Raffles can be great fundraisers, but it is important to follow all the federal, state and local rules. 

The Federal government is interested in the accurate reporting of income.  If your raffle prize is valued at $600 or more you are required to file a Form W-2G (Gambling Winnings).  If the prize is valued at $5,000 or more you are required to file a Form W-2G and withhold and remit income tax from the proceeds.  If a Chapter fails to withhold the income tax they are liable for the payment.  Please see the attached link for a 40 page booklet with all the rules and the forms (revised 2010).

http://www.irs.gov/pub/irs-pdf/p3079.pdf

State and local governments may also tax winnings and frequently license raffles.  It is very important to find out if you need to get a license before you finalize the plans for a raffle.  Frequently the license number is required to be printed on a ticket that will be pre-sold.  Review your financial procedures in light of any reporting you will have to do to the state on proceeds, number of tickets sold and prizes awarded.

Remember not to mail raffle tickets!  From the United States Postal Service -

Mailing a lottery or raffle ticket

Lottery and raffle tickets are not permitted mailings within the United States Postal Service.

This prohibition is based on a Federal law (Title 18, United States Code, Section 1302) passed by Congress and signed by the President of the United States.  "Lottery or raffle is a scheme or promotion, whether lawful under the laws of any state, which, on paying a consideration, offers a prize dependent in whole or in part on lot or chance."

The U.S. Postal Service has no authority to grant exemptions to this law, and is specifically mandated by Congress to enforce it.

 

Example Forms

 

Christ Child Society

 Name of Chapter

Mailing Address of Chapter

Title of Event - Main Event Raffle

NOTE:

In the past we have been able to mail three books of raffle tickets to purchase or sell Current USPS and Diocesan regulations prohibit the mailing of complete tickets (stub and purchasers plate intact).  We are still able to distribute these tickets at our General Meetings. Persons unable to receive tickets at the meeting are being sent an order form for their ticket purchase.  This order form along with payment should be returned in the enclosed envelope and the stubs will be returned to you.

Name:________________________________________________Phone: ______________________

Address/City/Zip:__________________________________________________________________

Number of Tickets ordered: ( $1.00 each / 6 for $5.00)

Payment amount enclosed: $                                 (DO NOT SEND CASH THROUGH THE MAIL)

If you are soliciting ticket sales from friends and family enter that information below:

Additional PURCHASERS names;

1 Name: ______________________________________   Phone:  _____________________________

Address/City/Zip:____________________________________________________________________

Number of Tickets ordered: ($1,00 each / 6 for $5.00)

Payment amount enclosed: $                                 (DO NOT SEND CASH THROUGH THE MAIL)

2 Name: _____________________________________     Phone: _____________________________

Address/City/Zip: ___________________________________________________________________

Number of Tickets ordered: ($1.00 each / 6 for $5.00)

Payment amount enclosed: $                                 (DO NOT SEND CASH THROUGH THE MAIL)

3 Name: _____________________________________     Phone: _____________________________

Address/City/Zip: ___________________________________________________________________

Number of Tickets ordered: ($1.00 each / 6 for $5.00)

Payment amount enclosed: $                                 (DO NOT SEND CASH THROUGH THE MAIL)

 

**********************************************************************************

TOTAL AMOUNT ENCLOSED FOR ALL TICKETS SOLD: $                                       

 

Mail Ticket Stubs & Payment to:  Name and Address for return



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