Raffle Fundraisers What you need to know 1

First of all - thank YOU! We sincerely appreciate all the time and resources you put into planning and conducting your team fundraising activities to support the important work of the American Cancer Society. If you decide to use a raffle to meet your team’s fundraising goals, we want to support you to ensure success and compliance with all regulations. 2

First of all - thank YOU! We will provide you with – Training – A packet of resources including materials such as – ticket and rules of the game templates, a quick reference guide, reporting tools, forms, list of deliverables, etc. – Answers! If we don’t know, we will find out. 3

Today’s agenda What is a raffle? Why do we need training? What are the rules? 4

What is a raffle? The following three factors determine whether an activity is a raffle. – A ticket is purchased (financial consideration) – Winners are selected randomly (all participants have an equal chance of winning) – A prize is awarded If the activity is a raffle – there are rules that must be followed. 5

What is a raffle? Note: No other forms of gambling. No casino style games or bingo. We are not currently licensed to conduct these. 6 Prohibited!

Why do we need raffle training? 7 As we have increased our raffle activity in Washington, compliance requirements and rules have increased as well. – Agency and state laws: which govern licensing, conducting, prizes, and reporting – Federal laws: which govern taxes – American Cancer Society: practices to ensure stewardship and protection of our reputation

And we must follow them all! Our reputation is our most important asset! Illegal activity or non-compliance impacts our ability to raise money in the future. Illegal activity or non-compliance increases expenses (significant fines, staff time, legal, audit, etc.). Illegal activity involving fraud reduces the money raised by the American Cancer Society and our millions of supporters. 8

What are the rules? Conducting the raffle: You must conduct your raffle as a representative of the American Cancer Society. – Why? Only licensed, exempt organizations can be licensed to conduct raffles. You must work very closely with your staff partner to ensure compliance with all rules. 9

What are the rules? Conducting the raffle: You must maintain records and provide them to your staff partner for reporting raffle income and records to the state and winner taxes to IRS. Local law enforcement must be notified in writing of gambling activity before the first ticket sale. 10

What are the rules? Advertising the raffle: No online promotions (or sales) are allowed. Radio and television promotion only within local area (not across state lines).

What are the rules? Participants: No one under 18 years old can purchase tickets; they can sell for a non-profit if activity is supervised by an adult. ACS staff and their immediate family and volunteers involved (in organizing) in the raffle activity should not participate – it is a perception issue. 12

What are the rules? At the drawing: The following items are required where raffle winners are selected: – House rules* including: Date, time, location of drawing Cost of ticket Prizes, restrictions, etc. Applicable taxes statement Fair market value of prizes Donor/sponsor information * we provide a template like this for you to use! 13

What are the rules? At the drawing: – Raffle license* – Problem gambling sign at all entrances* *We provide these in the resource packet – all you have to do is post! 14

What are the rules? At the event: Bring: – Prizes, receptacle, sold ticket stubs, unsold tickets (tracked on raffle ticket log sheets*) – Prize list with description and value of each prize – All raffle records (expenses, donor acknowledgements*, reporting forms*) – A copy of rules for possible inspection* (*You have all these forms with an asterisk in your resource packet!) 15

What are the rules? Tickets and ticket sales: You can use theater style tickets and provide ticket information to each purchaser or pre-printed tickets (using our ticket template provided in raffle resource packet). Ticket (or handouts provided with theater ticket) must have: – Date, time, and location of the drawing – American Cancer Society 16

What are the rules? Tickets and ticket sales: Ticket (or handout) requirements (cont.) – Price of the chance – FMV of each prize to be awarded – A statement about the taxes being the responsibility of the winner Tickets should not contain the words “suggested donation”. 17

What are the rules? Tickets and ticket sales: Tickets must be sequentially numbered. Stub and ticket should have matching sequence number. Stub should have purchaser’s name, complete address, phone number and other information to notify winner. 18

What are the rules? Tickets and ticket sales: Tickets must be priced consistently. If discounts are available, the plan must not change. There are no free tickets. Tickets must be priced at $100 or less. 19

What are the rules? Tickets and ticket sales: No mailing of tickets or payments or online sales; only face to face sales. We cannot compensate others to sell tickets on our behalf. 20

What are the rules? Tickets and ticket sales: Sellers must return all stubs and unsold tickets. We must account for all raffle tickets using a raffle ticket distribution log. (This form is included in your raffle resource packet) 21

What are the rules? Selecting the winner(s): Winners should be determined as advertised (where/when/how). Your raffle winner should be selected by random drawing of a winner from a receptacle. Winners do not need to be present to win. 22

What are the rules? Selecting the winner(s): Consider in advance how you will draw names for greatest perception of “fairness”. Draw two “back-up” winners. 23

What are the rules? Prizes: Must be 100% donated. Must be fully owned at the time of the raffle. Can be cash, merchandise, or gift certificates for merchandise or services. Over $599 require additional reporting, appraisals, and may require taxes being collected. 24

What are the rules? Prizes: All prizes must be aligned with the American Cancer Society’s mission. – The following are not allowed: Tobacco products Tanning services or products Animals Firearms or other weapons Alcohol (we don’t qualify for a special permit) 25

What are the rules? Prizes: If there are any limitations on a prize, make sure it is clearly communicated. (e.g., are there blackout or expiration dates; is airfare included, etc.) We must ensure the prizes are awarded Prizes are not transferable. 26

Contact your staff partner for more information. Thank you for your time! 27

©2013 American Cancer Society, Inc. No

Raffle Fundraisers What STAFF need to know 29

Today’s agenda ACS, Inc. raffle license Prior to the raffle The night of the raffle After the raffle 30

ACS, Inc. raffle license The ACS has a one year class F raffle license - renewed annually on May 1 This license authorizes an unlimited number of raffles and raffle income Prizes are limited to $40,000 per prize and $80,000 in total raffle prizes during a license year. The license may only be used by ACS for ACS-sponsored raffle activity. 31

Prior to the raffle Take the training to understand: – Raffle rules so that you are able to supervise the raffle. “…direct, oversee, and inspect the work of others; to exercise authority with respect to decision-making or the implementing of decisions; and responsibility for the performance of functions integral to the operation of raffles including the facility used to conduct the activity.” 32

Prior to the raffle – Tax implications for winners and forms required Winners of prizes that have a Fair Market Value (FMV) of $50 or greater must complete WA Raffle Winners Register. (State law) Winners of prizes that have a Fair Market Value (FMV) of $600 or greater must complete WA Raffle Winners Register and an IRS form W-9 (ID required). (Federal law)W-9 33

Prior to the raffle – Tax implications for winners and forms required (cont’d). Winners of raffle prizes that have a FMV of $5,000 or greater must complete the WA Raffle Winners Register and an IRS W-9 (ID required) as well as pay taxes (25%) on the FMV of the prize prior to receipt of prize. (Federal law)W-9 Donations back to the Society must be handled as two separate transactions with proper processing for both. If the prize is a car, the prize must include all sales tax and applicable fees. 34

Prior to the raffle – Tax implications for winners and forms required (cont’d). You must provide all tax information (completed W-9 and the winners register) to Field Services at or so that we can report to winnings to the Please also provide separate documentation to Field Services for 25 percent tax withholding. Field Services works with regulatory compliance team to submit payment to IRS. 35

Prior to the raffle Take training to understand: – What resources are available for team training and coaching – What records are required and how long they must be kept – Where to escalate issues and questions – How to process the money 36

Prior to the raffle Train teams early and often, listen for words like chance, drawing, lottery, etc. Provide them with resource packets Redirect the activity if they (or you) can not put the appropriate amount of resources into managing the raffle and compliance 37

The night of the raffle Ensure teams are operating in compliance Touch base to make sure they remember basics: tax requirements, keep records, no youth ticket sellers, no free tickets, etc. Have tax forms (W-9, Winner’s Register, Donor Acknowledgement forms) copies of license, rules of the game signs, problem gambling signs 38

The night of the raffle Have copy of the Washington rules on hand should compliance officers visit your event. Be prepared to correctly process raffle proceeds. Get raffle records from the team as soon as possible for three year record retention 39

After the raffle Process the money: Record the income (use the WA Deposit Transmittal Form) and send to Rachael Suryan in Seattle. (keep copies) – Convert all cash to money order. (Charge fee to account (bank charges) and special event Lawson location/activity code) – Rachael will deposit in a Washington bank as required by law 40

After the raffle Process the money: – Rachael provides the coding information on the Deposit Transmittal form to me for Lawson booking (done by SSBC Finance.) Process prize taxes collected via Shared Services using Fund 1, Account (note: this account number won’t fit in the field – but please add, SSBC operators will manually key from batch header image.) 41

After the Raffle Please provide the following copies to Field Services: – W-9s – Winner’s Register – Information about tax payments from winners (check and forms, or deposit confirmation and forms). – Washington Raffle Compliance Forms 42

After the raffle Maintain the following raffle records for three years: Washington Compliance Documents: – Raffle Ticket Distribution Log – Raffle Winners Register – Gambling Commission Raffle Summary – Merchandise Inventory Control Log 43

After the raffle Maintain the following raffle records for three years: – Deposit transmittal forms – All winning tickets – Name, address, telephone number for all winners with FMV greater than $50 (winners register) – Unsold tickets for raffles for which receipts exceed $5,000 – Donor acknowledgement forms 44

After the raffle Maintain the following raffle records for three years: – Appraisal (value determined by donor) unless over 5K then independent appraisal is required – Raffle ticket log sheets and copy of winning ticket for each prize level – All expense records and receipts 45

Need support? Resource packets – (You make it yours) – This training information in a two page “Quick Guide” for staff and teams – Washington compliance reports (with example report) – Prize winner forms: W-9, Raffle Winners list – Washington raffle deposit transmittal form – Printed ticket template – Rules of the game template 46

Need support? Resource packets – Donor Acknowledgement – Raffle license – Problem gambling sign – Washington gambling rules for inspections 47

Need support? Wendy Grunewald (405) or via Lotus Notes. 48

Thank you for your time! 49