Raffling a car can be an excellent way to raise money for your favourite charitable organisation or an alternative to selling your car. Raffles are illegal in some states; however, other states allow raffles, including car raffles, when state specific rules and regulations are followed. It is very important to carefully consider the value of the car you desire to raffle and to run conservative estimates on whether the funds raised by the car raffle will exceed the cost of the car or the debt owed on the car.
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Things you need
- Raffle tickets
Go to the attorney general's website for the state you intend to hold the car raffle in. Write down or print out the information, laws, regulations and licensing requirements for holding raffles in the particular state.
Decide if you want to hold the raffle yourself--if this is a legal option in your state--or if you will find a charity to run the car raffle through. If you owe a small debt or loan on the car, considering making a legal contract and agreement with the charity to pay the debt owed on the car through the raffle, leaving all the proceeds exceeding the debt as a charitable donation.
Consult with an experienced lawyer regarding your car raffle. The attorney can write up the contracts and also keep records of the paperwork if needed for a small fee. A lawyer who has experience with business operations and raffles will be a very valuable part of the process of raffling a car.
Clean and detail the car to prepare the car for photographs and/or display. If you are not experienced in this, take the car to your local dealership for them to wash and detail thoroughly using the same process they use to prepare used cars for resale. Ask for the high quality detail specifically.
Photograph your car to create advertisements for the raffle. If you are working with a non-profit organisation, they might have the resources or professional to create the advertising material once you supply the pictures of your car.
Create or purchase the raffle tickets. If you are raffling the car at a show or community event where people come up to a booth to buy a ticket, the plain raffle tickets on a roll might be sufficient if this is legally allowed in the state you are conducting the raffle in. If you are raffling the car at a high-end event, consider higher quality raffle tickets.
Keep records of all of the money raised during the car raffle or hire an experienced book-keeper or accountant if you are not experienced with accurate recording keeping for tax purposes.
Tips and warnings
- Remember to keep records of your raffle, financial records as well as photographs or video of the car, for tax purposes.
- It is typically easier to raffle a car that does not have a debt owed on the car or a lien on the title.
- Don't neglect to pay any taxes on the raffle as tax evasion is illegal.
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