Raffle and Bazaar Permits
Raffles are the most common form of legalized charitable fundraising. Chapter 271, Section 7A sets no limits on the number of raffles allowed to be conducted under the permit. There are no prize limitations on raffles.
LARGE RAFFLE-There are regulations (940 CMR 12.00) that govern all large raffles conducted in the Commonwealth. A large raffle is one in which the ticket price is more than $10.00 or the prize is greater than $10,000.00.
Who can run a raffle or bazaar?
Only a veterans organization chartered by Congress, church or religious organization, fraternal or fraternal benefit society, educational or charitable, club or organization organized and operated exclusively for pleasure, recreation and other nonprofit purposes, no part of the net earnings inures to the benefit of any member or shareholder. This means:
- a for-profit entity cannot hold a raffle for itself or for a nonprofit; and
- an individual cannot hold a raffle.
The organization must be organized and actively functioning as a nonprofit in Massachusetts for at least two years.
This means the organization cannot:
- organize one week and have a raffle the next week; and
- be incorporated or otherwise organized in another state.
Eligibility Requirements:(one is required with application)
Organization is a 501(c) (3) issued by IRS
Has an AG number
Files form PCs & 990s with Division of Public Charities
Has a valid certificate of registration issued by Division of Public Charities
After Permit Expires:
Within 30 days of the permit’s expiration, the organization must file 2 copies of a financial report with the town clerk certified
by the 3 officers and an accountant, with:
- the number of raffles/bazaars held
- the amount of money received
- the expenses
- winners of prizes worth over $25.00
- the net proceeds
- use of the funds
Additional information can be found at Division of Public Charities: www.mass.gov