A non-profit lottery for a non-profit religious organization

This is a discussion on A non-profit lottery for a non-profit religious organization within the Fundraising Issues forum, part of the Starting a Nonprofit category; I assist as a volunteer for a non-profit mainstream Christian organization. We're considering running an online survey that offers a ...

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Old Dec 28th, 2008, 10:24 AM   #1
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Default A non-profit lottery for a non-profit religious organization

I assist as a volunteer for a non-profit mainstream Christian organization.

We're considering running an online survey that offers a chance in a prize draw (only one prize) for everyone who completes the survey. No other funds are ever requested and anyone including non-members may enter. The prize is under $USD1000 . No profit results from this survey (we don't get paid by anyone for the results etc.) The "payment" made by each entrant is only in the form of their "service" in completing the survey.

We have a team who will soon visit Virginia state and I've been asked to assist them in running the online site. Virginia law appears to exempt organizations not earning in excess of $25,000 is that right? Do we still require a license for any other reason? Does that fact that it takes place online affect this?

We're considering doing so in other parts of the USA and Canada where our parent organization has long resided. Would this be legal in all states? Would some states require a license?

Note that at the start of the survey we identify where the person resides and specifically exclude those not in participating regions.

Thanks for your help.
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Old Dec 29th, 2008, 10:37 AM   #2
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Default Re: A non-profit lottery for a non-profit religious organization

Some states do require a license and it varies so contact the state gaming commission in that state if you plan activities in that state.
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