No. Only qualified 501(c)(3) or 501(c)(19) organizations that have applied and been approved are allowed to hold a raffle. Holding a raffle would be a violation of law and subject to criminal prosecution.

If the Secretary of State is notified of an unapproved event, the Division will notify the local district attorney general. Conducting an unapproved game of chance may be a violation of the criminal gaming statute, and local law enforcement has jurisdiction to investigate and prosecute the individuals responsible for the event.

Charitable Solicitations and Gaming Rules

A raffle is a game of chance in which a participant is required to purchase a ticket for a chance to win a prize, with the winner to be determined by random drawing.

Yes. The individuals who are not allowed to purchase tickets include:

• Any member of the board of directors of a 501(c)(3) or 501(c)(19) organization authorized by the general assembly to operate an annual event for such organization.
• Any officer or employee of a 501(c)(3) or 501(c)(19) organization authorized by the general assembly to operate an annual event for such organization.
• Any immediate family member residing in the same household as the board of directors or an officer/employee of the organization. (The Charitable Gaming Law defines immediate family as spouse, child, step-child, brother, sister, son-in-law, daughter-in-law, parent or grandparent)
• Any member of the general assembly during such member's term of office as a member of the general assembly.
• The Secretary of State or any employee of the Secretary during the Secretary's term of office and such employee's term of employment with the Secretary.
• Any vendors including employees, agents, or subcontractors (also includes immediate family members of the same household) who provide printing services, telephone services, and any records, devices, or other gaming-related supplies and those who provide prizes for the authorized annual gaming event.

Yes. A financial report is due 90 days after the annual event date stated in your application. If gross revenue from an event exceeds $75,000 an audited financial statement is also required. Also, organizations must return at least 25% of its gross proceeds of the event back to its stated charitable purpose or program.

• Prohibits entities from denying an individual any service, financial aid, or other benefit because of race, color or national origin.
• Prohibits entities from providing a different service or benefit or providing these in a different manner from those provided to others under the program.
• Prohibits segregation or separate treatment in any manner related to receiving program services or benefits.
• Prohibits entities from requiring different standards or conditions as prerequisites for serving individuals.
• Encourages the participation of minorities as members of planning or advisory bodies for programs receiving federal funds.
• Prohibits discriminatory activity in a facility built in whole or part with Federal funds.
• Requires information and services to be provided in languages other than English when significant numbers of beneficiaries are of limited English speaking ability.
• Requires entities to notify the respective population about applicable programs.
• Prohibits locating facilities in any way that would limit or impede access to a Federally funded service or benefit.
• Requires assurance of nondiscrimination in purchasing of services.

Raffles, reverse raffles, cakewalks, cake wheels, and bingo.

Please contact the district attorney for the county in which you believe the game of chance is taking place or contact Charitable Solicitations at (615) 741-2555 and the Division will notify the appropriate authorities.

Organizations with an approved gaming event can begin selling tickets 120 days before the event.

No. If someone is required to pay for a chance to win a prize, it is considered a raffle. Only qualified and approved 501(c)(3) and 501(c)(19) organizations may hold a raffle. It does not matter that the payment is called a “donation.”

An organization that fails to submit the report by 90 days will be responsible for a $10.00 per month late fee. If a report is not filed at all, action may be taken against the organization. Failure to timely file in 2 of 3 consecutive gaming event periods could result in disqualification from conducting future events.

You may obtain Form #SS-4507, Application for Certification of Municipal Clerks & Recorders and Continuing Education Credit, from our website or upon request from our office. 

For certification, the application must be accompanied by a copy of the certificate(s) from the institution(s) at which the qualifications were completed.  The certificate(s) (other than a degree) should indicate the number of hours completed.  If credit is claimed for job-related seminars, then documents must also be submitted outlining seminar content. 

For continuing education credit, the application must be accompanied by a copy of the certificate(s) of attendance and a statement as to the number of credit hours completed.  If credit is claimed for job-related seminars, then documents must also be submitted outlining seminar content. Please note that the Division of Business Services does not pre-certify seminars for content applicability or for applicable credit hours. Applications are accepted by mail, fax or in person. Upon receipt and approval of an application, the Division of Business Services will issue to the applicant a certificate confirming the certification or continuing education credit. 

The nonprofit must file a notice with the Division stating the reason less than 25% was returned to its charitable purpose or program. If this happens in two (2) consecutive years, the nonprofit will be disqualified from applying or holding future gaming events for a period of five (5) years.

Yes, however each participating organization must file an application and each pay the required fee. All applicants must qualify.  If one organization fails to qualify, then participants will be rejected.

• State and local government: Agencies distributing federal assistance or entities distributing federal assistance to the state or local government entity.
• Higher education: college, university, or other post-secondary institution
• Local education agency or system of vocational education, or other school system
• An entire corporation, partnership, or other private organization, or an entire sole proprietorship
• The entire plant or private corporation or other organization which is a geographically separate facility to which federal financial assistance is extended.

Title VI of the 1964 Civil Rights Act says, ”No person in the United States shall, on the grounds of race, color or national origin, be excluded from participation in, be denied the benefit of, or be subjected to discrimination under any program or activity receiving federal financial assistance.” 42 U.S.C.§2000d

Poker games and/or tournaments, pull-tabs, punchboards, video lottery games, instant and online lottery games, keno, and games of chance associated with casinos including, but not limited to slot machines, roulette wheels, and the like. Events such as bingo or “casino nights” that are purely recreational in nature and in which participants are not required to pay to participate with the promise of a prize, jackpot, or “winner-takes-all” would not fall into this category.

• Does not apply to Federal assistance provided through insurance or guaranty contracts, (e.g. FHA loan insurance).
• Does not apply to employment, except where employment practices result in discrimination against program beneficiaries or where the purpose of the Federal assistance is to provide employment.
• Does not apply to direct benefit programs such as Social Security.
• Does not apply only to contracts and set-aside programs.

Title VI is a mechanism that directs the federal financial assistance, which drives or promotes economic development. By legislative mandate, Title VI examines the following public policy issues:

• Accessibility for all persons
• Infrastructure development
• Accountability in public funds expenditures
• Minority participation in decision making
• Disparate impact
• Program service delivery
• Economic empowerment
• Public-Private partnerships in part or whole with public funds
• Environmental Justice
• Site and location of facilities

A municipality with a population of 1,500 or more according to the 1990 Federal Census or any subsequent Federal Census, which employs an officer or employee responsible for exercising any of the duties of Municipal Clerk & Recorder, must have at least one certified person.   For other municipalities, certification is optional. 

Raffles and games of chance are considered gambling, which is prohibited in Tennessee. However, certain charitable organizations are allowed to apply to have one raffle, reverse raffle, cakewalk or cakewheel each year if that event is conducted in accordance with the procedures set forth in the Tennessee Charitable Gaming Implementation Law.

The Division of Charitable Solicitations and Gaming maintains a list of approved events on its website at Gaming Events.

No. The law only allows qualified 501(c)(3) and 501(c)(19) organizations to hold gaming events. Political candidates and campaigns for public office are not considered 501(c)(3) or 501(c)(19) tax exempt organizations.

Only a qualified 501(c)(3) or 501(c)(19) organization that has submitted an application to the Division of Charitable Solicitations and Gaming and that has been approved by the Tennessee General Assembly can hold a raffle.

To ensure the broad, institution wide application of Title VI and other civil rights statutes Congress passed The Civil Rights Restoration Act of 1987. This act clarifies the definition of “programs and activities” covered by the nondiscrimination provisions of civil rights statutes. The revised definition states that discrimination is prohibited throughout an entire agency or institution, if any part of that agency or institution receives Federal financial assistance.

Examples:

1. (A) a department, agency, special purpose district, or other instrumentality of a state or local government; or (B) the entity of such state or local government that distributes such assistance and each such department or agency (and each other state or local government entity) to which the assistance is extended, in the case of assistance to a state or local government;
2. (A) a college, university, or other postsecondary institution, or a public system of education; or system of vocational education, or other school system.

Title VI applies to discrimination throughout an agency, not just to actions involving the federally assisted program. Therefore, if an agency receives any federal financial assistance for any program or activity the entire agency is required to comply with Title VI, not just that particular program. Example: The Harriet Tubman Express program receives money from HUD, the agency /division that Harriet Tubman Express programs are under (Health Services) must also be in compliance with Title VI rules and regulations.

Federal financial assistance means more than just money. It is also aid that enhances the ability to improve or expand allocation of a recipient’s own resources.

Examples:

• Student aid (releases recipient’s funds for other uses)
• Training of employees (permits better use of the employer)
• Grants and Loans, tax-exempt bonds
• Property
• Loan of Personnel
• Tax incentives and tax-exempt status
• Technical assistance, etc.

No. An event is considered a raffle if someone must pay for a chance to win a prize and would be a violation of law. It does not matter that the payment is called a “donation.”

A qualified 501(c)(3) or 501(c)(19) organization is a group that has been recognized by the Internal Revenue Service (IRS) for at least five years as a tax-exempt organization and which has been in continuous and active existence in the State of Tennessee. 501(c)(3) and 501(c)(19) tax-exempt status can only be granted by the IRS. To learn more about the application process for tax-exempt status, please visit the IRS's web page for Charities & Nonprofits.

To retain certification, a certified person is required to attend a minimum of  18  hours of continuing education courses every  3  years.   This requirement may be met by attending a minimum of 18 credit hours from any of the following or combination thereof, provided that the hours were not used to complete the required hours of education for certification: 

• The Academy for Advanced Education (U.T.);
• The International Institute of Municipal Clerks annual conference or state, provincial or regional clerks meetings;
• Seminars conducted by the Tennessee Municipal League;
• Leadership and Technical Programs (U.T. Municipal Training); or 
• Job-related seminars.

• Any person who is licensed to practice law in Tennessee and who satisfies continuing legal education requirements  
• Any person who has been appointed or is acting in the capacity of  a city manager or administrator and who possesses a M.A. degree in public administration  
• Any person who is a certified public accountant holding a certificate as provided in Section 62-1-106 or Section 6-1-107
• Any person who has served as both a city judge and city recorder for at least 25 years

To be certified, a person must obtain certification from the International Institute of Municipal Clerks or must complete a minimum of 100 credit hours from any of the following or combination thereof:

• The Municipal Clerks Institute (U.T.); 
• The U.T. Center for Government Training
• Seminars conducted by the Tennessee Municipal League;  
• Leadership and Technical Programs (U.T. Municipal Training); 
• Job-related seminars; or 
• An A.A. or A.S. degree (maximum credit of 25 hours) or a B.A. or B.S. degree (maximum credit of 50 hours), provided that credit will be given for only one degree.