How to Conduct a Raffle
in the State of Indiana

IMPORTANT - These documents are provided as an informational resource regarding the laws of Monroe County, Indiana. If you are accessing these documents from a place other than Monroe County, this information should be used only as the most general of references as the laws in your area may vary greatly from Monroe County.

As always, this reference is not meant as a substitute for advice given from a licensed attorney.

Indiana Raffles: Table of Contents

So You Want to Hold a Raffle?

There are some important questions you must be able to answer regarding your organization before you will know if it is eligible to conduct a raffle.

First, the organization must be non-profit [45 IAC 18-1-7 (a)(1)] and either have been in active, continuous existence in Indiana for at least 5 years or be affiliated with an Indiana parent organization which has been operating in Indiana at least 5 years [45 IAC 18-1-7 (a)(2)]. Also, the organization must be exempt from taxation under either an Indiana or Federal statute [45 IAC 18-1-7 (a)(3)].

Next, your group must be registered with the Indiana Department of Revenue as a Not-for-Profit organization [45 IAC 18-1-7 (a)(4)]. (If your group is registered with the Indiana Department of Revenue as a Not-for-Profit organization, the group will have been issued an Indiana Not-for-Profit Number.) Once you are registered with the Indiana Department of Revenue, your group must annually file an application with the State of Indiana [45 IAC 45-18-2-1]. Depending on the market value of the prizes you will offer, you will either have to register with the Indiana Department of Revenue or file an application for the raffle event. [45 IAC 18-2-4(b)(4)]. Finally, after conducting a raffle you may have to file reports with the State of Indiana, [45 IAC 18-4-1] along with State and Federal tax returns [45 IAC 18-5-1]. This may seem like a lot of red tape just to hold a raffle, but if you hold a raffle without satisfying all of the legal requirements, you have committed a Class B misdemeanor [45 IAC 18-6-2], and could face fines and other civil penalties [45 IAC 18-6-1].

Things to do before a raffle can be conducted

You must first determine how you can prove your organization has been in active, continuous existence in Indiana for at least five years, or has been an organization affiliated with an Indiana parent organization that has been operating in Indiana for at least five years [45 IAC 18-2-1]. If your organization does not prove through documentation that it can satisfy this requirement, it is not eligible to conduct a raffle in Indiana. If your organization satisfies this requirement, go on.

Next you must determine whether your group is registered with the Indiana Department of Revenue as a not-for-profit organization. If your group is recognized as not-for-profit, it will have been issued an Indiana Not-for-Profit Identification number. This will be an 8-digit number that begins with a "7" or "8." If your group is not registered as being not-for-profit, you must apply to the Indiana Department of Revenue to be recognized as a Not-for-Profit organization before you can be eligible to conduct a raffle. Approval will usually take sixty to ninety days. The application is labeled Form IT-35A, and a link is included on this web site to the form on the Indiana Department of Revenue site, along with line-by-line instructions here (see below).

Another important matter to be considered early in the process is whether your organization qualifies for federal tax exempt status. If it does qualify, the next question is should your organization apply to be recognized as federally tax exempt? It costs at least $150 in fees to be recognized as federally tax exempt, so your organization may not want to apply for federal tax exempt status unless it is necessary.

As long as your organization spends more in a calendar year than it generates through fund raising in that year (this does not include money provided in funding from the University), your organization will not owe any federal tax whether it is recognized as federally tax exempt or not, so there is no need to spend money on filing for federal tax exempt status. In addition, if your group has a Student Organization Account (SOA), the proceeds from charity gaming are not taxable and no filing is required as long as and to the extent that they are deposited in the organization's SOA account. However, if your organization generates more in fund raising than it spends in a calendar year, and does not deposit the excess in the organization's SOA account, it will have to file a federal tax return and pay taxes on the excess of fund raising receipts over expenditures unless it is recognized as federally tax exempt. Of course, one way to get around this problem is to make sure that your organization spends more than it generates through fund raising each calendar year.

If your organization has been recognized as being federally tax exempt, another consideration for federal purposes is the amount of money raised annually through fund raising, that is, the amount of money your organization generates annually including all receipts except money provided by the University.

If your organization generates more than $25,000 through fund raising and is recognized as federally tax exempt, it must file an annual information return, even if it spends more during the year than it generates.

Once you know your Indiana Not-for-Profit number, you are ready to complete the Indiana Charity Gaming Annual Qualification Application. First time applicants must include a copy of their organization's bylaws, constitution, or articles of incorporation [45 IAC 18-2-1 (b)(6)(d)]. This application must be refiled annually even if no raffles are planned in a given year, or else eligibility to hold raffles in the future may be lost [45 IAC 18-1-7 (a)(4)]. Once Indiana has approved your Charity Gaming Annual Qualification Application, you are eligible to conduct not only raffles, but also bingo and events featuring door prizes, pull tabs, punchboards, tip boards, and casino-type games [45 IAC 18-3-1 (b)].

The Indiana Charity Gaming Annual Qualification Application is labeled Form CG-1, and a link is included on this web site to the form on the Indiana Department of Revenue site, along with line-by-line instructions here (see below).

Now you must determine whether the total market value of the raffle prizes will exceed $1000. If the value of the prizes will not exceed $1000, then you do not need to obtain any other license before you conduct the raffle [45 IAC 18-2-4 (b)(4)], but you must register before conducting the raffle by sending the Indiana Department of Revenue a letter before the event that includes the name of your organization, the location and date of the charity game, the types of games that will be played, and the total market value of all prizes to be given away. If the value of the raffle prizes exceeds $1000, then you must file an Indiana Department of Revenue Raffle License Application for the event [45 IAC 18-2-4 (b)(5)]. The application should be submitted at least six weeks before the scheduled event.

The Indiana Department of Revenue Raffle License Application is labeled Form CG-5, and a link is included on this web site to the form on the Indiana Department of Revenue site, along with line-by-line instructions here (see below).

Things to do after conducting a raffle

All organizations which have been recognized as Not-for-Profit by the State of Indiana (ie, those which have been issued an Indiana Not-for-Profit Identification number) must file an IT-35AR return with the state of Indiana annually [45 IAC 18-4-1].

If a Raffle License Application (CG-5) was submitted, then a Single Event Financial Report (CG-9) must be filed within 10 days after the event has been conducted.

Charity Game Nights

Charity game nights, featuring events such as door prize drawings, pull tabs, punchboards, tip boards, and card, dice, and wheel games, are also popular. To conduct a charity game night, an organization must have an Indiana Not-for-Profit Identification number, must file an Indiana Charity Gaming Annual Qualification Application (CG-1), and must file a Charity Game Night License Application (CG-4) at least six weeks before the scheduled charity game night.

A Single Event Financial Report (CG-9) must be filed within 10 days after the charity game night has been conducted.

Instructions for Forms

All the forms mentioned in the document are available from the Indiana Department of Revenue's WWW site. We have supplied links to each of them to eliminate the need for you to hunt through their site. All forms are in Adobe Acrobat format (which seems to be the standard government format for forms). To read and print out these forms, you need the free Adobe Acrobat reader.

Forms you will need:
IT-35A
CG-1
CG-4
CG-5
CG-9

Application to File as a Not-for-Profit Organization (Form IT-35A)

Documents to attach

If your organization has been recognized as federally tax exempt, and has received a federal determination letter from the Internal Revenue Service, include this federal determination letter.

If your organization must file any federal tax or informational returns, include a copy of the last return filed.

If your organization is incorporated, include a copy of both its articles of incorporation and its bylaws.

If your organization is not incorporated, include a copy of its constitution and/or bylaws, or similar documents, as well as a copy of any amendments made or presently proposed.

The form IT-35A must be signed by a member of the organization authorized to do so.

Indiana Department of Revenue Raffle License Application (Form CG-5)

  1. Self explanatory.
  2. Self explanatory.
  3. Self explanatory.
  4. Self explanatory.
  5. Self explanatory.
  6. You must indicate whether the facility where the event will be conducted is owned by, rented by, or donated to your organization. If the facility is leased or rented, enter the name and address of the lessor and attach a copy of the lease, if the facility is donated, attach a statement from the donor indicating that the facility is being offered rent-free.
  7. Self explanatory.
  8. Be sure to provide all information reuested for each raffle operator (those that supervise, manage, or are responsible for the operation and conduct of the raffle).
  9. Self explanatory.
  10. Indicate whether any operators listed under number 9 above are also operators for charity gaming events of other organizations. If so, indicate the names of these operators, and the months in which these operators conduct charity gaming events for your organization.
  11. Be sure to provide all information requested for each person who will assist and work in the operation of the raffle, but who are not listed as operators under number 9 above.
  12. Self explanatory.
  13. a. If concessions will be offered during the licensed event, complete 13b through 13d.
    13b. Answer this question only if the concessions will not be provided by the the organization applying for this license, but will be provided by an auxillary unit or affiliate of the applicant.
    13c. Self explanatory.
    13d. Self explanatory.
  14. Self explanatory.
  15. Self explanatory.
  16. Check one of the boxes only if the raffle will be conducted along with either a licensed bingo event or charity game night.
  17. Self explanatory.
  18. Complete this section if you intend to purchase any of the items indicated.
  19. Self explanatory.
  20. Self explanatory.
  21. Self explanatory.
  22. Self explanatory.
  23. Self explanatory.
  24. Self explanatory.
  25. Indicate here the amount of the license fee. If this is your organization's first raffle license, the fee is $25.00. If your organization has previously conducted a raffle event, consult the table on the back page of the Indiana Charity Gaming License Single Event Financial Report (CG-9) for the appropriate license fee.
  26. Self explanatory.
  27. The application must be signed by both the presiding officer and secretary of your organization.

Indiana Department of Revenue Charity Game Night License Application (Form CG-4)

  1. Self explanatory.
  2. Self explanatory.
  3. Self explanatory.
  4. Self explanatory.
  5. Self explanatory.
  6. You must indicate whethe the facility where the event will be conducted is owned by, rented by, or donated to your organization. If the facility is leased or rented, enter the name and address of the lessor and attach a copy of the lease, if the facility is donated, attach a statement from the donor indicating that the facility is being offered rent-free.
  7. Self explanatory.
  8. Be sure to provide all information requested for each charity game night operator (those that supervise, manage, or are responsible for the operation and conduct of the game night event).
  9. Self explanatory.
  10. Indicate whether any operators listed under number 9 above are also operators for charity gaming events of other organizations. If so, indicate the names of these operators, and the months in which these operators conduct charity gaming events for your organization.
  11. Be sure to provide all information requested for each person who will assist and work in the operation of the licensed event, but who are not listed as operators under number 9 above.
  12. Self explanatory.
  13. a. If concessions will be offered during the licensed event, complete 13b through 13d.
    13b. Answer this question only if the concessions will not be provided by the the organization applying for this license, but will be provided by an auxillary unit or affiliate of the applicant.
    13c. Self explanatory.
    13d. Self explanatory.
  14. Self explanatory.
  15. Self explanatory.
  16. Self explanatory.
  17. Self explanatory.
  18. Self explanatory.
  19. Self explanatory.
  20. Self explanatory.
  21. Self explanatory.
  22. Self explanatory.
  23. Self explanatory.
  24. Indicate here the amount of the license fee. If this is your organization's first charity game night license, the fee is $25.00. If your organization has previously conducted a charity game night event, consult the table on the back page of the Indiana Charity Gaming License Single Event Financial Report (CG-9) for the appropriate license fee.
  25. Self explanatory.
  26. The application must be signed by both the presiding officer and secretary of your organization.

Indiana Charity Gaming License Single Event Financial Report (Form CG-9)

Signature and notary statement:

Be sure to have the CG-9 notarized, and mailed to the Indiana Department of Revenue within 10 days of the event. Indiana Univiersity Student Legal Services offers free notary service to IU Bloomington Students.

Indiana Charity Gaming Annual Qualification Application (Form CG-1)

See instructions included with form.