My profit business wants to sponsor a gala to raise kids scholarship money in New York. Do we need a permit?
August 13th, 2010
Our vocational school is for-profit… but we want to sponsor economically disadvantaged youth with job training. This is only a one time event we want to do to raise money through ticket sales and a raffle. Where I lived before required a Certificate of Need to be purchased and a bank trust to be established for the funds. Is this the case in New York state?
You need a permit otherwise many people would be doing it.
You must prove that you will give the money to the charity.
Few things. To avoid being charged with fraud, if no money is going into or through a non-profit 501(c)(3) organization, and you’re implying that the money will be used for a charitiable purpose, then all ticket sales for your event should clearly state that the costs of the tickets are not tax deductible. Other than that, have a great time! No permits are needed for a party (held in a place appropriate for that number of people) where you charge money.
Two–raffles are bad. Raffles are gambing, and require a permit from the NYState Racing Authority.. but.. if it’s not being done by a charity, it’s not going to get approved. Many people hold small raffles anyway… but it’s not legal.. if you’re going by the book.
My recommendation: find a nonprofit to partner with. If you’re doing the heavy lifting, most nonprofits would jump at a chance to co-host a fundraiser with you.
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