Student Club Activities Calendar
Fundraiser must comply with Texas Tax Code § 151.321:
1. A taxable item sold by a qualified student organization and for which the sales price is $5,000 or less, is exempted from the taxes imposed by Subchapter C, except that a taxable item manufactured by or donated to the organization is exempt from the taxes imposed by Subchapter C regardless of sales price unless sold to the donor, if the student organization:
a. sells the item at a sale that may last for one day only and the primary purpose of which is to raise funds for the organization; and
b. holds not more than one sale described by Subdivision (1) each month for which an exemption is claimed for an item sold.
2. In each calendar year, the first $5,000 of a qualified student organization's total receipts from sales of taxable items not otherwise exempt under Subsection (a) is exempt from the taxes imposed by Subchapter C.
3. A student organization qualifies for the exemptions under Subsections (a) and (b) if the student organization:
a. is affiliated with an institution of higher education as defined by Section 61.003, Education Code, or a private or independent college or university that is located in this state and that is accredited by a recognized accrediting agency under Section 61.003, Education Code
*In other words:
You can fundraise as many times as you wish as long as you don’t make more than $5000 in a calendar year (Jan.-Dec.)
If you plan to fundraise more than $5000 in a calendar year, then you can only fundraise once a month.
According to the Charitable Raffle Enabling Act, a raffle means the award of one or more prizes by chance at a single occasion among a single pool or group of persons who have paid or promised a thing of value for a ticket that represents a chance to win a prize. In Texas, only the following kinds of organizations may conduct raffles:
• An association organized mainly for religious purposes that have been in existence in Texas for at least 10 years
• A volunteer emergency medical service that does not pay its members other than nominal compensation;
• A volunteer fire department that operates fire fighting equipment and does not pay its members other than nominal compensation
• A nonprofit organization that: has existed for at least three preceding years, during which it has had a governing body duly elected by its members and is exempt from federal income tax under Section 501(c), Internal Revenue Code; does not distribute any of its income to its members, officers or governing body; does not devote a substantial part of its activities to attempting to influence legislation; and does not participate in any political campaign.
*In other words:
Student organizations are not allowed to conduct raffles for their benefit unless they are one of the organizations mentioned above. Student organizations may, however, sell raffle tickets on behalf of organizations that are eligible to conduct raffles, as long as 100% of proceeds benefit the eligible organization.