Booking Raffle Proceeds

Alicia Van Straten · November 2018

We will be receiving funds in the coming month that will be proceeds from various raffles. Many baskets will be donated by employees/departments, and then at our holiday party, employees can buy an "arms length" of raffle tickets and then put their ticket in any of the baskets "bid boxes". This event raises money for our on campus food pantry. How do we book these proceeds in RE? Do we book these proceeds in RE? Since people are receiving goods/items in return, it really isn't a tax deductible gift? Thanks in advance for any help!

JoAnn Strommen · November 2018

While we may want to create records as necessary for those participating in the raffle for further cultivation, it sounds like these are employees and would be in your system already.

If the funds raised needed to be accounted for in reports run in RE, we would enter the total amount as one entry under our "unnamed" or our org record. You're correct that it's not tax deductible but not because of items received but because raffles are considered gaming/gambling. Doesn't matter if they win or not. (Often require special permits to hold also.) We would not be entering any gifts on personal records.

Kylea Johnson · November 2018

JoAnn Strommen:

While we may want to create records as necessary for those participating in the raffle for further cultivation, it sounds like these are employees and would be in your system already.

If the funds raised needed to be accounted for in reports run in RE, we would enter the total amount as one entry under our "unnamed" or our org record. You're correct that it's not tax deductible but not because of items received but because raffles are considered gaming/gambling. Doesn't matter if they win or not. (Often require special permits to hold also.) We would not be entering any gifts on personal records.

This is exactly what we do. If the raffle happens a lot we make a record like "Biology Club Raffle" and enter proceeds there.

Alicia Van Straten · November 2018

Yes, it is all employees that are buying raffle tickets and we have all their information in RE for our employee giving campaign so no need to enter individually, which we would only know the winner of each basket anyways. I like the idea of booking under a "x constituent" for total money raised. We then give it right back to the college departments account that manages the food pantry. Also, both the College's student involvement office and us as a Foundation, holds a raffle license from the state. Thank you both for your input!

Brian Davies · November 2018

When entering raffle ticket purchases I balance the time it takes to enter gifts vs analytics. It is easiest to enter "bag of cash" as method mentioned before, but you get the least retained data. If you enter purchases on the individual record you can capture and track some useful data like, how many tickets are bought per person, how many people participated, does this change year to year? Does a raffle ticket purchase count towards your annual participation totals? Is there presale of tickets, if so how many tickets are bought via presale vs day of? Will you steward those who bought tickets independently of those who did not participate? Of course you can always track this on a spreadsheet on the side, but I really like to be able to pull the data from the database.

Assuming you have sales info tracked, using batch to enter the sales should do short work of the gift entry, just make sure you enter the receipt amount at $0.

Booking Raffle Proceeds

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