LANSING, Mich.— A bill to allow nonprofit, charitable organizations to directly obtain raffle licenses as fraternal organizations has been signed by Gov. Rick Snyder, said sponsor Sen. Tom Casperson, R-Escanaba.
Organizations across the Upper Peninsula including sportsmens groups asked for the law to be amended because of an unreasonable rule imposed by the state that has limited their ability to get raffle licenses.
“Fraternal organizations with 501(c) status can now get a raffle license directly from the Charitable Gaming Division to raise revenue for their charitable missions. This change will cut out unnecessary costs, headaches and paperwork that have burdened groups that are trying to help with educational and charitable purposes,” Casperson said.
Public Act 189 of 2012 (Senate Bill 1077) supersedes a rule that has prevented many clubs from being able to raise revenue for their charitable missions by needlessly requiring that a parent organization provide oversight over all of their financial matters. This oversight oftentimes came with a price tag that cost more than the groups would raise through their raffle, making it impractical for them to even apply for a license.
For example, under the old rules, it used to cost organizations $50 to get a raffle license directly from the Charitable Gaming Division, but the UP Bear Houndsmen have had to pay $5,000 in fees to a parent organization in order to get a raffle license.
“We feel this is a much-needed change and will help many organizations like ours around the state,” said Joseph Hudson, Upper Peninsula Bear Houndsmen Association president and Carney Roundup Rodeo president. “This will allow organizations in Michigan the ability to receive a raffle license that meets the proper 501(c) requirements.”