• Raffles are used by organizations as a method of fundraising.raffle tickets image by Alison Bowden from Fotolia.com
  
  Raffles can be a fun and exciting way to raise money for an organization. In a typical raffle, participants purchase a ticket for a small amount of money and are in the running for a prize, which the organization chooses. While a raffle can be a simple way to raise money, it is important to be sure that you obey the laws of your state. In Massachusetts, raffles are regarded as gambling and are regulated by the gambling laws of the state.
  
  

Organizations

• Massachusetts law specifies the types of organizations that are allowed to conduct raffles in the state. The organizations that can apply for a permit to hold a raffle include veterans organizations, religious organizations, educational institutions, charities, fraternal societies and civic groups. According to the laws of Massachusetts, an organization must be active for at least two years before it is eligible to apply for a permit to conduct a raffle.
  
  

Funds

• Massachusetts law stipulates that the proceeds from any raffle must be used for charitable, educational, fraternal, religious or civic purposes, and not benefit any particular person in the organization. The purpose of the funds raised from a raffle must be clearly outlined in the permit application.
  
  

Permits

• Any application for a permit to conduct a raffle is reviewed by the office of the Public Safety Commissioner. The application must include the name of the organization, the name and address of the applicant, the names of three other officers of the organization and the purpose of the funds raised from the raffle. The applicant and officers named in the application are responsible for ensuring that the proceeds from the raffle are used for their stated purpose.
  
  

Taxes and Fees

• The commonwealth of Massachusetts charges a fee for the raffle application and permit, and all proceeds are taxed. Organizations are required to file a return with the Massachusetts State Lottery Commission within 10 days after the end of the raffle, and the organization will need to pay five percent of the proceeds in taxes to the state.