Is a club allowed to hold events with raffles and what legal requirements apply in this case?
January 26, 2024 | 55,00 EUR | answered by Roberta Lahn
Dear lawyer specializing in association law,
My name is Peter Dornbusch and I am a board member of a non-profit organization. We are planning to organize events with raffles in the future in order to motivate our members and attract new ones. However, I am unsure whether our organization is allowed to conduct raffles and what legal requirements need to be taken into account.
Our motivation for holding events with raffles is to strengthen the community within the organization and also generate funds that can be used for our charitable projects. We want to ensure that we comply with all legal regulations and do not encounter any issues with authorities or other organizations.
My main concern is that we may be in violation of laws if we conduct raffles without the proper permits or requirements. Therefore, I would like to clarify in advance what legal requirements apply to raffles in associations and what steps we need to take as an organization to comply with them.
Can you please provide me with a comprehensive explanation of whether an association is allowed to hold events with raffles and what legal requirements need to be considered? Are there specific permits that we need to obtain, or special regulations that we should follow? I ask for your assistance in clarifying these questions so that we can operate legally as an organization.
Thank you in advance for your help.
Sincerely,
Peter Dornbusch
Dear Mr. Dornbusch,
Thank you for your inquiry regarding the organization of raffles in your non-profit organization. It is understandable that you are concerned about the legal framework and want to ensure that your organization does not violate any laws. In the following, I will explain in detail whether a organization is allowed to organize events with raffles and what legal requirements need to be considered.
In general, organizations are allowed to hold raffles as long as they are in line with the organization's purpose and are not primarily aimed at profit. Since your organization is non-profit and the raffles serve to strengthen the community and generate financial resources for charitable projects, there is nothing fundamentally preventing you from carrying out raffles.
However, there are some legal requirements that your organization must adhere to in order to conduct raffles in a legally compliant manner. First and foremost, you should ensure that the raffles are transparent and fair. This means that the terms and conditions of participation must be clear and understandable, and that the winners are selected in a comprehensible manner. Additionally, you should ensure that minors are not allowed to participate in the raffles, unless they are specifically designed for children and teenagers.
Furthermore, it is advisable to inquire about any necessary permits from authorities that may be required for conducting raffles. Depending on the nature and scope of the raffle, you may need permission from the relevant authority. Therefore, make sure to inform yourself early on whether and which permits you need to obtain to be on the safe side.
Additionally, you should ensure that the prizes are appropriate and correspond to the stake. Excessive prizes could be classified as gambling and be subject to stricter legal regulations. Therefore, ensure that the prizes do not exceed the value of the participation fee and that they are not paid out in cash.
Overall, it is important that you thoroughly inform yourself about the legal requirements before conducting raffles in your organization and seek legal advice if necessary to avoid any legal issues. If you consider these aspects and plan the raffles carefully, there should be nothing standing in the way of a successful and legally secure implementation.
I hope that this information has been helpful to you and I am happy to answer any further questions you may have. Thank you for your interest and dedication to your organization.
Best regards,
Roberta Lahn
