Code of Massachusetts Regulations
940 CMR - OFFICE OF THE ATTORNEY GENERAL
Title 940 CMR 12.00 - Regulations Governing Raffles
Section 12.02 - Disclosure
Universal Citation: 940 MA Code of Regs 940.12
Current through Register 1531, September 27, 2024
(1) In any raffle conducted pursuant to M.G.L. c. 271, § 7A, the sponsoring organization must disclose the following information either on the raffle ticket itself or in a written notice given to the purchaser prior to the sale:
(a)
a full and fair description of the prize;
(b) the appraised value of the
prize;
(c) date or dates when the
prize will be available for inspection;
(d) if there is a minimum number of tickets
to be sold; what the minimum is and the procedure to be employed to secure a
refund in the event the minimum is not reached;
(e) the maximum number of tickets to be sold
if any;
(f) the fact that the value
of the prize will be treated as ordinary income to the winner for federal and
state income tax purposes and that the winner may be required to pre-pay a
portion of the tax liability prior to receiving the prize;
(g) the fact that the Internal Revenue
Service takes the position that no portion of the ticket price will qualify as
a charitable contribution for federal income tax purposes:
(h) the drawing date for the
raffle;
(i) the estimated
percentage of the ticket price which will be used for charitable purposes in
the event that only the minimum number of tickets are sold;
(j) the exact nature of the charitable
purpose for which the proceeds will be used:
(k) any other facts the disclosure of which
may have influenced the purchaser or prospective purchaser not to enter into
the transaction.
(2) Each ticket must bear a clear and conspicuous warning to the effect that depositing the ticket or any other material in connection with the raffle in the federal mails is a violation of federal law and may lead to criminal penalties.
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