Losing our rights to a club raffle
#1
Member
Thread Starter
My Feedback: (3)
Join Date: Nov 2004
Location: South Lyon,
MI
Posts: 87
Likes: 0
Received 0 Likes
on
0 Posts
Losing our rights to a club raffle
Here in Michigan, our RC Club has relied on our yearly Christmas Raffle to give us that extra $900 - $1500 income to help defray our expenses and keep us in the black. As a not for profit organization, we may be loosing the ability to have the license for this event (due to Legislation changes). We have been looking for alternative means to raise funds, other than increasing membership dues. Any suggestions?
#2
My Feedback: (2)
RE: Losing our rights to a club raffle
Is this a state law or a federal law?
To keep our dues under control we do events throughout the year. It generally brings in about 6 to $8k for field improvements. But you need the volunteers to make that work. The 10% rule is usually the norm in our club.
Edwin
To keep our dues under control we do events throughout the year. It generally brings in about 6 to $8k for field improvements. But you need the volunteers to make that work. The 10% rule is usually the norm in our club.
Edwin
#3
Member
Thread Starter
My Feedback: (3)
Join Date: Nov 2004
Location: South Lyon,
MI
Posts: 87
Likes: 0
Received 0 Likes
on
0 Posts
RE: Losing our rights to a club raffle
Well, I have to admit, that I do not know all of the particulars, but at our club meeting last night there was considerable discussion about new venues of revenue. I believe the laws are Michigan only. But aside from this, I was hoping to glean some other ideas for fund raising. What is the 10% rule?
#5
Member
Thread Starter
My Feedback: (3)
Join Date: Nov 2004
Location: South Lyon,
MI
Posts: 87
Likes: 0
Received 0 Likes
on
0 Posts
RE: Losing our rights to a club raffle
That's what I thought the 10% rule was! Instead of a select few doing all the work and in order for everyone in the club (the other 90%) to bear the financial needs, I think we should all kick in an extra $20 and that way everyone invests in the clubs needs.
#6
My Feedback: (2)
RE: Losing our rights to a club raffle
We've started giving points to those that volunteer and at the end of the year Christmas party/meeting we hold a drawing that only the volunteers participate in, a point gets your name in the hat that many times. It helps a bit. We're gonna try some other things this year to spead some more thanks around.
Edwin
Edwin
#7
Join Date: Feb 2002
Location: Houston, TX
Posts: 1,329
Likes: 0
Received 0 Likes
on
0 Posts
RE: Losing our rights to a club raffle
I have been a part of clubs that have had a similar points system. Others that have have required annual participation. In any case it is great to reward the contributors, they deserve it. My experience has been that it does little to impact the 10% rule. And, none of this helps Daniel with income. The best idea out there is to hold events that draw from outside the membership.
Good luck,
Bedford
Good luck,
Bedford
#8
Senior Member
Join Date: Feb 2003
Location: Lake County,
CA
Posts: 1,555
Likes: 0
Received 0 Likes
on
0 Posts
RE: Losing our rights to a club raffle
The issue of raffles comes up periodically.
Not for profits are allowed to raise money.
Additionally, are they going to enforce this
for the amount of money we are talking about?
What is the purpose of the law?
Has anyone actually studied it?
I think a lot more research needs to be done.
You may be panicking for no reason.
Good Luck,
KW_Counter
Not for profits are allowed to raise money.
Additionally, are they going to enforce this
for the amount of money we are talking about?
What is the purpose of the law?
Has anyone actually studied it?
I think a lot more research needs to be done.
You may be panicking for no reason.
Good Luck,
KW_Counter
#9
Senior Member
RE: Losing our rights to a club raffle
Hold your raffle as usual only don't call it a raffle.
Call it "Please help the club fund" and just have everyone
who wants to participate make a tax deductable donation.
This way the individual can deduct the donation made.
Now what to do with the club money that you don't want to report.
The club now buys some capitol equipment, (prizes) and then
deems them un-necessary and promply scraps them. Of course
to be fair the names of supportive members are given 1st choice
to purchase these items for .25
OR
Have any member run hie own personnal raffle. (I don't think there is
a law against that) After it's done ,out of the goodness of his heart he
donates the funds as a tax deductable donation.
OR
Just don't report it or keep 2 sets of books.
Good luck,
Roby
Call it "Please help the club fund" and just have everyone
who wants to participate make a tax deductable donation.
This way the individual can deduct the donation made.
Now what to do with the club money that you don't want to report.
The club now buys some capitol equipment, (prizes) and then
deems them un-necessary and promply scraps them. Of course
to be fair the names of supportive members are given 1st choice
to purchase these items for .25
OR
Have any member run hie own personnal raffle. (I don't think there is
a law against that) After it's done ,out of the goodness of his heart he
donates the funds as a tax deductable donation.
OR
Just don't report it or keep 2 sets of books.
Good luck,
Roby
#10
Senior Member
My Feedback: (3)
Join Date: May 2003
Location: Reno, NV
Posts: 260
Likes: 0
Received 0 Likes
on
0 Posts
RE: Losing our rights to a club raffle
For years here in Reno, our club raffled planes at the Air Races. Our tickets were marked as donation only to get around the states laws about raffles. The only argument we had was with the state tax commision about paying a sales tax, and as a registered non profit group we always won that argument. We do hold meeting raffles using cheap tickets and have never been confronted about it. I think I would go ahead and hold your raffle and see what happens.
#11
Senior Member
Join Date: Apr 2005
Location: , MI
Posts: 130
Likes: 0
Received 0 Likes
on
0 Posts
RE: Losing our rights to a club raffle
As a member of another Michigan club, there does seem to be something against these types of raffles for us on the state level (although I didn't think it was something new, we ran into this a couple years ago, I actually thought they were supposedly supposed to loosen up some of those laws). Michigan I guess requires a license for these things (even for non-profits), and we had some members look into this, and basically we found it impossible for us to get the license. (I don't remember the exact details for why we couldn't because I wasn't one of those that was looking into it, but I know there were some issues with the fact that we own our field and there were some things in the by-laws that the state didn't like).
As for whether they'd care for the amounts involved? They will if it comes to their attention. And all it takes for that is a disgruntled former club member or a disgruntled neighbor for that to happen.
I don't think the license actually costs that much (although you need one for every specific individual raffle you do), so it's probably worth looking into, maybe you'll have better luck than we did.
As for whether they'd care for the amounts involved? They will if it comes to their attention. And all it takes for that is a disgruntled former club member or a disgruntled neighbor for that to happen.
I don't think the license actually costs that much (although you need one for every specific individual raffle you do), so it's probably worth looking into, maybe you'll have better luck than we did.