(Topic ID: 104236)

Help the Children and WIN a NEW STERN

By PunishersLEMC

9 years ago


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  • Latest reply 18 days ago by Project_Pinball
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#2524 6 years ago
Quoted from bluespin:

Your donation aka raffle ticket purchase is a tax deductible donation.

I want to weigh in just to correct this. In the U.S., the IRS does NOT consider a raffle ticket tax deductible, even if the raffle is handled by a charity (they are treated as nondeductible gambling losses), if the prize you are eligible to win is worth more than the raffle's ticket price. There are tax advantages you can still take, but it involves if you report gambling winnings as well.

Here is a link to the IRS publication spelling this out (see page 6 of the PDF under "Contributions From Which You Benefit", 3rd bullet point): https://www.irs.gov/pub/irs-pdf/p526.pdf

Or, another site that makes it a bit simpler to understand versus reading the IRS write-up: https://finance.zacks.com/raffles-irs-donation-deduction-2796.html

I don't want anyone to get into tax trouble regarding the raffles. Note this is just about the IRS, so I'm only talking U.S. and I'm only talking Federal.

If getting a tax deduction is what someone prefers, that's okay, Project Pinball is an eligible charity and you can donate to them and claim the deduction. You just can't buy the raffle tickets and call them donations in the IRS sense.

All that said, Project Pinball Charity is a well established organization with documented progress in achieving their mission. They are quite transparent with their finances and uses of money. So feel confident either donating directly or participating via the raffle system!

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