RESPONSIBLE CITY AGENCY: City Attorney’s Office
KEYWORDS: Drawings, lotteries, gambling, fund raiser, solicitation, religious, church, charity, charitable, not-for-profit, prize.
1. General
1.1 This rule sets forth the criteria under which religious, charitable, and other not-for-profit organizations may conduct solicitations involving the awarding of prizes without violating the criminal or constitutional provisions of the City or State pertaining to lotteries and gambling.
1.2 This rule provides guidelines to City departments and religious, charitable and other not-for-profit organizations relating to drawings which are consistent with the provisions of Article VI, Section 27 of the State Constitution, Utah Code Ann §§ 76-10-1101 et. seq. as amended or its successor, and the holding of the Utah Supreme Court in Albertsons, Inc. v. Hansen. This rule also contains a requirement to notify the Police Department of proposed drawings.
1.3 Definitions:
A. Religious, charitable, or not-for-profit organization: any organization which can provide written approval from the Internal Revenue Service that the organization has been granted tax exempt status under section 501(c)(3) of the Internal Revenue Code.
2. Criteria and Guidelines
2.1 Charitable and not-for-profit organizations which register with the Utah Division of Consumer Protection (see Utah Code Ann. §§ 13-22-1 et seq. as amended or its successor) or any religious organization may conduct a charitable or religious solicitation or fund raiser which includes the offering of a prize by drawing, chance, or otherwise, based upon strict adherence to the following conditions:
A. Religious, charitable, and not-for-profit organizations which plan to conduct a fund raising drawing should notify the Salt Lake Police Department at least two weeks in advance of advertising the drawing.
B. Prizes may be offered in order to cover promotional expenses of the fund raiser and shall consist of personal property or services only. Cash prizes are strictly prohibited.
C. The retail value of any and all prizes offered by a religious, charitable, or not-for-profit organization under the provisions of this policy shall not exceed ten percent of the estimated amount to be raised by the solicitation or fund raiser. Information regarding the total amount raised by the solicitation or fund raiser and the disposition of the prize offered shall be kept by the organization and made available to the City upon request.
D. A receipt shall be issued for each contribution or donation received. No more than one receipt or token shall be given for any donation or contribution received from any one person.
E. Every receipt or token offered for the possible awarding of prizes must be available without charge to any person. The organization may make the receipts or tokens available in person or by mail, and this availability shall be indicated on each receipt or token.
CURRENT REFERENCES: Utah Constitution Article VI, Section 27
Utah Supreme Court Ruling in Albertsons, Inc. v Hansen
Utah Code Ann. §§ 13-22-1 et seq.
Utah Code Ann. §§ 76-10-1101 et seq.
SLCC 11.28.
PRE-2012 REFERENCES: City policy 6.05.100; Administrative Rule – Drawings by Not-for-Profit or Charitable Organizations.
EFFECTIVE DATE: October 1, 1995
EFFECTIVE DATE OF REVISION (Date signed by Mayor):October 18,2012