Raffle Laws In Ct

Posted By admin On 06/04/22

Frequently Asked Questions from Charitable Organizations and Paid Solicitors

A raffle can generate buzz and revenue for a charity. It can draw from an especially large pool of ticket buyers if it's accessible online. Here's the rub: once your charity announces a raffle, your nonprofit faces legal compliance issues. Understanding the rules and the potential risks involved will protect your nonprofit from such issues. If your charity does not carefully follow all raffle laws, you could face criminal charges. Qualifying Your Organization to Hold a Raffle. To hold a legal raffle in Florida, your charity must first be a qualifying nonprofit. The Internal Revenue Service (IRS) must recognize your organization as having federal 501(c)(3) status.

Sections 21a-175 through 21a-190l, Connecticut General Statutes

How does an organization register? Application for registration is made annually. An organization which has never been registered with Connecticut files an initial application using the initial application form, which can be downloaded from the Department of Consumer Protection website.Already-registered organizations receive a renewal registration application by mail from the Department.If a registered organization does not receive a renewal form or needs another copy, it can email dcp.publiccharities@ct.gov and request a renewal form. There is an annual $50.00 registration fee. With both applications, the organization is required to submit a financial report of the organization’s most recent fiscal year as well as information about the organization, its personnel, and its purposes. The Department will mail a verification of registration to you when it is processed. You can check the status of your registration at any time on the Department of Consumer Protection website.

I want to fundraise/hold a fundraiser/event for X charity, do I have to file anything with Public Charities? In order to fundraise for an existing charity, the prospective fund raiser will need to have the charity’s WRITTEN permission to use its name. Most often, charities have development offices to assist volunteer fund raisers. Such a volunteer does not have to file anything on behalf of the charity, but he or she should make sure the charity is registered with Public Charities prior to any type of solicitation.

What financial information is required with the registration application?

A copy of an Internal Revenue Service Form 990, Form 990N, Form 990-EZ, or Form 990-PF(whichever is appropriate for the organization), for its most recently completed fiscal year end. If an organization files a Form 990N, it must complete a Form 990 or 990EZ for state purposes. Please note that even if the organization is not exempt from federal taxation and, therefore, does not file one of these forms with the IRS, it still must complete the form for state purposes.

If the IRS form the organization submits with its registration application reports gross receipts exceeding $500,000 (excluding grants or fees from government agencies and revenue from trusts held by a trustee, usually a bank, for the benefit of the organization), it must also file an audit report of an independent public accountant. The auditor's opinion can relate to the IRS form or to a separate set of audited financial statements. It is very important to observe the distinction between gross receipts and gross revenue for purposes of the audit threshold. Gross receipts include the total income from an activity without deducting expenses related to the activity. For example, if $50,000 worth of raffle tickets are sold and the prizes cost the organization $30,000, the full $50,000 is counted toward gross receipts, not just the $20,000 the organization netted.

If the organization is newly organized and has not yet completed its initial fiscal year, a financial report will not be required. The organization will have to include a financial report when and if it renews its registration.

Do I need to file an audit? What kind of audit is required? If the IRS form the organization submits with its registration application reports gross receipts exceeding $500,000 (excluding grants or fees from government agencies and revenue from trusts held by a trustee, usually a bank, for the benefit of the organization), it must also file audited financial statements, complete with the signed auditor’s report on the auditor’s letterhead. Only an audit under generally accepted auditing standards fulfills the requirement, however, such statements may use a special purpose framework (formerly referred to as Other Comprehensive Basis of Accounting, or OCBOA) such as the cash basis or tax basis. If a special purpose framework is used, the organization must follow standards for special purpose framework reporting and follow the guidance for disclosure in generally accepted accounting principles and include any necessary note disclosure.

What if a registration is rejected? Registrations are not approved unless all the required forms, fees and required attachments are included with the application.If your application is incomplete, the Department will email a notice to you which will detail any additional information or material you must provide to complete your application.Once the application is complete, the Department will send an approval of your registration application. Any organization whose registration is deemed deficient may request a hearing on its noncompliant status within seven days after receipt of the notice that the registration application is deficient. A hearing shall be held within seven days after the Department receives a request, and a decision must be issued by the Department no later than three days after the hearing.

Do I have to register with Public Charities first or get my 501(c)(3) status with the IRS first? An organization that wishes to solicit charitable funds in Connecticut is not required to be a 501(c)(3) or incorporated as a non-stock corporation prior to registration with Public Charities. Charities MUST register with Public Charities BEFORE any type of solicitation in Connecticut. They do not have to wait until they are a 501(c)(3) charity. Some charities need to start soliciting in order to raise funds to pay the IRS application fee and any other costs associated with becoming a 501(c)(3) IRS-recognized charity. If a charity does solicit before obtaining this status, the charity should not misrepresent its tax-deductible status. More information regarding tax exempt status can be obtained by calling the IRS at 1-877-829-5500.

My organization is located outside the State of Connecticut and our only contact is via the internet, so do we need to register? A set of principles devised during a meeting of Charities officials in Charleston, South Carolina, called the Charleston Principles, addresses the issue of internet solicitation. The State of Connecticut has not legislatively adopted the Charleston Principles, but we do abide by them. Pursuant to the Charleston Principles, if an organization is located in CT and only solicits via the internet (donate button on website) it needs to register in CT. If an organization is located outside of CT and only solicits via the internet (donate button on website), it does not need to register. This assumes that a resident of Connecticut just happens across the out-of state organization's website on their own accord; the organization did not direct the resident to the website. For instance, a Connecticut resident wants to help dolphins and searches the internet for a group that helps dolphins. If the organization that the resident chooses is located outside of CT, the organization does not need to be registered in the state, just because someone in Connecticut happened upon its website. However, if the out-of-state charity decides to contact this Connecticut resident for another donation, or otherwise solicits a resident of Connecticut, it will need to register before doing so.

Does my organization/private foundation/client need to file a Form 990PF with Public Charities? Per Internal Revenue Services instructions for private foundations filing the Form 990PF, the IRS requires that a foundation which files a 990PF with the IRS also file a copy with the State Attorney General’s office in the State in which it is located. (Thus, if a foundation is located in Connecticut, it needs to send a copy of its Form 990PF to: Connecticut Attorney General's Office, 55 Elm St., 4th Flr., Hartford, CT 06105) This is an IRS rule that is not part of the Connecticut Solicitation Act, and further information can be obtained from the Attorney General’s office. If the foundation solicits funds or charitable contributions, or if it is a privately-funded foundation and solicits funds from the public, it should be registered with Public Charities and also send a copy of the Form 990PF to the Attorney General's office per IRS instructions. If it is strictly privately-funded it only needs to file with the Attorney General's Office.

Does a claim for exemption need to be re-filed? No, a claim of exemption is only filed once, as long as the charity continues to qualify for the exemption. For example, if an organization claims an exemption using the $50,000 threshold exemption, and it goes over the limit 2 out of 3 years, it will need to register. If it then goes back under $50,000 threshold, it may reapply for exemption.

Does my group qualify for a religious exemption? Any duly organized religious corporation, institution or society may apply for an exemption using Form CPC-54. The organization may be requested to submit additional information that the Department may require to substantiate this exemption.

What is my charity’s renewal date? New applications are always due eleven (11) months after the organization’s fiscal year ends. For example, December year-ends are due by November 30.

Raffle

Why is the annual registration less than 12 months? Registrations always expire on the last day of the eleventh month following the end of the organization’s fiscal year-end. This means your initial registration period may be less than 12 months, but it may also be more than 12 months. All timely renewals will be given the full 12-months time.

How much do I owe? The registration fee is $50. If the registration is received after it has expired, a $25 per-month late fee is charged. The late fee is charged if the report is received, not postmarked, after the expiration date. The late fee is charged for every month or any part of a month the report is late.

I sent the $25 late fee, why do I owe another $25? Late fees continue to accrue every month until the report is accepted.

My organization wants to hold a raffle and I was told I needed to contact your office? All charitable gaming activities like raffles, bazaars and bingos are regulated by the municipality where the event will be held. Contact those local offices for permitting requirements.

My organization wants to hold an auction, do I need a permit for that? The Solicitation Act does not regulate the type of fundraising an organization conducts. Fundraising can be anything from a lemonade stand to a raffle, to whatever creative idea an organization may have. The organization may need to contact their town, or the local or state police for more information regarding requirements or restrictions.

How do I withdraw my charitable registration?If an organization has decided to no longer solicit funds in the State of Connecticut, it may just allow its registration to expire. The organizations may also go to www.elicense.ct.gov and log into their account and submit an 'Online Inactivation'. As a final option, a letter or email requesting a registration withdrawal maybe emailed to dcp.publiccharities@ct.gov.

Questions from Paid Solicitors and Fund Raising Counsel

I am a Fund Raising Counsel, what are my filing requirements?In accordance with the Act, there must be a contract between you and the charity, the charity must be registered, and you are required to send a copy of such contract to Public Charities.

Is what I do considered a Fund Raising Counsel or Paid Solicitor?Please see the statutory definitions in Section 21a-190a(6) and (7), Connecticut General Statutes for the distinctions.

Other questions -- incorporation, tax exemptions, games of chance

Registering with the Department of Consumer Protection to solicit funds, or claiming an exemption from registration, is unrelated to incorporating, obtaining tax exemption (state and federal) or being licensed to conduct games of chance (i.e. raffles, Las Vegas nights). There are other state and federal agencies you need to contact for information about those matters.

Incorporating

Although a charity does not need to incorporate, there may be advantages in doing so. We urge you to seek professional advice.In Connecticut, organizations incorporate through the Secretary of the State, 30 Trinity St., Hartford, CT 06106. Website: www.sots.state.ct.us

Tax Exemption

If an organization seeks exemption from federal income tax, the organization must apply to the Internal Revenue Service.Information about this can be obtained from the IRS by calling 1-800-829-FORM (3676) and ordering Publication 557, 'Tax Exempt Status for Your Organization,' or on the web at www.irs.gov. We urge you to seek professional advice.

State of Connecticut tax matters, including exemption from paying sales tax on products purchased by a charity, are handled by the Connecticut Department of Revenue Services, 25 Sigourney Street, Hartford, CT06106. Website: www.ct.gov/drs

Games of Chance

Raffle Laws In Ct

Connecticut law allows certain organizations to conduct games of chance, such as raffles, bazaars, and/or bingo nights. Permits are required. Inquiries and permit requirements regarding games of chance should be directed to the municipal offices in the town where the event is to be held.

Gambling in the United States is a very fluid landscape with more than its share of ebb and flow. The parameters change regularly, and now that state-regulated online gambling is allowed, everyone involved is taking a hard look at the laws and policies governing the various elements of the industry.

Those opposed to gambling attempt to use the laws to support their position, while those who support responsible gambling work tenaciously to expand our options within compliance of existing US laws. The complexity of the legal status of gambling in the US in all its various forms can make it difficult to follow and understand specifically what is and is not considered legal betting.

Our objective in adding this information to our LegalBettingOnline.com resource guide is to provide valuable data that empowers players to make highly informed decisions regarding what types of gambling entertainment effectively meet their needs and preferences through legally sanctioned betting opportunities. We are not attorneys and are providing this guide for informational purposes only**.

Unlawful Internet Gambling Enforcement Act - UIGEA

This is one of the most misunderstood US gambling laws and is surrounded by layers of misinformation and misconception. Many players believe that this law prohibits USA residents from participating in online gambling. This is not true. In fact, the UIGEA law does not address player activity at all nor place any type of restrictions on players themselves. Instead, this law targets banks and financial institutions that knowingly process any transactions related to online gambling.

Our page explaining the Unlawful Internet Gambling Enforcement Act will provide an accurate and understandable explanation of what this law was created for, what specific aspects of online gambling it governs, and how its implementation affects players in the US.

Professional And Amateur Sports Protection Act – PASPA

Paspa (also known as the Bradley Act) was directed specifically at the sports betting industry and provided regulation concerning US-based sportsbook gambling. It has been the center of controversy in the industry recently, bringing into question the law's range of power and presence. This law essentially makes US-based sports betting illegal in all but 4 states.

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However, in May of 2018, through a lawsuit initiated by the state of New Jersey, SCOTUS ruled that PASPA was unconstitutional and the law was struck down. This has dramatically changed the US sports gambling market and has given power back to the states to determine their own will to allow or prohibit sportsbooks from operating within their borders.

Our page explaining the Professional and Amateur Sports Protection Act discusses the law's intentions, reach, and parameters, as well as how state opposition coupled with state-regulated gambling initiatives challenged the law head-on and won.

Of all of the US federal gambling laws, The Federal Wire Act one probably has the most interesting origins of them all. Who doesn't love a 'good guys vs the mob 'story? The Federal Wire Act is also one of the most debated pieces of gambling-related legislation and has sparked a great deal of controversy after the DOJ determined that the law's restrictions do include US-based online gambling. Since that time, the DOJ has issued two contradicting legal opinions in 2011 and 2019 respectively that have each redefined the application of the Wire Act and its associated prohibitions.

2011 DOJ Formal Legal Opinion on Interpretation of the Wire Act

Interestingly enough, the DOJ issued a formal legal opinion in 2011 concerning the reach of the Wire Act, indicating that the law only applies to sports gambling, and does not prohibit other forms of state-based online gambling. This literally opened the door to individual states having the authority to license and regulated domestic online casinos and poker rooms, among other forms of gambling, without violating the Wire Act. Learn more from our page dedicated to explaining the Federal Wire Act and how it impacts legal online sports betting for American players.

2019 DOJ Formal Legal Opinion Again Redefines the Reach of the Wire Act

The DOJ reversed their 2011 DOJ Opinion Memo on the Wire Act in 2019 to reflect a prohibition against all US-based interstate gambling. Casino, lottery, poker, sports betting, and information companies were given a 90 day period to meet new compliance standards or face violating Federal Law. This means servers, data, payment processors, etc. must be located individually within the state the business is operating gambling services in.

The reversal on the DOJ's position on the Wire Act will not dramatically impact those states that have already begun licensing and regulating online gambling within their borders, but it will impact those states that have entered into interstate gambling compacts and already share player pools across state lines. We would not be surprised to see lawsuits against the decision from those states, gambling operators and the software and technology companies providing services in the industry.

In 2014, senators Lindsey Graham of SC and Jason Chaffetz of Utah reintroduced legislation to congress that would restore the wire act. If implemented, RAWA would essentially rewrite and extend the Federal Wire Act of 1961 to make all types of gambling illegal, even if it were already legal on the state level. Marco Rubio of Florida has also recently joined the party and supports RAWA.

What do these 3 senators have in common? They are thought to be in bed with Sheldon Adelson, a multi-billionaire gambling tycoon who operates brick and mortar casinos all over the world. Learn more by reading our page explaining RAWA - Restoration Of Americans Wire Act.

Raffle Laws In Ct

The Interstate Horse Racing Act of 1978, or IHRA, is the law that governs the horse betting industry’s off-track betting locations (OTBs) and interstate betting options in the US. This law, though enacted in 1978, also defines the rules and regulations of simulcast betting on an interstate basis, which was logically extended to domestic online betting with the advent of widespread Internet access in the late 1990s and 2000s.

Though the IHRA makes interstate horse betting legal at the federal level, individual states have the final say as to whether or not they wish to legalize horse racing or offer their residents access to interstate betting. To date, 41 out of 50 US states participate in interstate horseplaying under the auspices of the IHRA, with several other states considering legalizing the industry within their borders.

That said, the Interstate Horse Racing Act does not bar the use of overseas or international racebooks. US residents in most states (excepting WA and CT) can legally use offshore racebooks to bet on the ponies. Best of all, these books offer much greater access to international races, featuring tracks from the US, Canada, Mexico, England, Ireland, the Middle East, Japan, and Australia, among others.

The brick and mortar land-based and floating casinos and poker rooms that are found in various states through the US are all governed by state gambling laws. Each state determines its own laws concerning what type of casino, poker, pari-mutuel, bingo, lottery, and other gambling they will allow within their state borders.

US Federal gambling laws primarily target US-based online gambling and sports betting. The DOJ has determined that each state can also determine their own destiny concerning legal online poker and legal online casino gambling.

It depends on where you are placing your bets. There are no federal laws that prohibit US residents from participating at online casinos, poker sites, bingo sites and legal online sportsbooks that are licensed, regulated and located outside of the United States.

If you restrict your online gambling to these types of legally sanctioned gambling sites, then you will not be breaking the law. We do recommend however that you consider expert input regarding which sites are approved by professionals as providing a safe, high quality and rewarding online gambling experience.

One of the key elements that we examine during our review process is the security profile of each website. We don't provide our approval for gambling websites that simply meet licensing requirements or the lowest industry standards.

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We require that a sophisticated security profile is in place that is comparable to world-class financial institutions. We want to see advanced encryption technology, firewall, and antivirus protection and fraud prevention systems, equipped with a technically trained staff to monitor these systems. These are tall requirements, and only those brands which can meet them are considered for inclusion in our guide.

If you limit your gambling entertainment to websites approved by professionals, then you can be certain that the security and level of protection you are looking for is in place. This is a trait of those sites that are legally licensed and subject to genuine regulatory oversight. Those sites operating outside of legal parameters don't typically take the time to invest in this type of security.

Because the vast majority of all US friendly gambling sites are located offshore, they must be located in a jurisdiction that already offers legal online gambling. They must also be regulated by a governing body under strict oversight. We have a detailed article explaining what a gaming commission is and which jurisdictions are the most reputable in the industry.

Rules For Raffles In Illinois

Additional Gambling Laws By Country

Raffle Laws In Ct Today

**We do not hold legal degrees or training and provide this information based on personal experience and research, not as experts in interpreting the law. If you seek professional legal advice or services, we recommend you contact an attorney familiar with gambling laws.