Is it legal for non for profit orgs. to run raffels and auctions? Is
the ticket price tax deducable? Does it have anything to do with the
gamming commision?

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Clarification of Question by 1pal-ga on 17 Jan 2006 01:46 PST

United States....primarily NY

I think you'll need to say where you are for people to answer this properly.

Thanks

hardtofindbooks-ga, thanks for the comment.

It is certainly legal following certain guidelines.

NY State Attorney General charities page
http://www.oag.state.ny.us/charities/charities.html

specifically
Information for Charitable Organizations Conducting Raffles in New York State 
http://www.oag.state.ny.us/charities/raffles.pdf

New York State Racing and Wagering Board Website 
Charities
http://www.racing.state.ny.us/charitable/char.home.htm
Raffles
http://www.racing.state.ny.us/charitable/raffle.htm

Auctions are not a form of gaming and are therefore not controlled by
the Racing Board



Tax deduction for raffles - No
from IRS Taxtopic 506 Charitable Contributions
http://www.irs.gov/taxtopics/tc506.html

"Contributions you cannot deduct at all include contributions made to
specific individuals, political organizations and candidates, the
value of your time or services and the cost of raffles, bingo, or
other games of chance. You cannot deduct contributions that you give
to qualified organizations if, as a result, you receive or expect to
receive a financial or economic benefit equal to the contribution."

Recommended solicitation from the Alliance for Nonprofit Management
http://www.allianceonline.org/FAQ/financial_management/what_is_tax_deductible.faq
"Not a charitable deduction. Do not state that the purchase of the
ticket is a 'donation'."


Deductions of Auction purchases - some.
again from IRS TAx Topic 506 source as above
"If your contribution entitles you to merchandise, goods, or services,
including admission to a charity ball, banquet, theatrical
performance, or sporting event, you can deduct only the amount that
exceeds the fair market value of the benefit received."
Recommended solicitation from the Alliance for Nonprofit Management source as above
"A catalog is issued listing each item and the fair market value for
each item. The catalog states, 'Purchasing an item for more than the
fair market value as listed in this catalog results in a deduction for
amounts above the price listed.'"