A Board on
which I serve wants to have a raffle that will give away money
and a car. Can you tell me what the dollar threshold is for
reporting the winnings to the IRS. Must we ask for people
to give their SS# in order to collect their prize?
The threshold for reporting gambling winnings on Form W-2G is generally $600. You must actually withhold if the winnings are more than $5000 from a sweepstakes, wagering pool, or a lottery. You must also withhold if the winner does not give you the SSN and the prize is reportable (over $600).
You may want to
be sure that the lottery is permitted under state law. Otherwise
it may be illegal activity subject to the possibility of criminal
prosecution. (Legality has nothing to do with the requirement
to report. That's how Al Capone went to jail.)
Planned giving sounds complicated, with its CRUTs and CRATs, CLUTs and CLATS, and CGAs. It can be incredibly complicated, but it needn’t be. Keeping it simple may be the best way to start a planned giving program for a charity that hasn’t already put one in place.
This webinar offered a review of major planned giving instruments and a discussion of ones that make the most sense to emphasize in starting a planned giving program. It discussed the advantages of integrating planned giving into an existing development program, targeting the best prospects, getting buy-in from the board that is likely to generate results, and setting a structure to make it all happen.
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