Tips from the Treasurer - Raffles

See also: Gifts

PTAs in California may raise money by conducting raffles, as long as at least 90 percent of the gross receipts from these raffles go directly to beneficial or charitable purposes in California.

However, before conducting a raffle, a PTA must register with the state Attorney General’s Registry of Charitable Trusts.

The raffle annual registration form (CT-NRP-1) must be mailed to the Registry with a $20 registration fee. The Attorney General’s web site states that the forms must be submitted by September 1 of the year (September 1 through August 31) in which you expect to hold a raffle. However, raffle applications are accepted throughout the year and should be submitted at least 60 days prior to the raffle date.

A raffle registration is good for 12 months — from September 1 through August 31 — and must be renewed annually.

A separate disclosure report is required for each raffle that is held. The report may be filed with the Registry of Charitable Trusts anytime after the conclusion of a raffle, but must be filed by no later than September 1 of each year for activities in the current registration period.

The required information must be provided on the Nonprofit Raffle Report form (CT-NRP-2). Basically, the organization must report the date and location of the raffle held; total funds received from the raffle; total expenses for conducting the raffle; the charitable or beneficial purpose for which raffle proceeds were used or the amount and organization to which proceeds were directed.

PTA councils, districts and units that have incorporated separately must register as a public benefit corporation with the Attorney General's Registry of Charitable Trusts prior to submitting a Raffle Registration application. All other PTAs are exempt.

More information from California State PTA may be found at:
www.capta.org/sections/finance/fundraising.cfm

To get more information from the Attorney General’s office and to download the required forms, go to:
www.ag.ca.gov/charities/raffles.htm

As printed in the October 2008 issue of "Orange Leaves".