(1) Any nonprofit organization holding a certificate of exemption under section 501 of the Internal Revenue Code or any volunteer fire company or volunteer first-aid, rescue, ambulance, or emergency squad may apply for a license to conduct a lottery or raffle. (2) Prior to applying for any license, an organization shall: (a) Be incorporated in this state as a not-for-profit corporation or organized in this state as a religious or not-for-profit organization; (b) Have at least ten members in good standing; (c) Conduct activities within this state in addition to the conduct of lotteries or raffles; (d) Be authorized by its constitution, articles, charter, or bylaws to further in this state a lawful purpose; and (e) Operate without profit to its members, and no part of the net earnings of such organization shall inure to the benefit of any private shareholder or individual.
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