About
One rule.
Every California charity.
The premise
California has two charitable raffle programs. Penal Code 320.6, passed in 2015 and made permanent by SB 650 in 2023, lets pro sports teams run 50/50 raffles. Since 2016 it has moved $48M+ to charity, tracked and published every year.
Penal Code 320.5, on the books since 2001, requires all other nonprofits to return 90% of raffle proceeds to charity. No aggregate data has been published since 2003. A sample of IRS 990 filings suggests the program raises roughly $93K per year across the entire state. For 200,000 California nonprofits, that is a dead program.
The ask
Extend 320.6’s framework to all California nonprofits. One rule. Same 50/50 split, same oversight, same transparency. If the Dodgers can run it, the food bank can run it.
Who's behind this
Shane Clary. An individual California resident with no stake in any sports franchise or nonprofit covered by either raffle program. This is an awareness effort, not an organization.
What this is not
- Not a registered 501(c)(3) or 501(c)(4).
- Not a PAC.
- Not accepting donations.
- Not affiliated with Senator Dodd, his staff, or any legislator.
- Not affiliated with any sports team, league, or charitable foundation.
Open to partnership
If you run a California 501(c)(3) that would benefit from a workable raffle rule and want to take this further, get in touch via the press page.
FAQ
Why does the 90% rule actually block raffles?
Because nonprofits have real costs. Printing tickets, running software, paying someone to count receipts, ticketing platforms, POS fees. If 90% of every dollar must go to charity, the remaining 10% has to cover all of it. For any raffle big enough to matter, the math doesn't work. Smaller events get run at a loss or not at all.
Why not just raise it to 70% or 80%?
That would be an improvement. But the argument for 50/50 is symmetry. The same rule that made professional sports raffles successful is the one that should apply to every other nonprofit. Splitting the difference creates a two-tier system based on whether your charity is attached to a stadium.
What about fraud?
The same oversight framework that keeps the Bureau of Gambling Control watching pro sports raffles would apply here. Modern raffle platforms can log every transaction, number every ticket, and produce the compliance reports California already requires of 320.6 operators.
Is the 90% rule literally unused?
No, some organizations still run compliant raffles, typically small ones where the prize is donated and the overhead is volunteer labor. But as a revenue engine for the California nonprofit sector, the program is effectively shut down.