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.)
Charity fundraising event planners have to worry not only about the invitation list, the menu and the program. They also have to worry about a host of legal issues that, if ignored, could turn the event into a financial and public relations disaster. This webinar will explore the top ten areas of legal concern for a charity’s annual gala dinner dance, bikathon, day in the park, or other special fundraising event. Learn more in our pre-recorded webinar.
Weekly question and answer
Notice of each full edition
and its free stories
Report on 501(c)(3) electioneering
What our readers say about Nonprofit Issues
Once again you've tackled a tricky question and explained it so we all can understand the issue.--M.V.
Thank you for your informative and keen advice on nonprofit matters. I believe it's a unique and concise place to get answers to this often wispy area called nonprofit. --R.T.
Have a question?
Other ways to
Talk to the Editor
Next Conference Call:
Wednesday, May 7, 2014
Participate in this bi-monthly telephone seminar conference call and ask your questions directly to Editor Don Kramer.
Access the entire site
($9.95/24 hours, $17.95/3 months).
Full Day Program
A well-received full-day program that covers the current hottest topics in nonprofit law. Qualifies in Pennsylvania for Continuing Education credits.
Don is available for programs and speaking engagements ranging from a one-hour presentation to a full-day primer on nonprofit law. Contact us if you are interested in having him speak at your program.