Good morning all!
One of my clients' park committees have asked if they can conduct a raffle for the benefit of the parks. I have referenced 21 O.S. § 1051https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=69564 and I have come to the conclusion that a park committee may not conduct a raffle pursuant to the terms of A. 4. (1) - (8). These subparts of the statute identify some of the qualified organizations that may conduct a lottery. There are several governmental or quasi-governmental entities that are permitted to do so: accredited public schools, fire departments, police departments, and organizations exempt pursuant to 501 (c) of the IRS code. However, a municipality or committee organized by a municipality is not among them. Municipalities are not 501 (c) (3) entities because the city is not formed for the exclusive purposes described in 26 U.S.C. § 501. Even though police departments and fire departments are arms of a municipality, no other "department" of a municipality was identified and no general or catchall description of departments, agencies, or arms of a municipality were included in the statute. This lends me to conclude that only police and fire departments may conduct a raffle.
Now a fire department and police department may conduct a raffle, but pursuant to the terms of 21 O.S. § 1051, "the qualified organization" is raising the funds and the "voluntary contributions" are made to the qualified organization in conjunction with issuing the tickets. So, I do not think that a fire department or police department can conduct a raffle for the "benefit" of the park committee.
Of course, I may be missing something so I am putting this proposition out there for any assistance that may be offered to assist the committee conduct a raffle.
The only potential solution that I see is to conduct a public auction of property that has been declared surplus by the municipality after the appropriate notice has been published. I am concerned though about the city purchasing property to then be auctioned off because to make the purchase of the goods, I am inclined that there must be a need for the municipality to acquire the property. However, I am more confident that people may donate items to a municipality to be auctioned off as surplus. Again, I would like input on this before making a recommendation to my committee.
Any ideas?
Thanks,
Ray
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Robert Ray Jones, Jr., Director
119 N. Robinson, Suite 1200
Oklahoma City, OK 73102
405-235-7471 | 405-232-3852 (fax)
www.lytlesoule.comhttp://www.lytlesoule.com
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