Rules for Raffles of Houses in the State of Florida
- Raffles are regulated by state government gaming and drawing statutes.holding winning lottery image by drx from Fotolia.com
States have various regulations for events that fall under the category of "gaming." In Florida, raffles are defined as prize-oriented activities in which tickets are sold to the public and each ticket has a chance of winning its bearer an item or service. They are legislated under the category of "drawing" or "drawing by chance." - In Florida, only non-profit organizations can hold raffles. To qualify as a not-for-profit, your organization must have a Letter of Determination from the IRS identifying the organization as a qualified non-profit.
- Any means of publicizing the raffle--whether in print, online, mass media or by sales associates---must contain and disclose certain information. These materials must clearly state the raffle rules, the hosting organization's name and address, how the prize or prizes were purchased or donated, when and where the raffle drawing will be held and whether the winner must be present at the drawing.
- The organization hosting the drawing will be holding an illegal event if the winner of the raffle has been predetermined in any way, that any fee other than that of each raffle ticket is required for participation, or when less tickets are drawn than there are prizes are available. Furthermore, the hosting non-profit cannot discriminate against any ticket holder for any reason, withhold award of any prizes or cancel the drawing without fully refunding every ticket.
- Non-profits, for-profit companies or individuals who violate Florida's laws about drawings fall under the category of practitioners of "deceptive and unfair trade practices." Violation of the raffle statute is a second-degree misdemeanor punishable by court-determined fines.
- This statute specifies that individuals and for-profit businesses may not raffle a house or any real property belonging to you or your for-profit company. However, you may be able to donate your house to a non-profit, as a charitable donation, and receive tax credits for the donation. Because of the sizable value of such a transaction, it is wise to have an attorney familiar with gaming and personal property law broker the donation. Online resources such as Findlaw.com can help you identify and retain such an attorney. If you opt to donate your home to a charity for the purpose of helping it generate revenues through a raffle, you may want to familiarize yourself with charities available; sites like charitynavigator.org can help you find the right charity.
