1.0 Policy Purpose
The purpose of this policy is to establish the requirements for holding a Raffle at Brown University.
2.0 To Whom the Policy Applies
This policy applies to all Brown University faculty, staff and students.
3.0 Policy Statement
This policy is intended to ensure compliance with federal, state and local laws and regulations, including the Internal Revenue Code, regarding the operation of Raffles. The proper designation of the charitable organization conducting the Raffle is Brown University, not any school, division, center, institute, committee or task force of Brown.
Operating raffles, where a Fee is required for entry, is permitted by the State of Rhode Island only when the Raffle is licensed by the Division of State Police. While educational organizations are eligible to obtain a license for such events, all proceeds or charges for admission or participation in such games, after expenses, must be applied exclusively to charitable or educational purposes. No one under the age of 18 is allowed to participate in a Raffle.
The value of a prize awarded through a Raffle is considered taxable income to the recipient, and the University may be required to report the value of the prize to federal and state revenue agencies and collect identity information about the winner. Additionally, the Internal Revenue Code may apply to prizes valued at $600 or more and when the prize value is more than 300 times the price of the Raffle ticket/entry Fee.
If the prize is valued at $5,000 or more, the University may be required to collect withholding tax from the prize winner. In order for a prize of this value to be allowable, prior senior officer written approval is required. Prizes of real estate, alcohol, or weapons are prohibited.
For the purpose of this policy, the terms below have the following definitions:
A Fee is anything of value necessary to participate in the games, any donation of value to the Raffle host, or any money collected to cover entertainment, food, beverages or expenses.
Considered a form of gambling, a Raffle generally refers to a method of distributing prizes among persons who have paid a Fee for a chance to win such prizes, usually determined by numbers or symbols on tickets drawn, predominately not involving skill.
All individuals to whom this policy applies are responsible for becoming familiar with and following this policy. University supervisors are responsible for promoting the understanding of this policy and for taking appropriate steps to achieve compliance.
Raffle Host: The Brown employee overseeing the Raffle is responsible for submitting the Brown University Raffle Proposal Form to the Controller’s Office and the RI State Police Games of Chance (Raffle) Application and Fee to the local police department at least sixty (60) days in advance of the event. Additionally, they must submit the Games of Chance (Raffle) Financial Report to the State Police within sixty (60) days following the Raffle’s conclusion and provide a copy to the Controller’s Office. Please note: Students are not permitted to organize a Raffle without a faculty/staff host.
6.0 Consequences for Violating this Policy
Failure to comply with this and related policies is subject to disciplinary action, up to and including suspension without pay, or termination of employment or association with the University, in accordance with applicable (e.g., staff, faculty, student) disciplinary procedures.
7.0 Related Information
Brown University is a community in which employees are encouraged to share workplace concerns with University leadership. Additionally, Brown’s Anonymous Reporting Hotline allows anonymous and confidential reporting on matters of concern online or by phone, 877-318-9184.
The following information complements and supplements this document. The information is intended to help explain this policy and is not an all-inclusive list of policies, procedures, laws and requirements.
7.1 Related Policies:
7.2 Related Procedures
7.3 Related Forms
7.4 Frequently Asked Questions (FAQs):