Left Navigation

Raffles

REG 11.55.5

October 1, 2002 Archived Version (Effective October 1, 2002 through February 10, 2008)

Student Organizations

Authority: Vice Chancellor for Student Affairs

History: First Issued: October 1, 2002. Additional History Information.

Contact Info: Coordinator, Student Organization Resource Center , (919)-515-3323.

It is lawful for any nonprofit organization or association, recognized by the Department of Revenue and the General Assembly of North Carolina, as tax-exempt, to conduct raffles in accordance with the following requirements:

1. For purposes of this section "raffle" means a game in which the prize is won by random drawing of the name or number of one or more persons purchasing chances.

2. Raffles shall be limited to two per nonprofit organization per year.

3. The maximum cash prize that may be offered or paid for any one raffle is one thousand dollars ($1,000) and if merchandise is used as a prize, and it is not redeemable for cash, the maximum fair market value of that prize may be twenty-five thousand dollars ($25,000). No property may be offered as a prize in a raffle.

4. Raffles shall not be conducted in conjunction with bingo.

5. No less than ninety percent (90%) of the net proceeds of a raffle shall be used by the nonprofit organization or association for charitable, religious, educational, civic, or other nonprofit purposes. "Net proceeds of a raffle" means the receipts are less than 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.

6. Any person who conducts a raffle in violation of any provision of this section shall be guilty of a misdemeanor. Upon conviction that person shall not conduct a raffle for a period of one year.