My profit business wants to sponsor a gala to raise kids scholarship money in New York. Do we need a permit?

Question

Our vocational school is for-profit... but we want to sponsor economically disadvantaged youth with job training. This is only a one time event we want to do to raise money through ticket sales and a raffle. Where I lived before required a Certificate of Need to be purchased and a bank trust to be established for the funds. Is this the case in New York state?

Answer 1

Few things. To avoid being charged with fraud, if no money is going into or through a non-profit 501(c)(3) organization, and you're implying that the money will be used for a charitiable purpose, then all ticket sales for your event should clearly state that the costs of the tickets are not tax deductible. Other than that, have a great time! No permits are needed for a party (held in a place appropriate for that number of people) where you charge money.

Two--raffles are bad. Raffles are gambing, and require a permit from the NYState Racing Authority.. but.. if it's not being done by a charity, it's not going to get approved. Many people hold small raffles anyway... but it's not legal.. if you're going by the book.

My recommendation: find a nonprofit to partner with. If you're doing the heavy lifting, most nonprofits would jump at a chance to co-host a fundraiser with you.

More info at the sites below:

Answer 2

You need a permit otherwise many people would be doing it.
You must prove that you will give the money to the charity.