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
You'll need to create an individual item in the catalog for any "prizes" which you want to:
- provide the donor with a receipt for and/or
- track the winner by "selling" it to them for $0 to provide tax documentation (rather than simply handing them their prize).
Use Type = Silent, and its appropriate quantity, FMV and Donor information. You can assign these to their own "table," or give them their own range of item numbers for easier item management.
2. Create Raffle Item to Sell "Chances"
Enter an item named Wine Wall or Balloon Pop. Donor = Friends of Your Organization. Make the Quantity = the number of prizes you have so you don't oversell, 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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