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    B Marilyn's Avatar
    B Marilyn Posts: 1, Reputation: 1
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    #1

    Sep 3, 2008, 10:47 AM
    501(c)3 Corporation Raffle Rules
    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:
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
    		  
    #2

    Sep 4, 2008, 07:09 AM
    Quote 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:


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