Please click on the questions for the answers. If you don’t see your question, please submit an email to questions@raffleahouse.com. We will answer you directly.
Ticket Buyers
Q: Are House Raffles legal?
A: Yes, many states have passed laws authorizing nonprofit organizations the ability to conduct raffles to support their charitable and philanthropic activities. We recommend you check with your local authorities, since each state has their own laws and statutes that outline what must be done in order to conduct a legal raffle. Here are some links to start your search:
http://rafflefaq.com/united-states-raffle-laws/
http://www.gambling-law-us.com/Charitable-Gaming/
Q: Who can buy a raffle ticket?
A: Raffle ticket purchasers must be at least 18 years of age at the time of purchase. Raffle tickets may not be purchased in the name of a business, trust, corporation, or other entity, or wherever prohibited by applicable law. Raffle tickets may not be purchased in the name of members of the Board of Directors or employees of the charities or RaffleAHouse.Com. Prize winners may be required to sign an affidavit of eligibility.
Q: How many raffle tickets will be sold and how much is each ticket?
A: Every raffle drawing has a designated amount of tickets that need to be sold as well as a specified drawing date and ticket price. Please view the details of each house raffle posted.
Q: Can I buy more than one ticket?
A: Yes. You may buy as many tickets as you like.
Q: How many raffle tickets can I buy?
A: You can purchase any amount of tickets.
Q: Can I buy my Raffle ticket with a credit card, a debit card or an ATM card?
A: Yes. We accept Visa, Master Card, Discover and American Express.
Q: Can I go online and buy my Raffle ticket with a credit card?
A: Yes, go to the “Ticket Buyers” tab for the raffles in states that allow raffle ticket purchases online. For example, California is a state with an exception, you have to buy your tickets over the phone, fax it or mail in an order form.
Q: Are the raffle tickets consecutively numbered?
A: Yes, raffle ticket numbers are generated consecutively on the raffle tickets.
Q: Can my company or business buy tickets?
A: Yes, your company or business may purchase tickets, but the Raffle law requires that all tickets must be in the name of individuals. They cannot be bought in the name of the company.
Q: Can I go in with friends or family to buy a ticket?
A: Yes. Up to two people may buy a ticket together and have their names on the ticket.
Q: Can I give the ticket to a friend? Can it be a gift?
A: Yes. You may buy the ticket as a gift, but if you want to do so, make sure that person’s name and contact information is on the ticket when you purchase it.
Q: What happens if not enough tickets are sold?
A: If fewer than the minimum amount of tickets are sold, then the drawing will be held as scheduled and The Grand Prize winner will be awarded a cash prize equal to 50% of the proceeds (subject to applicable withholding of required taxes).
Q: What happens if you don’t sell enough tickets for the raffle?
A: If we sell fewer than required tickets, the house raffle will revert to a 50/50 cash drawing. The Grand Prize winner will receive one half of the proceeds of the Raffle and the Charity the other half. For example, if the net proceeds are $700,000, the Grand Prize winner would receive $350,000.
Q: If my name is drawn and I win a prize in the Early Bird Drawing, do I have to buy another ticket to be eligible for the Grand Prize drawing?
A: No. If your name is chosen and you win an Early Bird prize, your name goes back into the Raffle. You are still eligible to win all subsequent prize drawing as well as the Grand Prize.
Q: If I buy a ticket and decide I don’t want to be in the drawing, can I get a refund?
A: Sorry, once payment has been received, all ticket sales are final.
Q: When do you hold the drawings? Where will it be? Can I attend?
A: All ticket buyers are welcomed and encouraged to attend all drawings.
Home owners
Q: How do I raffle my home?
A: An individual cannot raffle his or her home, but a qualified 501 (c)(3) can in most states. The best place to check first would be your State and Local laws (call City Hall) to find out what is permitted in your area.
Q: How much can I receive for my house?
A: This depends on the value of your home and your outstanding financial obligations on the home.
Q: How much money will I receive at the conclusion of a successful raffle?
A: As a homeowner, you will receive the appraised value of your home at the time of the drawing. As a non-profit, you will get 100% of the proceeds.
Q: If I win, do I have to live in the home or can I immediately sell it?
A: There is no requirement for the winner to occupy the home. It will be yours Free and Clear to do with it what you wish.
Q: If I win the house, does it cost me anything to get it?
A: Not if you purchase a raffle ticket for a house raffle coordinated by RaffleAHouse.Com, it does not cost you anything to take possession of the home. This is one of the benefits of using our site, we pay the winner’s capital gain taxes (prize taxes). Most other house raffles sites do not cover the taxes and the winner is responsible for their own prize taxes. After you have ownership of the home, you are required to pay property taxes, insurance and maintenance going forward.
Q: What about property taxes or insurance?
A: Yes, if you win the home (Grand Prize), you are required and responsible for paying all property taxes, insurance, maintenance, etc. to keep your home. These amounts will vary based on your home value, location, age, etc. We strongly recommend that you maintain amply insurance on your property at all times.
Q: If I win the house, is it reported to the state and the IRS? Do I have to claim it on my income taxes?
A: Yes. It is required by law for all prizes valued over $5,000 are reported to the IRS and we comply with all laws.
Q: I’m a homeowner and home raffles are illegal in my state. Can a non-profit from another state hold my raffle?
A: We are not lawyers and therefore do not give legal advice. Please consult with a real estate attorney. We advise you to check ALL laws for the area where the non-profit organization operates and where tickets will be sold. Laws vary by country, state/province, and county/district/parish and by city.
Non-Profits
Q: How much money can a charity raise by raffling a house?
A: The charity gets 100% of the proceeds, which depends on how many tickets are sold and the expenses for the house raffle.
Q: Can a nor-profit business or individual run a raffle?
A: No. In the vast majority of cases, raffles must benefit a legally registered non-profit or charitable agency. Contests sponsored by for-profit businesses, an individual or government agency would either be defined as a lottery (if a ticket purchase is required) or a sweepstakes (if no purchase is necessary). There are other laws that govern these two activities. It is important to check ALL laws for the area where your organization operates and where tickets will be sold.
General Questions
Q: This Raffle seems like gambling. Is it legal?
A: Charitable gaming is entirely legal. The law permits charities to conduct raffles within specific rules and guidelines in most states. if you have any concerns contact an attorney or your Attorney General Office.
Q: How do I get started?
A: Simply download, complete and fax or mail in the raffle entry form, or complete and submit the raffle entry form online.
Q: How is the winner chosen?
A: Winners will be determined by random drawings. The names will be made available to the media and will be posted on the website. If the winner of any prize is not present at the drawing, the prize recipient will be notified by phone and email on the day of the drawing. The winner’s names will also be given to the media and posted on our official house raffle web site www.raffleahouse.com for advertisement and promotional purposes. The public is invited to attend the drawings.
Q: Where will the drawing be held?
A: Every raffle drawing is held at either the house that is being raffled or our office by a certified accountant. Please check the details of the specific drawing you entered.
Q: How do I redeem my prize?
A: Every winner is contacted within 24 hours of the drawing and full instructions provided for redemption.
Q: Do I have to be present to win?
A: No. We will contact the winner by email and telephone. Plus post it on our website.
Q: How will I be notified of winning?
A: You will be contacted via phone and email the day of the drawing. Plus we will list your name on www.raffleahouse.com/winners.
Q: If I win, how long take before I receive my prize?
A: The house will be transferred within 60 days of the drawing. All cash and merchandise prizes will be awarded within 10 business days.
Q: Can my raffle ticket be used as a tax deduction?
A: No. The IRS has taken the position that amounts paid for chances to participate in raffles, lotteries or similar programs are not tax deductible. Please consult with a CPA for additional information.
Q: What about income tax?
A: With traditional house raffles, the winner is responsible for the all the taxes on the prize. However, by using RaffleAHouse.Com, the income taxes are paid for through our resources. The winner has the option of living in the house, renting it or selling it and once they take possession all taxes going forward is their sole responsibility.
Q: Is the furniture included?
A: No, the winner will receive the property unfurnished.
Q: How long does a house raffle take?
A: Usually between 90-120 days before the Grand Prize drawing is held.
Q: If I win the Grand Prize and decide to take the money instead, do you report it to the state and to the IRS? Do I have to report it on my taxes?
A: Yes. The law requires withholding of supplemental taxes on the cash prize. We will withhold approximately 25% of any cash award of $5,000 or more, and report that to the state and to the IRS. Please consult with your CPA.
Q: If I win other cash prizes, do you withhold taxes and report my winning to the state and IRS?
A: Yes. The law requires withholding of taxes on all prizes of $5,000 and above.
Q: Is my credit card number secure?
A: Yes. All credit card and personal information collected as part of the ticket purchase process are maintained using secure methods, which includes a secure website.
Q: How will I know that my credit card payment went through?
A: You will receive an email confirmation within a few minutes after your purchase has been successfully processed letting you know that your payment has been accepted.
Q: Can I see the names of prize winners?
A: Yes. Names of all prize winners will be on our website at www.raffleahouse.com/winners.
Q: Will the raffle be audited?
A: Yes. All our house raffles are independently audited by a CPA firm.