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

Question

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

23-Sep-2023 (In Criminal Law)

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)

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LawRato LawRato · Accepted Answer · 2015-09-23T08:38:54+05:30

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.