Raffle Policy and Procedures

Purpose and Scope

Oakland Community College’s (OCC) departments and organizations are permitted to conduct raffles in accordance with the procedures and requirements in this policy.

 

Definitions

Raffle definition: A game of chance where raffle tickets are sold or provided, a winner(s) is determined by randomly drawing a ticket stub from a container, and a prize is awarded. Consideration, chance and prize together equal a gambling event that is likely going to require a license. Almost all raffles need to be licensed by the State. If a department or organization is holding a 50-50, an event with an admittance/registration fee that includes being entered in a drawing for a door prize, or a drawing for completing something, such as a survey, these are raffles and should be licensed. There are three raffle licenses, small, large, and combination (large and small on one license). Each raffle license is only good for the times, dates, and location listed on that license, and the raffle license must be posted during the event.

General information about raffles, rules and forms can be found at State of Michigan, Michigan Lottery, Charitable Gaming Division. Please note that the typical processing time for all raffle applications is 8 weeks. This includes OCC approval/signature and State of Michigan approvals. Failure to obtain proper licensing prior to a raffle can jeopardize OCC’s status as a qualified organization with the Charitable Gaming Division. Any OCC department and /or organization that fails to follow this Raffle Policy may be permanently dis-allowed for all future raffle applications.

 

Procedures for Raffles

A. Requirements and Rules:

1. Carefully review and follow all of the State of Michigan’s raffle information rules. Please note the following when reviewing rules and considering holding a raffle:
   1. Tickets may only be sold to purchasers who are 18 years of age or older.
   2. Required raffle records must be retained for three years, plus the current calendar year. See Charitable Gaming Division’s Raffle Guide - “After the Event” for detailed list of records required for retention. The Charitable Gaming Division reserves the right to inspect any game records before, during or after the event.
   3. If awarding a prize worth $2,000 or more, please contact OCC’s Financial Services Department immediately for Federal Tax Withholding information for any withholding requirements.
   4. Contact OCC’s Office of Advancement if any prize awarded is donated.
      
      
2. Employees may NOT use OCC accounts or College funds to purchase raffle tickets to obtain a prize.
   
   
3. Employees may NOT:
   
   1. Use the internet to sell raffle tickets.
   2. Sell raffle tickets over the phone to persons outside of Michigan.
   3. Sell raffle tickets at events outside of Michigan.
   4. Mail raffle tickets to purchasers.
      
      
4. Questions after reviewing raffle rules and forms should be directed to State of Michigan Charitable Gaming Division or call (517) 335-6578.

B. Raffle Application Process:

1. The only raffles that do not require a license are those where a qualified organization is conducting an exempt raffle. Exempt raffles are those conducted at a scheduled assembly or meeting with a specific beginning and ending time that is conducted or sponsored by the qualified organization, and only if all of the following are true: 1) the raffle will be held at a single gathering of the organization (where the primary purpose is for something other than the raffle), 2) all tickets will be sold, the drawing will be held, and prizes will be awarded at the single gathering (no pre-sale of tickets), and 3) the total retail value of all prizes awarded for the entire day does not exceed $100. All other raffles must be licensed. General information about raffles, rules and forms can be found at the State of Michigan Charitable Gaming site. Please also refer to OCC Raffle Checklist & FAQ page for completing the raffle application and financial statement.
   
   
2. Complete the Charitable Gaming Division Raffle License Application. OCC’ s Organization ID# 117638 must be included on the application. The information is the same for all departments for page one. Complete pages 2 and 3 specifics to department and raffle information. 3. ALL raffle related documents must be routed through the Office of Legal Affairs for approval and final signatures. Improper signatures will be rejected by the Charitable Gaming Division and may significantly delay the application process.
   
   
3. ALL raffle related documents must be routed through the Office of Legal Affairs for approval and final signatures. Improper signatures will be rejected by the Charitable Gaming Division and may significantly delay the application process.
   
   
4. The department holding the raffle is responsible for completing the application, routing it to the Legal Affairs office for signatures, securing the check through Financial Services for the license fee (payable to the State of Michigan), mailing the signed application and license fee to the State of Michigan (address found on Raffle Application), and completing the Financial Statement Process after the event.
   
   
5. Once approved, the Charitable Gaming Division will send a packet with the “official raffle license”, along with directions (you must display the license at the event), and the pre-filled “Raffle Financial Statement.”

C. Financial Statement Process

1. After the raffle event is held, the department who held the raffle must complete the pre-filled Raffle Financial Statement that was sent in the Charitable Gaming Division raffle packet, route for signature (requires executive signature, the Chancellor), and return to the State of Michigan by the due date. If the pre-filled financial statement has been misplaced, blank forms can be found at the State of Michigan Charitable Gaming site. The financial statement is due the 10th day of the month following the month that the raffle event took place. Failure to submit a financial statement will delay all other OCC raffle applications, which could be detrimental to other departments. Similar to the raffle application, the Raffle Financial Statement requires executive signature (the Chancellor’s). Improper signatures will be rejected by the Charitable Gaming Division.
   
   
2. Route the financial statement to Legal Affairs. Legal Affairs will review, route to Chancellor’s Office for final signature, provide a signed copy to Financial Services for record keeping. The signed financial statement will then be emailed/mailed back to the raffle contact person in the department.
   
   
3. The department (raffle contact person) is then responsible for submitting the completed financial statement, by email, fax or mail to the State of Michigan Charitable Gaming Division (please refer to the Financial Statement form on information where to submit).

D. Tax Reporting Requirements 

1. If a prize is valued at $2,000 or more, certain Internal Revenue Service (IRS) requirements must be followed. Please contact OCC’s Financial Services Department immediately if you will be awarding a prize worth $2000 or more to arrange logistics of Federal tax reporting, including:
   1. When a prize of $2,000 or more is awarded, after reducing the payout by the amount of the wager, you must obtain a Form W-9 from the prize winner along with the winner’s driver’s license number and the state that issued the license. This information is used to report game winnings to the IRS. It is not clear from IRS regulations, but the winner may also be required to provide OCC with Form W-2G for payments of $2,000 or more.
   2. When a prize of $5,000 or more is awarded, after reducing the payout by the amount of the wager, OCC may be required to collect withholding tax from the prize winner. Generally, the Federal withholding rate is 24% (31.58% for certain non-cash payments and the State of Michigan withholding rate is 4.25%). The winner also should provide OCC with completed and signed Forms W-9 and W-2G.
      
      
2. If any of the raffle prizes were donated, you must contact OCC’s Office of Advancement at 248-232-4148. They will direct you to complete an “In-Kind Gift Form”, and they will use this information to formally acknowledge donor gifts if they meet certain requirements.
   
   
3. Unrelated Business Income Tax Requirements – If the college holds raffles on a regular basis, the IRS may seek federal unrelated business income tax (UBIT) on the net revenue from the activity. But even if raffles are regularly held, the college may still be able to meet the federal exclusion for UBIT on charitable gaming if volunteers perform substantially all the work. In that case, the department is required to keep accurate records reflecting the number of hours worked on the raffle by compensated compared to volunteer workers. The department’s records are subject to review by the Financial Services Office.

 

OCC Raffle/Financial Statement Checklist

Departments should use this checklist to make sure all rules and steps have been taken in the raffle application and financial statement process. This checklist does not need to be turned in with the routing of the application or financial statement. It is a work aid for the department holding the raffle.

 

Raffle License Application:

 

Financial Statement:

 

FAQ on Raffles

See also OCC's Raffle Policy & Procedures, the State of Michigan FAQs and Raffle Guide.

 

Change Log:

• 02-23-2026  Approved by Executive Council

 

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