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How do you hold a gun raffle?

Discussion in 'Uncategorized Threads' started by GoldEx, Aug 15, 2007.

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  1. GoldEx

    GoldEx Active Member

    Jan 29, 1998
    Howell, MI
    I am interested in having a gun raffle at our club in an effort to raise money for our SCTP teams. Never having done this before, what are the legal/tax rammifications for this? We are a Michigan 501 C 3 corporation. Woukld it be easier to just buy the gun myself, sell the tickets and donate the money to the club without going through the paperwork?

  2. Lkn4rocks

    Lkn4rocks TS Member

    May 16, 2007

    Why not talk to one of the attorneys that represent the gun club, he can explain all the tax stuff and the correct way to proceed in your state with your raffle.

  3. spitter

    spitter Well-Known Member TS Supporters

    Jan 29, 1998
    Prairie State
    Are you sure you're a tax-deductible charity and not another type of 501 (C)?

    I would recommend contacting a local firearms retailer and work out a arrangement whereby you contract for a firearm(s) at an agreed upon price. Thereby the potential winner(s) know in advance what they are expecting as a prize and you as an expense.

    Do not detour around any paperwork, make the prospective winners "qualify" for firearm ownership and deal directly with the retailer. Also, by going direct the prospective winners receive all warranty benefits.

    Another option we use is to offer a store gift certificate and/or a cash prize alternative in lieu of a firearm...


    1) BT99 OR
    2) $1000 Store Credit OR
    3) $750 Cash

    Store owners make 10-15% on a firearm, possibly 25-30% on merchandise, so for them its a non-issue. If your winner takes the cash prize the Club saves anywhere from $250-500.

    You can also offer similar lesser options for a 2nd or 3rd winner - depending upon how many tickets you plan to sell - we sell 400/$10

    PS... check with your local government about raffle permits!

    Jay Spitz
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