§ 33-57-150 — Allowable expenses; report; records.

South Carolina § 33-57-150

• Jurisdiction: South Carolina
• Title 33: CORPORATIONS, PARTNERSHIPS AND ASSOCIATIONS
• Ch. 57: NONPROFIT RAFFLES FOR CHARITABLE PURPOSES

Text

(A) Expenses that are reasonable and necessary to operate and conduct raffles, as authorized by this chapter, are allowable. (B) Allowable expenses include only reasonable and necessary expenses incurred for: (1) advertising, including the cost of printing raffle tickets and gift certificates, provided that costs of advertising are reasonable and the services are not provided, directly or indirectly, in connection with any other service related to operating or conducting a nonprofit raffle regardless of whether those services are compensated; (2) office supplies, copying, and minor office equipment costs incurred in conducting or operating a nonprofit raffle; (3) reasonable postage, parking, and shipping costs; (4) costs of food and beverages, including corkage and gratuity fees, provided to the attendees and volunteers of the event; (5) costs of materials and supplies for decorating a facility used for a nonprofit raffle drawing; (6) entertainment-related costs, such as disc jockeys, music bands, auctioneers, waiters, bartenders, and wait staff incurred during the conducting or operating of a nonprofit raffle drawing; (7) repairs to premises and equipment related to conducting or operating a nonprofit raffle; (8) door prizes or raffle prizes; (9) stated premises' rental or insurance expenses; (10) security expenses incurred in conducting or operating a nonprofit raffle; (11) bookkeeping, accounting, or legal services utilized in connection with a nonprofit raffle including, but not limited to, the registration fees and the required financial reports; (12) permit costs, fees, or taxes required by local or state government to conduct and operate a nonprofit raffle; and (13) janitorial services and supplies incurred in conducting or operating a nonprofit raffle. (C) A report shall be submitted annually to the secretary no later than the fifteenth day of the fifth month after the end of the nonprofit organization's fiscal year. The report must be signed under penalty of perjury and must contain the following information for each raffle conducted within the preceding year: (1) the amount of the gross receipts; (2) the amount of adjusted gross receipts; (3) the total amount of expenses incurred in conducting the raffle; (4) the amount of the net receipts; (5) the total value of cash prizes awarded; (6) the total value of noncash prizes awarded; and (7) the number of tickets sold. (D) A nonprofit organization that has affiliates or subsidiaries that are registered to conduct raffles pursuant to the provisions of this chapter may submit a single report that contains all of the required information for each raffle conducted by the affiliate or subsidiary to the secretary provided that the report is submitted in a format authorized by the secretary. (E) Records required by this chapter shall be preserved for three years, and organizations shall make available their records relating to operations of raffles at any time at the request of a member of the organization, or investigators from the secretary or from law enforcement. For each raffle conducted, the nonprofit organization must maintain records of the following information: (1) a list of prizes offered and given with an estimate of their respective values; (2) an itemized list of expenses incurred or paid, including the name of each person, company, or governmental entity to whom an expense was paid; (3) each item of an expenditure made or to be made, with a detailed description of the merchandise purchased or the services rendered, and the name of each person, company, or governmental entity to whom the expenditure is to be made; and (4) the use to which the net receipts have been applied. (F) No new registration shall be issued to an organization that fails to file its report as required by this section until all reports are filed, and the secretary has confirmed that the information in the reports is in compliance with the provisions of this chapter. An organization that fails to file a timely annual report required by this section may be assessed by the secretary administrative fines of ten dollars for each day of noncompliance for each delinquent report not to exceed two thousand dollars for each separate violation. In addition to the assessed fines, the secretary may revoke an organization's registration for failure to file an annual report and bring an action before an administrative law judge to enjoin the organization from conducting raffles until the required reports are filed with the secretary.

Legislative History

HISTORY: 2013 Act No. 11, SECTION 1, eff April 4, 2015; 2020 Act No. 148 (S.719), SECTIONS 2, 3.B., eff September 28, 2020. Editor's Note 2013 Act No. 11, SECTION 5, provides as follows: "SECTION 5. The provisions of this act become effective thirty days after ratification of an amendment to Section 7, Article XVII of the Constitution of this State allowing its terms as proposed to the qualified electors of this State at the 2014 General Election." 2015 Act No. 3, SECTION 1, eff March 5, 2015, provides in part as follows: "SECTION 1. The amendment to Article XVII of the Constitution of South Carolina, 1895, prepared under the terms of Joint Resolution 102 of 2013, having been submitted to the qualified electors at the General Election of 2014 as prescribed in Section 1, Article XVI of the Constitution of South Carolina, 1895, and a favorable vote having been received on the amendment, is ratified and declared to be a part of the Constitution so that Section 7 of Article XVII is amended to read: [text of amendment follows]." 2020 Act No. 148, SECTION 3.B., provides as follows: "[SECTION 3.]B. This SECTION takes effect upon approval by the Governor [September 28, 2020]. The provisions of Chapter 57, Title 33 of the 1976 Code, as they existed on June 30, 2020, are reenacted. The reenactment discharges, releases, and extinguishes any penalty, forfeiture, or liability incurred after July 1, 2020, but before the effective date of this SECTION. This SECTION shall continue to apply until such time as Chapter 57, Title 33, or parts thereof, are otherwise repealed, mutatis mutandis." Effect of Amendment 2020 Act No. 148, SECTION 2, rewrote the section, adjusting certain recording requirements and allowing a nonprofit organization to submit a single report for all raffles conducted.