How Do I Set up a Charity Car Raffle in Florida?
Raffles are used nationwide as a method of fund-raising by many non-profit organizations. In the state of Florida it is illegal for any individual to operate a game of chance, such as a raffle, for personal gain. However, as a non-profit organization with tax filings under the IRS 501(c)(3) tax law, the State of Florida will permit such an organization to operate a raffle as long as Florida state law is followed in the process and for the duration of the raffle. These laws apply to all raffles, including a car raffle.
Other People Are Reading
Things You'll Need
- Established place of business or operations for the organization (must have a street address)
- Non-profit organization tax privilege, such as 501(c)(3)
- Title for vehicle being raffled
Instructions
-
-
1
Prepare fliers and brochures describing the raffle, and information about the car which is being raffled. Prepare one section describing how long the raffle will run, what the final ticket entry date will be, and any limitations on how many tickets an individual may be allowed to purchase.
-
2
Prepare a second section in the flier or brochure which describes where the final drawing will take place, and who will be performing the drawing. To prevent internal conflicts of interest or fraud, a licensed and bonded third-party contest judge should be permitted to make the final drawing or drawings, ensuring that no one from within the non-profit organization can influence the drawing in any way.
-
-
3
Place a message at the front of the flier or brochure, in large and easy-to-read print, that no entry fee is required to participate in the raffle, but include a requested donation amount per entry. The State of Florida prohibits a fee being required to participate in a raffle, so a free ticket must be provided on demand regardless of whether the individual gives a donation or not.
-
4
Place the exact non-profit name, street address, phone number and contact person's name at the back of all fliers and brochures. The state of Florida requires that contact information be clearly printed on all raffle literature.
-
5
Allow any member of the public, or any government agent, to view the title of the car which is being auctioned should they request to see proof that the item is truly available to be raffled. As a non-profit organization, especially one that uses raffles in the state of Florida, all documents and information are public record. Anyone who comes to your place of operations demanding to see your records must be permitted to see them on demand, with no further questions asked.
-
6
Promptly contact the winner of the raffle and provide instructions for how the individual may claim and take possession of the car. The title must be signed by an official of the non-profit organization as "Seller," and the person who won the car must sign the title as "Buyer."
-
7
Provide a letter showing the contact information of the non-profit organization, as well as a statement showing that the vehicle was transferred to the new owner via a non-profit raffle and that it wasn't literally purchased. The tax assessor will then charge the winner a suitable amount of tax based on the value of the car, rather than based upon a purchase.
-
1
Tips & Warnings
Be certain that all taxes are the winner's responsibility. If you don't publicize this fact in the fliers or brochures, you will be responsible for paying the value tax of the car for the winner.
References
- Photo Credit life's a gamble image by Pix by Marti from Fotolia.com
