Is an LAUSD booster club raffle off campus legal?

Last updated 2026-08-14

Is it legal for an LAUSD booster club to run a raffle off campus?

Location is mostly a red herring here. Whether a raffle happens in the school gym, in a restaurant parking lot, or over Zoom, the legal question is the same: does the organization running it hold a valid California raffle registration? Under California Penal Code Section 320.5, raffles are illegal unless conducted by an eligible nonprofit organization that has registered with the California Department of Justice's Registry of Charitable Trusts ^[1]. Moving the raffle off campus doesn't get a booster club out of state raffle law, and it doesn't get LAUSD out of the picture either. LAUSD has its own board policies on fundraising and use of the district name and logo, plus rules about who can solicit on behalf of a school. Booster clubs are typically independent 501(c)(3) or 501(c)(4) nonprofits, legally separate from LAUSD, which is exactly why they need their own state raffle registration rather than relying on the district's status ^[2]. So the honest answer: an off-campus raffle can absolutely be legal, but only if the booster club (not the school, not a parent informally, the actual registered nonprofit) has a current raffle eligibility number from the California AG's office and follows the reporting rules that come with it. Skip that step and it doesn't matter where the drawing happens.

What does California law actually require before running a raffle?

California Penal Code Section 320.5 lays out the core rules for what the law calls a "charitable raffle." The nonprofit must be tax-exempt, must have existed for at least one year before applying (with limited exceptions for reorganized groups), and at least 90 percent of the gross receipts from the raffle must go to beneficial or charitable purposes, meaning no more than 10 percent can go to costs like prizes, printing, or venue rental ^[1]. To actually get eligible, the organization registers with the Registry of Charitable Trusts using Form CT-NRP-1 (Nonprofit Raffle Registration) before conducting any raffle, and must submit it well before the event since registration needs to be current for the reporting year ^[3]. There's also an annual reporting requirement: Form CT-NRP-2, the Nonprofit Raffle Report, has to be filed after each raffle (or by the deadline set by the AG's office) disclosing gross receipts, expenses, and where the money went ^[4]. As the California Department of Justice puts it directly: "A nonprofit organization intending to conduct raffles must register with the Attorney General's Registry of Charitable Trusts... at least 60 days before conducting a raffle" ^[3]. That 60-day window catches a lot of booster treasurers off guard when they plan a spring raffle in February and only think about paperwork in March. There's also a narrower carve-out for 50/50 raffles specifically, added later under a separate statute, but the base rule for most booster club raffles (prize baskets, gift cards, big-ticket items) runs through Section 320.5 and the CT-NRP forms ^[1].

Does the booster club need its own tax-exempt status to run a raffle?

Yes, generally. Section 320.5 eligibility requires the organization to be exempt from tax under California Revenue and Taxation Code Section 23701d, 23701f, or similar sections, essentially the state-law equivalent of federal 501(c)(3)/(c)(4) status ^[1]. A booster club that's just an informal parent group with a shared bank account, no separate EIN, no state exemption, generally can't independently register for raffle eligibility. This is where a lot of LAUSD booster clubs get tripped up. Some parent groups assume that because they support a public school, they're automatically covered under some umbrella exemption. They're not. If the booster club has never filed for its own federal exemption or hasn't kept up its Form 990 filings and lost its exempt status through IRS auto-revocation, that gap can block state raffle registration too, since the state checks for current tax-exempt standing. If your booster club isn't sure whether it currently holds separate tax-exempt status, that's step one, before step one is even booking a venue for the raffle drawing. Confirm with the IRS and your state charity office where things actually stand.

Does LAUSD board policy add extra rules on top of state law?

Yes. State raffle law is the floor, not the ceiling. LAUSD, like most large districts, has board rules on booster club recognition, fundraising activity, and use of school names, mascots, and facilities that layer on top of Penal Code 320.5. Typically these require the booster club to be a formally recognized affiliated organization, to get advance approval for fundraisers that use the school's name or logo, and to follow district rules about where money raised for a specific team or program can be spent. Because these local policies vary by district and get updated, the right move is to check directly with the specific LAUSD school site administration or the district's office handling booster club/affiliated group recognition before finalizing any raffle, on campus or off. Don't assume state raffle registration alone satisfies district sign-off requirements, and don't assume district approval alone satisfies state raffle law. Both apply, separately.

What happens if a booster club runs a raffle without registering?

Running a raffle without valid Penal Code 320.5 registration is a violation of California gambling law, more than a paperwork slip. Unregistered raffles fall outside the narrow exemption the statute carves out from California's general prohibition on lotteries, meaning the activity can be treated as illegal gambling ^[1]. Practically, for a booster club, the more common real-world fallout is not criminal prosecution but organizational damage: loss of standing with the district, forced return of raffle proceeds, damaged donor trust, and headaches if the state Registry later flags the group during a routine review of its charitable filings. If the club also holds 501(c)(3) status, running unlawful gaming activity can complicate its federal exempt status story too, especially if it shows up as unrelated business activity or worse on a future 990 tax form. The fix is not complicated, it's just often skipped: file the CT-NRP-1 at least 60 days ahead, keep raffle records showing the 90/10 split, and file the CT-NRP-2 report afterward ^[3][4].

What is a booster club treasurer responsible for in all this?

What does a treasurer do? At the most basic level, a club treasurer tracks every dollar that comes in and goes out, keeps the bank reconciliation current, and makes sure the organization's paperwork (state registration, IRS filings, district recognition forms) stays current enough that fundraising activity like a raffle is actually legal to run. What do treasurers do day to day in a booster club specifically? Usually: deposit records, receipt logs for cash collected at events, a running ledger of raffle ticket sales against prize costs (to prove that 90/10 split if the state ever asks), and coordination with whoever signs off on district-required fundraiser approval forms. What a treasurer does is less glamorous than people expect and more about consistency than expertise. What is a treasurer, in plain terms? The person accountable for the club's money and its paper trail. That includes knowing when the club's federal exemption is at risk. If nobody has filed a 990-N or full ^[990](/articles/treasurer-basics/990) in three consecutive years, the IRS automatically revokes tax-exempt status under Internal Revenue Code Section 6033(j), and that revocation can, in turn, undercut the tax-exempt eligibility requirement for state raffle registration ^[5].

What does a treasurer do in a club, specifically around fundraising events?

What does a club treasurer do around something like a raffle? Practically, four things: confirm the club's state raffle eligibility is current before any tickets are printed, keep a clean count of gross ticket revenue versus prize and expense costs, hold onto receipts for at least the period required for the CT-NRP-2 filing, and flag to the board if the projected prize/expense costs are creeping past 10 percent of gross receipts, which would violate Section 320.5 ^[1]. What does a treasurer of a club do when the raffle is over? File the annual raffle report on time, reconcile the deposit against the ticket count, and file that information away for the next person who inherits the treasurer role, because raffle registration has to be renewed and reported year over year, not set up once and forgotten ^[3][4]. A lot of booster clubs bring in a new treasurer every year or two as kids graduate and parents rotate off the board. That turnover is exactly why raffle compliance gets missed: the person who registered the club with the AG's office two years ago moved on, and nobody told the incoming treasurer the registration needed renewal or that a report was due.

What is Form 990 and why does it matter for raffle eligibility?

What is Form 990? It's the annual information return the IRS requires most tax-exempt organizations to file, reporting revenue, expenses, and activities so the IRS and the public can see how a nonprofit operates ^[6]. What is the 990, functionally, for a small booster club? Usually not the full 12-page form; most booster clubs with gross receipts normally under $50,000 file the 990-N, a short electronic postcard confirming the organization still qualifies for the exemption . What is a 990 tax form used for in the raffle context? The state's registration requirements lean on the assumption that the organization's tax-exempt status is current and in good standing. If a booster club's exemption gets auto-revoked because nobody filed for three straight years, that can create a real problem when it comes time to certify state raffle eligibility, since the whole system depends on active, verifiable exempt status ^[5]. The IRS states plainly that organizations "that do not file for three consecutive years automatically lose their tax-exempt status" under the Pension Protection Act of 2006 rule now codified at IRC Section 6033(j) ^[5]. Recovery involves filing Form 1023 or 1023-EZ for reinstatement, sometimes with retroactive relief available depending on the circumstances, something worth reading the IRS Form 990 guidance on directly. Confirm current requirements with the IRS before assuming any shortcut applies to your club.

What paperwork trail should a booster club keep for an off-campus raffle?

Keep it boring and complete. At minimum: the CT-NRP-1 registration confirmation, a dated ticket sales log (tickets sold, price per ticket, total gross receipts), an itemized list of prize costs and other raffle-related expenses, bank deposit slips matching the ticket revenue, and a copy of the CT-NRP-2 report as filed ^[3][4]. If the raffle happens off campus at a restaurant, banquet hall, or community center, also keep the venue contract and any proof of district approval for using the school name in raffle promotion, since districts often require that regardless of location. None of this is exotic. It's the same kind of documentation any auditor or new treasurer taking over the books would want to see on day one, and it's exactly the kind of record that protects the club if the state Registry ever asks questions during a routine compliance check.

Where does a $99 kit fit into all this?

A booster club doesn't need a lawyer to run a legal raffle. It needs the right forms filled out in the right order, at the right time, with a place to store the paper trail so the next treasurer isn't starting from zero. That's the gap a state-specific reference kit is built to close. Boosterledger's $99 one-time State-Personalized Treasurer Kit walks through California's raffle registration steps, the federal 990 filing cadence, and the recordkeeping templates a treasurer actually needs, organized by state so a California booster club isn't sorting through rules written for Texas or Ohio. It's not legal advice and it doesn't replace confirming specifics with the IRS or the AG's Registry, but it turns a scattered checklist into an actual workflow.

What should a new booster club treasurer check first before any raffle?

Start with three yes/no questions. One: does the club currently hold active federal tax-exempt status, confirmed on the IRS Tax Exempt Organization Search tool, or has it been auto-revoked? Two: is the club currently registered under California Penal Code Section 320.5 with an active CT-NRP-1 on file with the Registry of Charitable Trusts? Three: has the club gotten sign-off from the school site or district on using the school's name and running this specific fundraiser? If any answer is no or unclear, that's the to-do list, in that order, before printing a single raffle ticket. Federal exemption problems can take months to fix if reinstatement filings are needed; state raffle registration needs at least 60 days lead time by the AG's own guidance ^[3]; district approval timelines vary by school and by season. None of this is fast to fix retroactively, which is exactly why it needs to happen before the raffle gets announced, not after.

Frequently asked questions

Is it legal for an LAUSD booster club to hold a raffle off school property?

Yes, if the booster club itself is properly registered under California Penal Code Section 320.5 with the Attorney General's Registry of Charitable Trusts. Off-campus location doesn't change the legal requirement; the club still needs current raffle eligibility, tax-exempt status, and to follow the 90/10 rule on prize expenses regardless of where the drawing takes place ^[1][3].

Does a booster club need its own tax-exempt status to run a raffle in California?

Generally yes. California Penal Code Section 320.5 requires the organization to be exempt under specific state tax code sections, essentially the equivalent of federal 501(c)(3) or 501(c)(4) status. A booster club without its own separate exemption, or one that lost it through IRS auto-revocation, typically can't independently qualify for state raffle registration ^[1][5].

How far in advance does a booster club need to register a raffle in California?

The California DOJ says nonprofits must register with the Registry of Charitable Trusts "at least 60 days before conducting a raffle," using Form CT-NRP-1. Waiting until a month before the event is too late under that guidance, so treasurers should build registration into the planning calendar early ^[3].

What is the 90/10 rule for California raffles?

Under Penal Code Section 320.5, at least 90 percent of gross raffle receipts must go to beneficial or charitable purposes, meaning no more than 10 percent can be spent on prizes, printing, venue costs, or other raffle expenses. Booster clubs need a ticket and expense log that can actually prove this split if asked ^[1].

What is Form 990 and does a booster club need to file it?

Form 990 is the IRS's annual information return for tax-exempt organizations, reporting revenue, expenses, and activities. Most small booster clubs with gross receipts normally under $50,000 file the short Form 990-N instead of the full return, but some filing is required every year regardless of size ^[6][7].

What happens if a booster club doesn't file Form 990 for three years?

The IRS automatically revokes federal tax-exempt status if an organization fails to file a required 990 or 990-N for three consecutive years, under IRC Section 6033(j). That revocation can then complicate state raffle registration, since raffle eligibility depends on holding current tax-exempt status ^[5].

What does a treasurer do in a booster club?

A treasurer tracks all incoming and outgoing money, reconciles bank accounts, keeps receipts and ticket sales logs for fundraisers like raffles, and makes sure required filings (state raffle registration, annual IRS returns) stay current. The role is about consistent recordkeeping, not accounting expertise.

Does LAUSD require its own approval on top of the state raffle law?

Typically yes. LAUSD and most large districts have board policies requiring booster clubs to be formally recognized and to get advance approval before using the school's name or logo in a fundraiser. State raffle registration and district approval are separate requirements that both need to be satisfied.

Can a parent volunteer just run a raffle informally without registering an organization?

No. California's raffle exemption under Penal Code Section 320.5 applies to eligible registered nonprofit organizations, not to informal groups or individuals. An unregistered raffle falls outside the exemption to the state's general prohibition on lotteries and can be treated as illegal gambling ^[1].

What is a 990 tax form used for?

It's the annual reporting document that lets the IRS and the public see a tax-exempt organization's revenue, spending, and activities. For raffle-running booster clubs, staying current on this filing matters because a lapse can trigger IRS auto-revocation, which then jeopardizes state raffle eligibility that depends on active exempt status ^[6][5].

What paperwork does a booster club need to keep after a raffle?

Keep the CT-NRP-1 registration confirmation, a ticket sales log with gross receipts, an itemized expense list, bank deposit records matching revenue, and the filed CT-NRP-2 annual raffle report. This trail proves the 90/10 payout split and protects the club if the state Registry reviews the filing ^[3][4].

Is a 50/50 raffle treated differently under California law?

California has a separate, narrower statutory allowance for 50/50 raffles beyond the general Section 320.5 rules, with its own conditions. Because the specifics differ from standard prize raffles, confirm current requirements directly with the California Attorney General's Registry of Charitable Trusts before running one ^[1].

Sources

1. California Penal Code Section 320.5: Core legal requirements for eligible nonprofit raffles, the 90/10 rule, and tax-exempt status requirement
2. LAUSD Policy Bulletin on School and Booster Club Relations: LAUSD board policy governing booster club recognition and district relations
3. California DOJ, Registry of Charitable Trusts, Raffle Registration: 60-day advance registration requirement and Form CT-NRP-1 process
4. IRS, Automatic Revocation of Exemption: Three consecutive years of non-filing triggers automatic revocation under IRC 6033(j)
5. IRS, Form 990 Series Overview: Definition and purpose of Form 990 annual information return
6. IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): Gross receipts threshold for filing Form 990-N instead of full return