Promotions are one way to raise funds for your ministry, but they also can introduce some complications, especially legal problems if they aren’t organized according to federal and state laws. By following charitable gaming laws, churches can avoid difficulties when they host such promotion.

• Know your state laws
• Raffles: Raffles are more difficult to classify. Because raffles include a prize, luck, and consideration they are considered lotteries in some states. In these states, hosting a raffle can be considered a felony, punishable by up to two years in prison or fines of up to two thousand dollars.
• Many churches host weekly bingo nights as a fun way to raise money for their ministry. While bingo is legal for non-profit organizations in most states, churches and other charitable organizations may need to register their bingo hall. Because laws differ by state, contact a local attorney before setting up a bingo night at your church
• Prize descriptions. Disclose the retail value of all prizes. If the prize has a retail value of more than $600, the ministry may be required to issue a 1099 tax form to the winner. For more information, see this IRS resource.
• For more information on promotions and what should be included in official rules, the United States Postal Service provides a helpful Guide to Sweepstakes and Lotteries.

This entry was posted on March 25, 2015 at 9:40 pm. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Posted in Church Risk Church Safety by Scott Stuart Comments Off on Keeping It Legal