Raffle Type is used exclusively to sell tickets for a game of chance.
Items with Raffle type are created in order to record the sales, collect payments and report the revenue for raffle tickets.
Tips for entering Raffle Ticket items:
- If you are selling raffle tickets at different price points (eg $5 or 3 for $10), you must set up a separate item for each price point.
- Edit the quantity to reflect any limit on the number of tickets (chances) being sold, or a sufficiently large number if sales will not be limited.
- Note that Raffle type is limited to sale at Gala auction. Most states regulate online "gambling" and many prohibit selling raffle tickets online. If your state allows (or allows with a permit) online raffles, you may use type = Sellable (with FMV = Price) to sell raffle tickets online.
- Note that Raffle type does not generate a FMV field because games of chance are never tax deductible, so raffle items will automatically reflect FMV = Price.
- If you plan on promoting your raffle using the Web Catalog, be sure to include details such as FMV, number of tickets available and details of the drawing in the description.
Raffle items can also be offered as an add on item:
The software does not conduct the "drawing" or designate the winner(s) - the winner must be chosen and notified the old fashioned way - outside the software.
Create a separate item for the Raffle Prize if you want the software to:
- Provide the winner with a receipt showing the FMV of their prize, and/or
- Provide the prize donor(s) with a receipt (or thank you letter) for their donation
Tips for entering Raffle Prize items:
- If the prize was donated, select the donor record. If the prize was purchased by your organization, create and use a Friends of. . . donor record.
- Include Prize in the item name to clarify to your team that the item is not "for sale" and to appear on winner's receipt for tax purposes..
- Most important: Use Type = Silent to produce a description sheet, and to allow sale to winner for $0 (or a negative amount for cash prize credits) which will provide the appropriate price fields/documentation on the winner's receipt for tax purposes.
- Be sure to provide an accurate FMV for the winner's tax reporting. If the prize is "share the pot", you'll need to edit the item to update the prize amount once it is calculated.
- Uncheck the box at Add/Edit Item > Options > Display in Catalog. Since the item(s) set up to sell tickets can actually be purchased, it is generally easier to use the ticket item(s) to promote the raffle.