North Carolina statutes allow nonprofit organizations, recognized officially as tax-exempt, to conduct up to two raffles per year, subject to certain conditions. (G.S. 14-309.15) The applicable statutes do not authorize organizations or associations to conduct raffles without tax-exempt recognition specific to their group. The term “Raffle” means “a game in which the prize is won by random drawing of the name or number of one or more persons purchasing chances.” (G.S. 14-309.15(b)).
The University, as a recognized tax-exempt organization, allows up to two raffles per year. Campus groups or associations may not conduct raffles under the "umbrella" of the University's tax-exempt status unless the organization obtains express written approval from the Vice Chancellor for Advancement. Any campus organization wishing to use a permissible University raffle must apply in writing to the Vice Chancellor for Advancement. The letter of application should state why a particular request justifies using one of two raffles allowed by the University each year. North Carolina statutes strictly control raffles and violation of the statute is a criminal misdemeanor offense. Only in exceptional circumstances will a raffle be allowed under the University's "umbrella."
The total fair market value of all prizes offered, either in cash or in merchandise, may not exceed $125,000 in any calendar year. Additionally, none of the net proceeds of a raffle may be used to pay any person to conduct the raffle, or to rent a building where tickets are received or sold or where the drawing is conducted.