Legal Question in Business Law in California

Non-Profit Raffle

Hi, I came up with an idea and I'm wondering if it legal. I own a home based child care (sole prop) for 10 years. Can I turn it into a non-profit org and have a raffle for a grand prize of cash. Then take the profit to pay off the ''building/my home'' and just offer free child care?


Asked on 8/20/08, 4:34 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Non-Profit Raffle

You can't take profits out of a non-profit, EVER! Any earnings a nonprofit makes from a raffle, or a business activity, must be permanently earmarked for charitable, etc. purposes. What you seem to be proposing is strictly against the law.

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Answered on 8/20/08, 6:18 pm


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