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Post by sleepy on May 5, 2024 10:09:56 GMT -8
You gotta help me with the reading comprehension on that, Tex. I've got a different reading of it -- like, if they sold $100 worth of tickets at a given hoops game, then, e.g, NIL could keep $90 while $10 would go to, I guess, the expense of buying a roll of those tickets, and the gas or shipping to procure same? Maybe one of the legal minds here (I was a lowly lit paralegal, so what do I know?) can chime in. I gotta be missing something. The quote was from from FAQs From the CA State Office of the Attorney General. LINKIt goes on to say, "The 90/10 rule applies to 50/50 raffles, in which 50 percent of ticket-sale revenue is awarded as the prize and 50 percent of the revenue is retained by the organization conducting the raffle. 50/50 raffles are illegal because 90 percent of the gross ticket-sale revenue is not used for charitable purposes."
The fact that some people are doing it and getting away with it doesn't mean it's legal. The State would probably not bother with a small youth league. But a NIL cooperative paying out hundreds of thousands would likely be caught. Interestingly, the California Lottery uses 50% of it's proceeds for prizes. Always remember the Golden Rule, he who has the gold makes the rules.
Ah, OK, there it is: The 50/50 v 90/10. I was reading it as the 90/10 would be split from the organizer's side of their 50% take. So on our $100 hypothetical, I was reading it as the organizer would still get 50 bucks, 45 of which would go to benefit the organizer and $5 to the administrator of the 50/50 drawing for whatever expenses. But now I got what you're saying. I really think they need to revisit this, at least in terms of 50/50 drawings. I think everybody who enters such a drawing understands that 50% of their money is going to somebody besides the organization. It's not like a state secret, skim or embezzlement or anything. |
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Post by AzTex on May 5, 2024 10:29:24 GMT -8
The quote was from from FAQs From the CA State Office of the Attorney General. LINKIt goes on to say, "The 90/10 rule applies to 50/50 raffles, in which 50 percent of ticket-sale revenue is awarded as the prize and 50 percent of the revenue is retained by the organization conducting the raffle. 50/50 raffles are illegal because 90 percent of the gross ticket-sale revenue is not used for charitable purposes."
The fact that some people are doing it and getting away with it doesn't mean it's legal. The State would probably not bother with a small youth league. But a NIL cooperative paying out hundreds of thousands would likely be caught. Interestingly, the California Lottery uses 50% of it's proceeds for prizes. Always remember the Golden Rule, he who has the gold makes the rules.
Ah, OK, there it is: The 50/50 v 90/10. I was reading it as the 90/10 would be split from the organizer's side of their 50% take. So on our $100 hypothetical, I was reading it as the organizer would still get 50 bucks, 45 of which would go to benefit the organizer and $5 to the administrator of the 50/50 drawing for whatever expenses. But now I got what you're saying.
I really think they need to revisit this, at least in terms of 50/50 drawings. I think everybody who enters such a drawing understands that 50% of their money is going to somebody besides the organization. It's not like a state secret, skim or embezzlement or anything. It's not what I'm saying it's what the California Attorney General's office is saying based on the California State law. The law is not required to be logical. It is what it is because of what the legislature said it is. I agree it's different than a charitable organization didn't disclose that 50% was going back to the "donors." But, that's not what the law says, unfortunately. |
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Post by aztecfred on May 5, 2024 10:42:28 GMT -8
You gotta help me with the reading comprehension on that, Tex. I've got a different reading of it -- like, if they sold $100 worth of tickets at a given hoops game, then, e.g, NIL could keep $90 while $10 would go to, I guess, the expense of buying a roll of those tickets, and the gas or shipping to procure same? Maybe one of the legal minds here (I was a lowly lit paralegal, so what do I know?) can chime in. I gotta be missing something. The quote was from from FAQs From the CA State Office of the Attorney General. LINKIt goes on to say, "The 90/10 rule applies to 50/50 raffles, in which 50 percent of ticket-sale revenue is awarded as the prize and 50 percent of the revenue is retained by the organization conducting the raffle. 50/50 raffles are illegal because 90 percent of the gross ticket-sale revenue is not used for charitable purposes."
The fact that some people are doing it and getting away with it doesn't mean it's legal. The State would probably not bother with a small youth league. But a NIL cooperative paying out hundreds of thousands would likely be caught. Interestingly, the California Lottery uses 50% of it's proceeds for prizes. Always remember the Golden Rule, he who has the gold makes the rules.
"lottery uses 50%"?? Does anyone really know where that money (other 50%) goes?? Seems like schools and districts always claim to be unfunded? |
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Post by aztecfred on May 5, 2024 10:44:23 GMT -8
The quote was from from FAQs From the CA State Office of the Attorney General. LINKIt goes on to say, "The 90/10 rule applies to 50/50 raffles, in which 50 percent of ticket-sale revenue is awarded as the prize and 50 percent of the revenue is retained by the organization conducting the raffle. 50/50 raffles are illegal because 90 percent of the gross ticket-sale revenue is not used for charitable purposes."
The fact that some people are doing it and getting away with it doesn't mean it's legal. The State would probably not bother with a small youth league. But a NIL cooperative paying out hundreds of thousands would likely be caught. Interestingly, the California Lottery uses 50% of it's proceeds for prizes. Always remember the Golden Rule, he who has the gold makes the rules.
Ah, OK, there it is: The 50/50 v 90/10. I was reading it as the 90/10 would be split from the organizer's side of their 50% take. So on our $100 hypothetical, I was reading it as the organizer would still get 50 bucks, 45 of which would go to benefit the organizer and $5 to the administrator of the 50/50 drawing for whatever expenses. But now I got what you're saying. I really think they need to revisit this, at least in terms of 50/50 drawings. I think everybody who enters such a drawing understands that 50% of their money is going to somebody besides the organization. It's not like a state secret, skim or embezzlement or anything. Whoa!!! Your expecting politicians and common sense to prevail?🤔 |
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Post by mojo56 on May 8, 2024 15:49:17 GMT -8
The Gulls & the Padres run these 50/50 raffles every game. The Padres 'pot' was over $30,000 at a game I was at a couple of weeks ago. I would think that amount would get some government agencies attention if something illegal was going on. Not to mention, I'm pretty sure the lawyers for both organizations must have signed off on approving these raffles. I think the Padres raffle benefits youth baseball. Not sure about the Gulls.
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Post by uncledougy on May 8, 2024 16:03:35 GMT -8
It’s perfect because people are buying tix in an effort to win, not to donate!! Most people spend money to get a personal benefit.
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Post by AzTex on May 8, 2024 16:46:06 GMT -8
The Gulls & the Padres run these 50/50 raffles every game. The Padres 'pot' was over $30,000 at a game I was at a couple of weeks ago. I would think that amount would get some government agencies attention if something illegal was going on. Not to mention, I'm pretty sure the lawyers for both organizations must have signed off on approving these raffles. I think the Padres raffle benefits youth baseball. Not sure about the Gulls. Once again, after a little Googling, I found the following on the California Attorney General's web page outlining an exception to the 50/50 raffle law I referenced previously. This only applies to various major league sports organizations. This explains why the Padres and Gulls are allowed 50/50 raffles.
Remember, in my earlier post I referenced the Golden Rule. This is just another example of that.
Overview of the Major League Sports Raffle Program
"In 2015, the Legislature enacted Penal Code section 320.6, which authorizes 50/50 raffles conducted by eligible organizations at major league sports home games."
Applicable section of the California Penal Code: LINK
Portion of the California Penal Code section 320.6.
(a) Notwithstanding Section 320.5, this section applies to an eligible organization.
(b) A raffle that is conducted by an eligible organization for the purpose of directly supporting beneficial or charitable purposes or financially supporting another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, that performs beneficial or charitable purposes may be conducted in accordance with this section.
(c) For purposes of this section, “eligible organization” means a private, nonprofit organization established by, or affiliated with, a team from the Major League Baseball, National Hockey League, National Basketball Association, National Football League, Women’s National Basketball Association, or Major League Soccer, or a private, nonprofit organization established by the Professional Golfers’ Association of America, Ladies Professional Golf Association, or National Association for Stock Car Auto Racing that has been qualified to conduct business in California for at least one year before conducting a raffle, is qualified for an exemption under Section 501(c)(3) of the Internal Revenue Code, and is exempt from taxation pursuant to Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701l, 23701t, or 23701w of the Revenue and Taxation Code.
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