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  • 1.  Raffles - IRS Rules

    Posted 10-30-2024 11:29 AM

    Hi everyone,

    I hate to even ask, but the idea of a raffle is being milled about.  I have read IRS Notice 1340 (https://www.irs.gov/pub/irs-tege/notice_1340.pdf) and understand the rules when admission tickets are being sold.  What are the IRS rules/tax implications if the event is free to attend but every attendee gets one raffle ticket?  The event would likely have a suggested donation, but that donation does not serve as their 'registration fee' to attend.

    Thanks!

    Molly



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    Molly Kaszuba
    New York Law School
    mollykaszuba@gmail.com
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  • 2.  RE: Raffles - IRS Rules

    Posted 10-30-2024 12:01 PM
    You will need to check NY State laws. While the suggested contribution may not be affected by the raffle, you may still need to register for the event with the state - although some states exempt "free" games of chance from the registration requirement.

    Also, depending on the value of the winning prize, you might need to issue a 1099-MISC.

    John
    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


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