Charity plays a significant role in America's culture. According to PreventCancer.com, Americans' charity has allowed organizations like the American Cancer Society to raise billions of dollars. The ability to raise funds is a constitutional right in this country. However, restrictions on fundraising are enforced in the state of Texas.
The basic law surrounding the act of fundraising is enforced on a federal level for all states. This basic law, states Guidestar, requires only that the donation be voluntary. In order for these donations to be considered charitable, no gifts or services are allowed to be given in return.
In the state of Texas, there are many restrictions surrounding raffles. According to the Texas attorney general, a raffle is defined as an award given out by chance on a single occasion. The drawing is chosen from a ticket purchased as a chance to win said award. The state of Texas requires that the prize not be awarded in the form of money. The value of the prize may not exceed the amount of $50,000. If the prize is a house, then it can have a value of up to $250,000. Proceeds raised as a result of ticket sales can only be used to support a qualified organization.
Many states require charitable non-profit organizations to register via mail with their state of residence before accepting and requesting donations. Specific registration guidelines vary per state. Registration is usually implemented to prevent fraud. However, according to MultiStateFiling.com, the state of Texas does not require registration for charitable solicitation.