Is it permissible for a local Club to have a drawing at a meeting at which students of Aggie Moms present receive $50 Aggie Bucks?
No, for several reasons, this is inadvisable. The drawing would be limited to Club Members students and the Club Member must be present to win. This is clearly inconsistent with the community benefit and charitable purpose of 501(c)(3) entities. In addition, there is an annual limit of $25 per gift that would then subject the student recipient of the $50 Aggie Bucks to a gift tax obligation.
