organization as described in article III, section 39(a) of the Missouri Constitution and of which no part of the net earnings inures to the benefit of any private shareholder or individual member of such organization. Service organizations must have obtained an exemption from the payment of federal income taxes as provided in section 501(c)(4), 501(c)(5) or 501(c)(7) of the Internal Revenue Code of 1954, [FN1] as amended;

313.080. Violations, penalty

Any person who violates any provision of sections 313.005 to 313.080 shall be guilty of a class A misdemeanor.