The 50/50 raffle rules are as follows:

1) Announce that the raffle is to benefit MCULLAF/MCULAF.

2) Announce that the raffle is a “political event” and the purchase of a ticket constitutes “admission” to the political event.

3) Make sure to discuss the upcoming elections, a particular candidate in your area, or anything else considered political.

The background on why you must follow guidelines 1-3 above is as follows: In 1998 the IRS ruled that raffle proceeds for a PAC were taxable. In December 1999 that ruling was reversed with one caveat; the raffle drawing must be at a “political event.” In conjunction with our legal counsel we have developed a raffle remittance form (see below) to assure compliance.

4) You may make one drawing per event.

5) Sell tickets only to persons that are solicitable. (Those solicitable are your members or members of MCUL Affiliated CUs. If the money will benefit the federal PAC all credit unions MUST have valid permission statement on file with the MCUL).

6) The prize cannot exceed $100. Because the prize cannot exceed $100, most drawings will not be a true 50/50. As long as you make it known that the prize will not exceed $100, you may sell as many tickets as you please. For example, you sell 500 tickets at $1.00 each and give a $100 prize and a $400 contribution to the PAC. Special Note: If you are conducting this fundraiser for the federal PAC (MCULLAF), you will need to comply with the one-third rule. For example, since the prize cannot exceed $100, you will need to raise at least $300 from the raffle per the one-third rule. You can raise more, not less.

Guidelines 4-6 are required because the Michigan State Lottery & Charitable Gaming Division rules state that an organization may conduct raffles without registering or obtaining a license if:

a. There is no presale of tickets—all the tickets are sold at a single gathering.
b. The drawing is conducted at the same gathering that the tickets are sold.
c. The total aggregate market value of the prizes does not exceed $100. For prizes over $100 a license is required.