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<br />PRIZE RESTRICTIONS: <br /> <br />A single cash prize cannot exceed $1,000 and total cash prizes for a raffle cannot exceed $3,000 in one day. <br /> <br />The retail value of a merchandise prize cannot exceed $2,500. <br /> <br />The total of all cash prizes and retail value of all merchandise prizes for all games cannot .exceed $12,000 in a fiscal year July 1 <br />through June 30. <br /> <br />If the value of the planned cash and merchandise prizes exceeds $12,000, the organization must redUl:e the prizes to this limit or <br />apply for a state license with the Office of Attomey General. <br /> <br />LOCAL PERMIT AND CHARITY LOCAL PERMIT: <br /> <br />The major differences between a local permit and charity local permit are: <br /> <br />Local Pennit <br /> <br />Charity Local Pennit <br /> <br />Number of events per year <br />Must file an information report <br /> <br />. Umited by prizes <br />No <br /> <br />Onei <br /> <br />Yes <br /> <br />May pay employees compensation <br />Must use chips as wagers <br /> <br />Yes <br />No <br /> <br />No <br /> <br />Yes <br /> <br />Use of net income <br /> <br />Unrestricted <br /> <br />Restricted <br /> <br />Games allowed <br /> <br />Bingo <br />Raffles <br />Sports pools <br /> <br />Bingo <br />Raffl~~ <br />Sports pools <br />Poker <br />Twenty--(!Oe <br />Padd!ewheels <br /> <br />Compared to a 'ocal permit," an organization with a "charity local permif' may conduct 3 more game types, but is restricted to 1 event per <br />year, must file an information report with the city or county and Office of Attomey General, and must disburse net income to eligible uses. <br />These uses are described by North Dakota Century Code § 53-06.1-11.1(2} and North Dakota Administrative Code § 99-01.3-14-02. Refer <br />to the backside of the "Report on a Charity Local Permif' form for a general list of eligible uses. <br /> <br />For a charity local permit, one method to ensure that the total of all cash prizes and retail value of all merchandise prizes do not exceed <br />$12,000 is to charge each player a standard amount at the start of the event for a certain number or value of chips. If a player loses all of the <br />player's chips, the player may re-buy chips. The player would play games and, at the end of the event, the organization would auction <br />merchandise prizes to the players. The player who bid the highest number or value of chips for a prize would win that prize. For those <br />players who have chips but did not successfully bid on a prize, the organization may redeem the chips for a predetermined cash value per <br />chip. For this method, the value of players' chips redeemed for cash is not a prize. <br /> <br />INFORMATION REQUIRED TO BE PREPRINTED ON A STANDARD RAFFLE TICKET: <br /> <br />1. Name of organization; <br />2. TIcket number, <br />3. Price of the ticket, including any discounted price; . <br />4. Prize, description of an optional prize selectable by a winning player, or option to convert a merchandise prize to a cash prize <br />that is limited to the lesser of the value of the merchandise prize or one thousand dollars. However, if there is insufficient <br />space on a ticket to list each minor prize that has a retail price not exceeding fifteen dollars, an organization may state the total <br />number of minor prizes and their total retail price; <br />5. For a licensed organization, print "office of attomey general" and license number. For an organization that has a permit, print <br />the authorizing city or county and permit number, <br />6. A statement that a person is not required to be present at a drawing to win; <br />7. Date and time of the drawing or drawings and, if the winning player is announced later, date and time of that announcement. <br />For a calendar raffle, if the drawings are on a same day of the week or month, print the day and Üme of the drawing; <br />8. Location and street address of the drawing; <br />9. If a merchandise prize requires a title transfer involving the department of transportation, a statement that a winning player is <br />or is not liable for sales or use tax; . <br />10. If a purchase of a ticket or winning prize is restricted to a person of minimum age, a statement that a person must be at least <br />"_ft years of age to buy a ticket, or win a prize; <br />11. A statement that a purchase of the ticket is not a charitable donation; <br />12- If a secondary prize is an unguaranteed cash or merchandise prize. a statement that the prize is not guaranteed to be won and <br />odds of winning the prize based on numbers of chances; and <br />13. If a prize is live beef or dairy cattle, bison, sheep or pig, a statement that the winning player may convert the prize to a cash <br />prize that is limited to the lesser of the value of the animal or one thousand dollars. <br />