RAFFLES Policy Code: 5250
With the written permission of the Chatham County Board of Education, school-related clubs and organizations may conduct raffles, for the purpose of supporting school programs and extracurricular activities. Any organization desiring to conduct a raffle must notify the superintendent in writing, at least 30 days in advance. The advance notice must include the date, time, and place of the raffle, a description of the prizes to be awarded and their cost; and a summary of how the profit will be spent. All raffles must comply with the following rules:
- The sponsoring organization must be recognized by the Department of Revenue as tax-exempt, pursuant to G.S. 105-130.11(a).
- The maximum cash prize that may be offered or paid for any one raffle is $1,000 and if merchandise is used as a prize, and is not redeemable for cash, the maximum fair market value of that prize may not exceed $50,000. No real property may be offered as a raffle prize. Each organization may conduct a maximum of two raffles each calendar year.
- At least 90% of the net proceeds of the raffle will be used by the sponsoring organization for educational purposes. The "net proceeds" of the raffle means the receipts less the cost of prizes awarded.
- None of the net proceeds of the raffle may be used to pay any person to conduct the raffle, or to rent a building where the tickets are received or sold or the drawing is conducted.
- All funds raised by raffles must be deposited, maintained, accounted for, and disbursed in compliance with board policies on school-related organizations.
Legal References: G.S. 14- 309.15; 105-130.11
Adopted: May 19, 1997
Revised: August 6, 2007