Charitable Gaming

While no Arizona state agency regulates charitable raffles, there are rules that determine whether a raffle is legal. Take a quiz to help you determine whether your organization can conduct a raffle! You can also view this Raffles in Arizona Flyer for more information. The Departments recommends that you obtain independent legal advice to ensure compliance with the law.

Civic Leagues: Organizations not organized for profit but operated exclusively for the promotion of social welfare or local organizations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, the net earnings of which are devoted exclusively to charitable, educational or recreational purposes.

Religious or apostolic organizations or corporations: If such organizations or corporations have a common treasury or community treasury, even if such corporations or organizations engage in business for the common benefit of the members, but only if the members thereof include, at the time of filing their returns, in their Arizona gross income their pro rata shares, whether distributed or not, of the net income of the organizations or corporations for such year. Any amount so included in the Arizona gross income of a member shall be treated as a dividend received.

Clubs: organized and operated exclusively for pleasure, recreation and other non-profitable purposes, no part of the net earnings of which insures to the benefit of any private shareholder.

Fraternal beneficiary societies, order or organizations:

• Operating under the lodge system or for the exclusive benefit of the members of a fraternity itself operating under the lodge system.
• Providing for the payment of life, sick, accident or other benefits to the members of such society, order or organization or their dependents.

Labor, agricultural or horticultural organizations

Corporations: Organized and operated exclusively for religious, charitable, scientific, literary or educational purposes or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, and no substantial part of the activities of which is carrying on propaganda or otherwise attempting to influence legislation.

Teachers’ or public employees’ retirement fund organizations:

• No part of their net earnings inures to the benefit of any private shareholder or individual, other than through payment of retirement benefits.
• The income consists solely of amounts received from public taxation, amounts received from assessments upon the salaries of members and income in respect of investments. For the purposes of this paragraph, “public employees” means employees of the state and its political subdivisions.

Business leagues, chambers of commerce, real estate boards or boards of trade: not organized for profit, no part of the net earnings of which inures to the benefit of any private shareholder or individual.