FundSvcs Community

Hi there, 
My organization has a corporate partner (Smith Company) that wants to support us with end of year fundraising. They have offered to circulate a Donate link of ours to their mailing lists, in an attempt to crowdsource donations from their clients. They are going to match up to 20K in client contributions. Dream come true!
Where I pause- they would like to know which of their clients donate via the link, and would like to enter those clients into some sort of raffle. My organization would not be involved in the raffle beyond supplying the list of donors. I'm concerned about donor privacy, but think we could mitigate that via a simple check box on their donate page (something like "I Opt in to having my Name shared with the Smith Company as a part of this donation"). My question: Does having a third party offer a raffle incentive trigger rules about Games of Chance? We would obviously like these contributions to be tax deductible, but understand why the Smith Company would want to offer an additional incentive for giving. Is this just a bad idea?
Any advice would be appreciated!

------------------------------
Danielle Jarvis
Development Operations Manager
College Track
djarvis@collegetrack.org
------------------------------

Original Message:
Sent: 11/10/2021 3:30:00 PM
From: Danielle Jarvis
Subject: Third Party Raffle?

Hi there, 
My organization has a corporate partner (Smith Company) that wants to support us with end of year fundraising. They have offered to circulate a Donate link of ours to their mailing lists, in an attempt to crowdsource donations from their clients. They are going to match up to 20K in client contributions. Dream come true!
Where I pause- they would like to know which of their clients donate via the link, and would like to enter those clients into some sort of raffle. My organization would not be involved in the raffle beyond supplying the list of donors. I'm concerned about donor privacy, but think we could mitigate that via a simple check box on their donate page (something like "I Opt in to having my Name shared with the Smith Company as a part of this donation"). My question: Does having a third party offer a raffle incentive trigger rules about Games of Chance? We would obviously like these contributions to be tax deductible, but understand why the Smith Company would want to offer an additional incentive for giving. Is this just a bad idea?
Any advice would be appreciated!

------------------------------
Danielle Jarvis
Development Operations Manager
College Track
djarvis@collegetrack.org
------------------------------

Original Message:
Sent: 11/10/2021 3:34:00 PM
From: John H. Taylor
Subject: RE: Third Party Raffle?

The issue is that in order to participate in the raffle there must be a gift to you.  So, regardless of who conducts the raffle, this is still a game of chance and the donation is not deductible.  Only if someone could enter the drawing without making any donation would you be in the clear.

John

John H. Taylor

Principal

John H. Taylor Consulting, LLC

2604 Sevier St.

Durham, NC   27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

Original Message:
Sent: 11/10/2021 3:30:00 PM
From: Danielle Jarvis
Subject: Third Party Raffle?

Hi there, 
My organization has a corporate partner (Smith Company) that wants to support us with end of year fundraising. They have offered to circulate a Donate link of ours to their mailing lists, in an attempt to crowdsource donations from their clients. They are going to match up to 20K in client contributions. Dream come true!
Where I pause- they would like to know which of their clients donate via the link, and would like to enter those clients into some sort of raffle. My organization would not be involved in the raffle beyond supplying the list of donors. I'm concerned about donor privacy, but think we could mitigate that via a simple check box on their donate page (something like "I Opt in to having my Name shared with the Smith Company as a part of this donation"). My question: Does having a third party offer a raffle incentive trigger rules about Games of Chance? We would obviously like these contributions to be tax deductible, but understand why the Smith Company would want to offer an additional incentive for giving. Is this just a bad idea?
Any advice would be appreciated!

------------------------------
Danielle Jarvis
Development Operations Manager
College Track
djarvis@collegetrack.org
------------------------------

Original Message:
Sent: 11/10/2021 3:36:00 PM
From: Carol Nash
Subject: RE: Third Party Raffle?

John, could this be dealt with by offering the check box offered by the OP, and also another check box that says something like "I decline making a gift at this time, but please enter me in the raffle drawing". I doubt anyone would choose that, but by putting it out there would that be enough to please the IRS do you think??

 

Thanks to the OP – this is a REALLLY good question! J -Carol

 

Carol Nash (she/her/hers)

Advancement Coordinator and Database Manager

The Awty International School

7455 Awty School Lane  |  Houston, Texas 77055

Direct: 713-328-5861  |  www.awty.org

 

 

Houston's Premier International School

 

 

 

 

Original Message:
Sent: 11/10/2021 3:34:00 PM
From: John H. Taylor
Subject: RE: Third Party Raffle?

The issue is that in order to participate in the raffle there must be a gift to you.  So, regardless of who conducts the raffle, this is still a game of chance and the donation is not deductible.  Only if someone could enter the drawing without making any donation would you be in the clear.

John

John H. Taylor

Principal

John H. Taylor Consulting, LLC

2604 Sevier St.

Durham, NC   27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

Original Message:
Sent: 11/10/2021 3:30:00 PM
From: Danielle Jarvis
Subject: Third Party Raffle?

Hi there, 
My organization has a corporate partner (Smith Company) that wants to support us with end of year fundraising. They have offered to circulate a Donate link of ours to their mailing lists, in an attempt to crowdsource donations from their clients. They are going to match up to 20K in client contributions. Dream come true!
Where I pause- they would like to know which of their clients donate via the link, and would like to enter those clients into some sort of raffle. My organization would not be involved in the raffle beyond supplying the list of donors. I'm concerned about donor privacy, but think we could mitigate that via a simple check box on their donate page (something like "I Opt in to having my Name shared with the Smith Company as a part of this donation"). My question: Does having a third party offer a raffle incentive trigger rules about Games of Chance? We would obviously like these contributions to be tax deductible, but understand why the Smith Company would want to offer an additional incentive for giving. Is this just a bad idea?
Any advice would be appreciated!

------------------------------
Danielle Jarvis
Development Operations Manager
College Track
djarvis@collegetrack.org
------------------------------

Thank you John! Appreciate your speedy and thoughtful response.

------------------------------
Danielle Jarvis
Development Operations Manager
College Track
djarvis@collegetrack.org
------------------------------

Original Message:
Sent: 11-10-2021 02:45 PM
From: John Taylor
Subject: Third Party Raffle?

You essentially have to follow the public radio process - you must announce (very publicly) that no payment/purchase is necessary to enter.  While you will want a legal opinion, it is my understanding that the ability to enter must be in the public domain - such as on your website.  Not just on a solicitation piece.

This is why you will hear a disclaimer on public radio during the course of any day - even when not offering a drawing - that no pledge is necessary.

John

John

John H. Taylor

Principal

John H. Taylor Consulting, LLC

2604 Sevier St.

Durham, NC   27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

Original Message:
Sent: 11/10/2021 3:36:00 PM
From: Carol Nash
Subject: RE: Third Party Raffle?

John, could this be dealt with by offering the check box offered by the OP, and also another check box that says something like "I decline making a gift at this time, but please enter me in the raffle drawing". I doubt anyone would choose that, but by putting it out there would that be enough to please the IRS do you think??

 

Thanks to the OP – this is a REALLLY good question! J -Carol

 

Carol Nash (she/her/hers)

Advancement Coordinator and Database Manager

The Awty International School

7455 Awty School Lane  |  Houston, Texas 77055

Direct: 713-328-5861  |  www.awty.org

 

 

Houston's Premier International School

 

 

 

 

Original Message:
Sent: 11/10/2021 3:34:00 PM
From: John H. Taylor
Subject: RE: Third Party Raffle?

The issue is that in order to participate in the raffle there must be a gift to you.  So, regardless of who conducts the raffle, this is still a game of chance and the donation is not deductible.  Only if someone could enter the drawing without making any donation would you be in the clear.

John

John H. Taylor

Principal

John H. Taylor Consulting, LLC

2604 Sevier St.

Durham, NC   27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

Original Message:
Sent: 11/10/2021 3:30:00 PM
From: Danielle Jarvis
Subject: Third Party Raffle?

Hi there, 
My organization has a corporate partner (Smith Company) that wants to support us with end of year fundraising. They have offered to circulate a Donate link of ours to their mailing lists, in an attempt to crowdsource donations from their clients. They are going to match up to 20K in client contributions. Dream come true!
Where I pause- they would like to know which of their clients donate via the link, and would like to enter those clients into some sort of raffle. My organization would not be involved in the raffle beyond supplying the list of donors. I'm concerned about donor privacy, but think we could mitigate that via a simple check box on their donate page (something like "I Opt in to having my Name shared with the Smith Company as a part of this donation"). My question: Does having a third party offer a raffle incentive trigger rules about Games of Chance? We would obviously like these contributions to be tax deductible, but understand why the Smith Company would want to offer an additional incentive for giving. Is this just a bad idea?
Any advice would be appreciated!

------------------------------
Danielle Jarvis
Development Operations Manager
College Track
djarvis@collegetrack.org
------------------------------