If the raffle fails, we would return the raffle money to the purchasers. The value of the raffle prize is taxable income to the winner. Before the prize is presented to the winner, we must have the name, address and social security number of the winner so that we can furnish a Form 1099 to both the winner and the IRS in January of the following year. Therefore, we must have the name, address and social security number of the winner so that we can furnish a Form 1099 to both the winner and the IRS in January of the following year. NHF reports these withholdings on IRS Form 945, Annual Return of Withheld Income Tax .
Donors have their own filing requirements.
If an individual donates self-created arts or crafts for an auction or raffle, he or she may deduct only the cost of the materials used in the art or craft item, not the price at which the item sells. When someone purchases a raffle ticket, it is not a charitable donation because their intent is to win a prize. Therefore, no receipts are necessary. If you have any questions, please call us.