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Under Criminal Law Article,
ยง12-106 of the Annotated Code of Maryland, a charitable
organization may conduct a raffle of real property if it is for the exclusive
benefit of the organization and the prize awarded is real property to which the
charity holds title or to which the charity has the ability to transfer title. A
charity can not conduct more than two (2) raffles in a calendar year.
Under regulation .03 of
01.02.07 Code of
Maryland Regulations, a charitable organization must submit to the Charitable Organizations Division a
disclosure statement prior to advertising or conducting a raffle of real property. The disclosure
statement includes information such as the name and address of the charity, the address and
description of the property to be raffled, the date, time, and location of the raffle, the amount of
consideration, and the encumbrances and costs attributable to the winner of the raffle.
In addition to submitting the disclosure statement, the charity must obtain a permit, if applicable,
from the county in which the raffle will be conducted and the county or counties in which tickets will
be sold. Please refer to the "Raffles of Personal Property" for the appropriate
county agency.
In order for the charitable organization to be able to conduct a raffle of real property, the charity must own
at least equitable title to the real property to be raffled. It is acceptable for the the transfer of title
to the charity to be conditioned upon the actual holding or outcome of the raffle. If the transfer is subject
to a condition, the charity must submit with its disclosure statement a bona fide independent appraisal of
the property.
Additionally, the regulations specify the information that must be included on the raffle ticket
and the time period during which the transfer must occur. After the transfer, the charity is required
to submit an accounting of all income
and expenditures associated with the raffle.
To obtain a copy of the relevant provision of the Code of Maryland Regulations and the appropriate
forms, please contact the Division.
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