Located in California, we are a 501(c)3 corporation who has been approached to sponsor a raffle for a 'green' automobile, with interested parties donating $100 for a humanitarian project in India. Expected receipts are in the range of $300k. We realize that, because the donation is not given without strings (e.g. the donor hopes to win the auto), the donor is not eligible to receive a contribution receipt.

OUR QUESTION:
Would this activity in any way jeopardize our standing under the United States IRS rules for a 501(c)3 corporation?

Thanking you in advance,
B Marilyn :confused:

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Originally Posted by B Marilyn

Located in California, we are a 501(c)3 corporation who has been approached to sponsor a raffle for a 'green' automobile, with interested parties donating $100 for a humanitarian project in India. Expected receipts are in the range of $300k. We realize that, because the donation is not given without strings (e.g. the donor hopes to win the auto), the donor is not eligible to receive a contribution receipt.

OUR QUESTION:
Would this activity in any way jeopardize our standing under the United States IRS rules for a 501(c)3 corporation?

Thanking you in advance,
B Marilyn :confused:

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I would not even think about this without an opinon IN WRITING from a CPA. Many, many pitfalls.