50/50 Disclosure

Under Section 849.0935 of the Florida Statutes, a tax-exempt organization may conduct a raffle provided that it conducts the raffle in accordance with the requirements set forth in the statute. The statute requires that any item that promotes that raffle (i.e. any brochure, advertisement, notice, ticket, entry blank, etc. must conspicuously disclose the rules governing the conduct and operation of the drawing. 

Below are sample rules for a 50/50 raffle.

1.                    The Florida Independent Automobile Dealers Association is the organization sponsoring this raffle. The mailing address of the business is PO Box 305 Deland, FL 32721

2.                    The prize to be awarded will be paid from the raffle proceeds.

(Note – the purpose of this item is to disclose the source of funds used to award cash prizes or to purchase prizes as required by the Florida Statute)

3.                    The prize to be awarded is 50% of the raffle proceeds received.

4.                    The winner will be selected by drawing and the prize will be awarded on Oct. 8, 2024, at 1 pm. The drawing will be held at Hilton Bonnet Creek Expo Hall.

5.                    No purchase or contribution is necessary to acquire a ticket to participate in the raffle. FIADA suggests a minimum donation in the amount of ____$100____ to participate in the raffle or event.

6.                    There will not be a limited number of tickets.

7.                    This raffle will be conducted in accordance with the requirements set forth in Section 849.0935 of the Florida Statutes.

8.                    A payment for a raffle ticket does not qualify as a charitable contribution and is not tax deductible.

9.                    The Florida Independent Automobile Dealers Association staff members and their family members are not eligible to win.

OTHER POINTS TO BE AWARE OF

The value of the prize received by the winner in a raffle is included in the winner’s gross income. If the prize is in the form of goods or services, the fair market value of the goods and/or services is incurable. The sponsor of a raffle that awards a raffle prize must issue an IRS 1099 form to the winner.

The raffle cannot be preconditioned on a certain number of tickets being sold.

Unless the raffle or auction is carried on primarily by volunteers, the earnings will be taxable as unrelated business taxable income.