Georgia Raffle Laws: Complete Legal Guide for Nonprofits
Georgia allows qualified nonprofits to conduct raffles with proper licensing from local sheriffs. This comprehensive guide covers everything nonprofits need to know about running legal raffles in the Peach State, including licensing, reporting, and compliance requirements.
Georgia Raffle Laws: Quick Facts
| Who Can Hold Raffles: | Qualified 501(c)(3) nonprofits |
| License Required: | Yes, from county sheriff |
| License Cost: | $50-$150 (varies by county) |
| Minimum Existence: | 1 year in Georgia |
| Prize Limits: | None specified |
| Cash Prizes: | Allowed |
| Online Sales: | Not addressed (likely prohibited) |
| Annual Report: | Required to sheriff |
Who Can Conduct Raffles in Georgia?
Georgia law restricts raffles to specific types of nonprofit organizations:
Eligible Organizations Must:
- Be qualified as tax-exempt under Section 501(c)(3) of Internal Revenue Code
- Have operated continuously in Georgia for at least 1 year
- Be organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes
- No part of net earnings can benefit private shareholders or individuals
Additional Eligible Organizations
Georgia also allows raffles by:
- Volunteer fire departments
- Nonprofit hospitals
- Chambers of commerce
- Jaycees organizations
- Exchange, Kiwanis, Lions, Optimist, and Rotary clubs
Licensing Requirements
Sheriff's License Process
Georgia's unique system requires licensing through county sheriffs:
- Application to: Sheriff of county where drawing will occur
- License fee: Varies by county ($50-$150 typical)
- Valid period: One calendar year
- Multiple counties: Need separate license for each
- Processing time: Usually 7-14 days
Application Requirements
- Proof of 501(c)(3) status
- Evidence of 1-year operation in Georgia
- List of officers and directors
- Description of raffle plans
- Previous year's financial statements
Raffle Operations and Restrictions
Operating Requirements:
- All operations must be conducted by members
- No compensation for raffle work allowed
- Cannot hire professional fundraisers
- Must maintain detailed records
- Drawing must be public
- Winner need not be present
Prize Considerations
Georgia law does not specify prize limits, but organizations should:
- Ensure prizes are reasonable for organization size
- Document prize sources and values
- Consider tax implications for winners
- Obtain proper releases for vehicle/property prizes
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Conducting Your Raffle: Step-by-Step
Georgia Raffle Compliance Checklist
- Verify 501(c)(3) status is current
- Confirm 1+ year operation in Georgia
- Apply for license with county sheriff
- Pay required license fee
- Design tickets with mandatory information
- Set up volunteer management system
- Establish financial tracking procedures
- Plan public drawing event
- Prepare record-keeping system
- Schedule annual report preparation
Required Ticket Information
Each raffle ticket should display:
- Name of nonprofit organization
- License number from sheriff
- Date, time, and location of drawing
- Prizes to be awarded
- Price of ticket
- Sequential number
- Statement about winner presence requirements
Sales Guidelines
- Only organization members can sell tickets
- Cannot use paid solicitors
- Sales limited to Georgia residents
- Must provide receipts upon request
- Cannot extend credit
Financial Management & Reporting
Use of Proceeds
Proceeds Must Be Used For:
- Organization's stated charitable purposes
- Cannot benefit private individuals
- Reasonable expenses may be deducted
- Must align with 501(c)(3) mission
- Subject to sheriff's review
Record Keeping Requirements
Maintain these records for at least 3 years:
- Complete ticket sales records
- List of all ticket purchasers
- Gross receipts documentation
- Itemized expense records
- Prize winner information
- Distribution of net proceeds
- Bank statements and deposits
Annual Reporting
- Report to: Licensing sheriff's office
- Due date: Usually within 90 days of year-end
- Contents: Financial summary of all raffles
- Penalties: May affect future licensing
Special Considerations
Multi-County Operations
If conducting raffles in multiple Georgia counties:
- Must obtain license from each county sheriff
- File separate reports for each county
- Track sales and expenses by county
- Ensure compliance with each county's specific rules
Joint Raffles
Multiple organizations can partner if:
- Each organization is separately qualified
- Written agreement specifies responsibilities
- Proceeds division clearly documented
- Each maintains required records
Common Violations and Penalties
Common Violations
- Operating without sheriff's license
- Using paid workers or solicitors
- Failing to file annual reports
- Misuse of raffle proceeds
- Poor financial records
- Conducting drawings outside licensed county
Enforcement Actions
- License revocation
- Criminal prosecution
- Civil penalties
- Prohibition from future raffles
- Required return of proceeds
Best Practices for Georgia Raffles
- Build Sheriff Relationship: Maintain good communication with licensing office
- Document Everything: Georgia requires detailed records
- Use Volunteers Wisely: Train thoroughly on legal requirements
- Track by County: Keep separate records if multi-county
- File Reports Early: Don't wait until deadline
- Be Transparent: Public trust is crucial
- Plan Conservatively: Better to under-promise and over-deliver
Official Resources
Make Your Georgia Raffle a Success
Georgia's raffle laws provide a straightforward framework centered on local control through county sheriffs. This system allows for community oversight while supporting charitable fundraising. The lack of specific prize limits gives organizations flexibility, but requires responsible self-regulation.
Success in Georgia comes from building strong relationships with your local sheriff's office, maintaining impeccable records, and focusing on your charitable mission. With proper licensing and compliance, your Georgia raffle can effectively support your nonprofit's important work.
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