Community associations often look for creative ways to fund social events, amenities, or community improvements. Board members sometimes suggest hosting a 50/50 raffle or bingo night as a simple way to raise money while bringing residents together. While these activities may seem harmless, state laws heavily regulate games of chance.
Raffles and bingo typically fall under charitable gaming laws. Many State laws require organizations to obtain a charitable gaming license before conducting these activities. The licensing process also limits eligibility to certain types of organizations.
Charitable gaming laws generally allow only the following types of organizations to obtain a license:
- Charitable organizations. These groups operate for charitable, educational, religious, or similar purposes.
- Qualified nonprofit organizations. The organization must exist primarily to serve a charitable mission rather than to manage property or collect assessments.
Many community associations do not meet these requirements. Associations exist to manage and maintain common property, enforce governing documents, and collect assessments from owners. Even though many associations organize social events and community activities, they do not operate as charitable organizations because their primary purpose is not charitable. Because of this distinction, most associations cannot legally conduct a 50/50 raffle, bingo night, or similar game of chance. Associations that hold these events without authorization risk violating state law and exposing the association to potential penalties, which could include fines or other enforcement actions, like criminal charges.
Before planning any fundraising activity, boards should review applicable state laws, consult association counsel, and ensure the proposed event aligns with the association’s purpose and governing documents. Careful planning allows associations to support community initiatives while remaining compliant with legal requirements.
Kaman & Cusimano can help your board plan safe and effective fundraising activities. We work with associations to explore alternatives, review governing documents, and ensure compliance with legal requirements. If your association is interested in learning more about our services and how we can help, please click the following link: Request for Proposal and type “Bingo” in the subject field.
