To enter items for any "game" with a fixed price where each buyer receives a "prize" of varying value.
1. Add/Edit the Prize items
If you haven't already, enter or edit the prizes as items (type = sellable) so you can
- track the donation,
- thank the donor and,
- if desired, place the prize in the respective winner's cart.
2. Create Raffle Item to Sell "Chances"
Enter an item named Wine Wall or Balloon Pop. Donor = Friends of Your Organization. Give it sufficient quantity, set a price for participation, and select type = Raffle.
3. Decide How to Record Prizes
You can record prizes specifically or generically. There are tax implications for either choice, and we do not advocate one over another.
Option A: Do not record prize winners. Hand the prize to the winner. This method provides no documentation to buyers for potential tax deduction (if prize has FMV < ticket price) or "gambling earnings" (if prize has FMV > ticket price).
- Bulk Edit all prize items to "Visible to Public = No" so they do not appear in the public catalog.
Option B: Record prizes won. This method provides documentation on guest receipts for tax purposes. It is most commonly used to provide documentation to winners of high value prizes.
- Track and enter sales of raffle ticket chances, then track and "sell" prizes to winners for $0.
- You can bulk edit prize items to Visible to Public = No, if you don't want to display them in the catalog.
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