Raffle Fundraisers What you need to know

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.

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, etc. Answers! If we don’t know, we will find out.

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

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.

What is a raffle? Note: No bingo. We are not currently licensed to conduct these. Very limited Monte Carlo. Prohibited!

Why do we need raffle training? Charitable gaming is highly regulated. 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. Far and above

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.

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.

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.

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!

What are the rules? Raffle License *We provide the license in the packet – all you have to do is post.

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*) (*You have all these forms with an asterisk in your resource packet!)

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

What are the rules? Tickets and ticket sales: Ticket (or handout) requirements (cont.) Price of the chance Full and fair description of the prize(s) FMV of each prize to be awarded A statement about the taxes being the responsibility of the winner Potential number of tickets being offered.

What are the rules? Tickets and ticket sales: Tickets should not contain the words “suggested donation”. 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.

What are the rules? Tickets and ticket sales: Tickets must be priced consistently. No discounts are allowed. There are no free tickets. No tickets may be purchased with credit card.

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. We cannot sell tickets more than twelve months in advance of the draw date.

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)

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.

What are the rules? Selecting the winner(s): Consider in advance how you will draw names for greatest perception of “fairness”. Where prizes for a raffle are unclaimed, the prizes should be held in trust for a period of one year from the date of the draw. If unclaimed, the prize is donated to the licensee.

What are the rules? Prizes: Must be 100% donated and be fully owned at the time of the raffle. Can be cash, merchandise, or gift certificates for merchandise or services. Cash prizes must not be over $2,500. Over $599 require additional reporting, appraisals, and may require taxes being collected.

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 Vehicles that have to be licensed or registered Alcohol (only one event a year)

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.) Prizes are not transferable.

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

Raffle Fundraisers What STAFF need to know The rest of the story ….

Today’s agenda ACS, Inc. raffle license Prior to the raffle The night of the raffle After the raffle Monte Carlo, Bingo, and Bunco notes

ACS, Inc. raffle license The ACS has a one year class A raffle license - renewed annually on May 31 This license authorizes an unlimited number of raffles and raffle income Raffles with income expected to be over $10,000 must complete form and get tickets approved.

ACS, Inc. raffle license Cumulative prize value is limited to $2,500 cash prize, $75,000 merchandise prize and $100,000 in total raffle prizes during a license year. Expenses are limited to 18 percent The license may only be used by ACS for ACS-sponsored raffle activity.

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.”

Prior to the raffle Tax implications for winners and forms required Winners of prizes that have a Fair Market Value (FMV) of $100 or greater must complete Oregon 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)

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) 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.

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 GW.Finance.Support@cancer.org or Wendy.Grunewald@cancer.org so that we can report to winnings to the IRS. 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.

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

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

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,

The night of the raffle Be prepared to correctly process raffle proceeds. Get raffle records from the team as soon as possible for three year record retention

After the raffle Process the money: Through Shared Services – account number 40260, expenses to 40261. Process prize taxes collected via Shared Services using Fund 1, Account 20013-1. (note: this account number won’t fit in the field – but please add, SSBC operators will manually key from batch header image.)

After the Raffle Please provide the following copies to Field Services and maintain for three years: W-9s Winner’s Register (over $100) Information about tax payments from winners (check and forms, or deposit confirmation and forms). Oregon Raffle Compliance Forms

After the raffle Maintain the following raffle records for three years: All winning tickets Donor acknowledgement forms 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

Need support? Resource packets – (You make it yours) This training information in a two page “Quick Guide” for staff and teams Oregon compliance reports Prize winner forms: W-9, Raffle Winners list Printed ticket template Rules of the game template Donor Acknowledgement Raffle license

Bingo, Monte Carlo and Bunco We cannot do bingo. We are not licensed and when/if we do get licensed we need to carefully control. We have a Monte Carlo license. Monte Carlo is highly regulated. Requires a worksheet to be filled out – and rental contract with third party. No cash prizes. Bunco falls under our MC license. There is a worksheet for Bunco as well.

Need support? Email GW.Finance.Support@cancer.org Wendy Grunewald (405) 782-1276 or via Lotus Notes.

Thank you for your time!