crowd funding for NGO by coupon sale. Is this legal in India?

Q: Is any law in india for coupon ticket selling by the NGO for Crowdfunding ?? Q: if yes what should i do for getting Permission ?? i am a ngo board member. i want to some fund for social service for this i want to sale coupon ticket in public. coupon detail's is every ticket price is 2.50 paisa first prize to 5 prize option for buyers and winners. after the distribution of prize money or gift remaining coupon selling balance go to donation directly.

Answers (1)

84 votes

Though such lucky draws and lots are common in India, they do fall under the purview of a lottery as defined by the Lotteries (Regulation) Act, 1998. A lottery means a scheme, in whatever form and by whatever name called, for distribution of prizes by lot or chance to those persons participating in the chances of a prize by purchasing tickets. Getting a permit is virtually impossible.

The way to circumvent such regulations for your purpose could be achieved by organizing a "prize competition" where there the first, second and third place winners get a pre-determined prize. You could organize something as simple as a slogan writing competition and could charge the 2.50 paisa as entry and/or participation fee.

If there is no fixed prize amount or certainty about who will win (first/second/third) and win based on some level of skill and not chance, the activity would be illegal in India.

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