2013 South Carolina Code of Laws
Title 33 - Corporations, Partnerships and Associations
CHAPTER 57 - NONPROFIT RAFFLES FOR CHARITABLE PURPOSES
SECTION 33-57-110. Definitions.

<Section effective upon contingency.>

For purposes of this chapter:

(1) "Charitable purpose" means religious, charitable, scientific, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals within the meaning of Internal Revenue Code Section 170(c)(2)(B). Any interpretation of this statute with respect to charitable purpose shall be guided by the applicable Internal Revenue Code provisions and regulations of the Internal Revenue Service as interpreted by the courts.

(2) "Adjusted gross receipts" means gross receipts less all cash prizes and the amount paid for merchandise prizes purchased.

(3) "Member" shall have the same meaning as defined in Chapter 31, Title 33.

(4) "Nonprofit organization" means an organization recognized by the South Carolina Department of Revenue and the United States Internal Revenue Service as exempt from federal and state income taxation pursuant to Internal Revenue Code Section 501(c)(3), 501(c)(4), 501(c)(6), 501(c)(7), 501(c)(8), 501(c)(10), 501(c)(19), or 501(d), or is a class, department, or organization of an educational institution, as defined in Chapter 56, Title 33.

(5) "Nonprofit gaming supplies and equipment" means any material, device, apparatus, or paraphernalia customarily used in the conducting of raffles, including raffle tickets, and other apparatus or paraphernalia used in conducting raffles subject to regulation under this chapter. The term shall not include any material, device, apparatus, or paraphernalia incidental to the raffle, such as pencils, playing cards, or other supplies that may be purchased or leased from normal sources of supply.

(6) "Fifty-fifty raffle" means a raffle conducted by a nonprofit organization qualified to operate raffles pursuant to Section 33-57-120 and the proceeds collected by the sale of the raffle tickets are split evenly between the prize winner and the nonprofit organization after the raffle drawing.

(7) "Gross receipts" means all funds collected or received from the conduct of raffles.

(8) "Net receipts" means adjusted gross receipts less all expenses, charges, fees, and deductions that are authorized under this chapter. Payment of unauthorized expenses, charges, fees, and deductions from the gross receipts is a violation of this chapter.

(9) "Operate", "operated", or "operating" means the conduct, direction, supervision, management, operation, control, or guidance of activity.

(10) "Person" means an individual, an organization, a trust, a foundation, a group, an association, a partnership, a corporation, a society, any other private entity, or a combination of them, or a manager, agent, servant, officer, or employee thereof.

(11) "Raffle" means a game of chance in which a participant is required to pay something of value for a ticket for a chance to win a prize, with the winner to be determined by a random drawing or similar process whereby all entries have an equal chance of winning.

(12) "Secretary" means the Office of the Secretary of State.

(13) "Ticket" means tangible evidence issued by the nonprofit organization to provide participation in a raffle.

(14) "Year" means a twelve-month period that is the same as a nonprofit organization's fiscal year.

HISTORY: 2013 Act No. 11, Section 1, (contingent effective date).