Ready for a raffle? Follow the rules and this fundraising tool could be a winner
Abstract: Raffles have long been a popular fundraiser for nonprofits. They’re easy to produce, affordable for participants and reliable revenue generators. But they’re also subject to strict rules, particularly in the area of tax law. This article explains the federal income tax requirements linked to unrelated business income, reporting and withholding. A sidebar details when an organization might be required to withhold 28% of raffle prizes for federal income tax backup withholding.