Nonprofits may apply for a license through the Arizona Department of Revenue. In Arizona, bingo is considered a gambling activity but may be conducted by licensed organizations.

Allowing individuals living outside of Arizona to purchase tickets.

Selling tickets online through a third party.

Giving out a select number of free tickets.

Requiring a minimum purchase to participate (drinks, food, etc.).

These are some common mistakes nonprofits make when conducting a raffle: In practice, it can often be hard to distinguish between activities that are, and are not, allowed. Rule 3: No person except a local member of the sponsoring organization may participate in the management, sales, or operation of the raffle. Rule 2: The sponsor of the raffle must be a nonprofit organization and no individual can benefit personally. Rule 1: The organization must have operated in Arizona for at least 5 years. These include nonprofit corporations, clubs, historical societies, religious institutions, and others. Raffles are a form of gambling in Arizona but are permitted for most 501(c) organizations. RafflesĪ common fundraising activity for nonprofits is raffling. In Arizona, nonprofits may conduct four types of gambling: raffles, bingo, Arizona State Lottery pull-tabs, and horse racing events. 4 Types of Gambling Allowed for Arizona Nonprofits However, Arizona carves out a few exceptions for charitable gambling. If your nonprofit conducts gaming that meets the definition of gambling, it must comply with Arizona charitable gambling law. Notice the phrase “something of value.” This includes more than just money.Īnything of value used as a bet for the opportunity to win something in return constitutes gambling in Arizona.

Gambling is defined as an act of risking or giving something of value for the opportunity to obtain a benefit. In many states, however, gambling is strictly regulated, so nonprofits must be conscious of the rules surrounding these events. Churches and Religious Organizations-Tax Resources.Tax-Exempt Organization Reference Chart.Nonprofit Mergers, Acquisitions, and Affiliations.

Are pull tabs donations or gambling