Planning A Charity Raffle, Eh?

 February 8, 2022      RAVEN5

You are here because you are interested in planning a charity raffle. Perfect! You have come to the right place. First and foremost, please place your planner and all of your brilliant ideas in the drawer; I promise we will get to that part soon. You are probably wondering why you clicked on this blog in the first place. If you read my previous blog, you’ll understand why. But, just in case you’re wondering, running a raffle in Canada (or anywhere in North America) isn’t exactly legal and requires your organization to obtain a license. Check out our blog on the legal implications of running a raffle in Canada to learn more. 

Here at Raven5, we want to ensure that your event is run successfully with no glitches, or in this case, no legal actions. To give you an idea of the process, I’ve put together a step-by-step breakdown of what you’ll need to apply for a license in Ontario.

Step 1: Do You Fall Under These Organizations?

The first step is to determine if your organization can apply for a raffle license. Any religious, charitable, or non-profit organization that has been active in their community for a minimum of one year may apply for a raffle license, according to Order-In-Council 1413/08. They define a “charitable organization” as any corporation, agency, or partnership in Ontario affiliated with a charity, religious, or non-profit organization and donates 100% of its profits to the charitable cause. In addition, you must provide a physical address in Ontario and demonstrate that your organization has benefited your community. 

Step 2: Determine the cash value of your raffle prize

The next and most crucial step is to know the dollar value of the prize or prizes for your raffle. Why, you may ask? It’s definitely not to show off how valuable or fancy your prize is. It’s to see if you’re applying for a provincial or municipal license.

What’s the difference between the two? You must apply for a municipal license if the cash value of your prize does not exceed $50,000. If the cash value of the prize exceeds $50,000, you must apply for a provincial license. These licenses are only good for one raffle.

Step 3: Do You Have The Right Documentation?

You are almost there! This next step will prepare you to pull up the application online to fill out smoothly. Listed below are the following documents you will need to provide in your application package:

  • A sample of your proposed raffle ticket
  • Must provide documents that show your prizes will value no less than 20% of the gross proceeds from the sale of all the tickets
  • Financial Guarantee document 
    • Financial security
    • Letter of credit (If required)
  •  If the raffle prize is a house, an Offer to Purchase/Agreement of Purchase and Sale documents.
  • If a car is part of the raffle, you will need to provide a letter from the dealer. This letter must indicate the year type, model, and options of the car to be awarded and the total retail value of the vehicle, including all taxes, freight, and duty. 
  • Business plan and raffle budget
    • Include information outlining the experience for the personnel running the event
    • Draw date, the sequence of draws, and the detail of the prize

Additional documentation for new applicants: 

  • Incorporation papers
  • Financial Statement for the previous fiscal year
  • Detailed documents regarding company activities
  • Written proposition for the use of the ticket proceeds

Once all the documents are located, and up to date, you are ready to fill out the application with AGCO. I should point out that you must submit this application 45 days before the date you plan to print your tickets. Remember that you’ll have to provide a sample of the raffle ticket you’ll be selling. We’ll cover that in the next section.

Step 4: Design the Right Raffle Tickets

The final and last step of your application process is to present the AGCO with a mockup of your raffle ticket. Yes, a simple mockup of how you’d like your raffle ticket to look at the time of your event. The following information is required on the ticket:

The following information must be found on the donor’s ticket:

  • The license number and the name of the licensed business
  • Complete details on the draw’s date, location, and time
  • Prize description, including monetary value
  • The total cost of the ticket
  • The ticket number next to the total number of printed tickets

On the part kept by the organization (for drawing or recording):

  • The ticket number
  • The license number and the name of the licensed business
  • There is enough room for the purchaser’s full name, address, and phone number

I know it seems like a lot, but this is mandatory to run your charity raffle smoothly and dodge any legal implications. To create your raffle, visit Raffle Ticket Creator and Eventgroove.ca.

Congratulations! You’ve made it to the end of what appears to be the longest process to have just a raffle at your event in Ontario. But now, you can rest assured that your charity raffle is being conducted correctly. To learn more about running a raffle in your province, visit your local gaming municipality to learn more. Or Contact us. We provide all the services to help you create a successful legal charity raffle. We can help if you’re looking to run a charity raffle in Ontario or any other province in Canada. Visit us at Raffle5.com for more details. And, if you have any further questions, please do not hesitate to contact us. 

Want learn more about Charity Raffles! Check out Thank Us Later – Top Three Online Charity Raffle Idea to Raise Funds for Your Charity organization and Charity Raffle or Charity Sweepstake?

Naa Mensah, Oakville, ON, February 2022

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