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Bill

H 3023

An Act relative to exemptions for small charities for tax upon raffle proceeds

194th Legislature (2025-2026) Introduced by Bruce Ayers

Exempts small Massachusetts charities from state taxes on raffle proceeds to reduce fundraising compliance costs and increase charitable revenue.

Hearing scheduled for 10/28/2025 from 01:00 PM-05:00 PM in B-2
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Bill Summary · H 3023

Legislative bill overview

H 3023 proposes to create a tax exemption for small charitable organizations on revenue generated from raffle proceeds. Currently, Massachusetts taxes raffle income for charities, and this bill would exempt smaller organizations from that tax obligation, reducing their compliance burden and increasing net fundraising revenue.

Why is this important

Raffle fundraising is a common practice for small nonprofits, and tax obligations can consume a meaningful portion of proceeds that organizations would otherwise dedicate to their charitable missions. The exemption could make fundraising more efficient for grassroots charities while potentially affecting state tax revenue in the process.

Potential points of contention

  • Revenue impact: The state may lose tax revenue if charities previously subject to raffle taxes are exempted, creating questions about fiscal sustainability and who bears the burden
  • Definition of "small": The bill's effectiveness depends on how "small charity" is defined—thresholds that are too generous could exempt larger organizations, while overly restrictive thresholds may provide minimal relief
  • Fairness and equity: Questions about whether exempting charities creates unfair competitive advantages versus for-profit fundraising entities or non-exempt organizations conducting similar activities

Compiled from official sources — confirm details with the bill’s official record.

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