Brian Lacy is correct regarding item #2 in that you are not required to
issue a 1099-G for gambling winnings of less than $600. BTW, a W-9 is the
form you file with a vendor/employer to provide your SSN or EIN.
In both cases, however, the winners cannot claim a tax-deduction (cannot be
issued a receipt) if they first do not take "ownership" of the winnings.
That is clear in item #1. In item #2 if the winner wants a receipt you are
best to issue a check and have them deposit it or, if the bank allows,
endorse it back to you.
As to whether the winner can stipulate a specific fund, that is entirely
within their legal rights as a donor - provided the donor does not specify
a student recipient.
John
John H. Taylor
Principal, John H. Taylor Consulting
2604 Sevier St.
Durham, NC 27705
johntaylorconsulting@gmail.com
919.816.5903 (cell/text)
Serving the Advancement Community Since 1987
On Thu, Mar 28, 2019 at 11:00 AM Sue Mathes <
smathes@dom.edu> wrote:
> At our annual Gala, two winners of the raffle told us to keep their
> winnings. Here are the two situations:
>
> 1) The first winner of $1,500 said to donate the prize to student
> scholarships. We will keep the money, no W9, no tax receipt.
>
> 2) The second winner of $500 said to donate the prize back to a specific
> endowed scholarship. Can we apply the gift to a specific fund without the
> winner accepting the prize first, hence issuing a W9 and a tax receipt?
>
> Sue Mathes
> Manager of Donor Records
> University Advancement
> Dominican University | River Forest, IL 60305
>