In 1992 Colorado: IRS regards raffles as gambling. Gambling losses are only deductible to the extent that they offset winnings.  So NO. Anyone contemplating a raffle will need to check with their state/local regulators to see how to proceed. You will need to follow the rules to a T and keep scrupulous track of the tickets and their sales.

This information is provided by the poster who is not a tax lawyer or any other sort of attorney. It should in no way be construed as reflecting the position of her employer.
 
>>> [log in to unmask] 02/18/04 03:21PM >>>
From: http://www.nonprofits.org/npofaq/11/06.html 

"The fair market value of the purchaser's chance to win a prize is equal to
the price of the ticket. Hence there is no donation, only a purchase."

I can see where the cost to enter a raffle is, say, $10 but donors also
have the opportunity to make a $90 donation. So the correct answer is
probably, "consult a tax attorney."

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Andrew Schuricht
Consultant, Las Vegas Springs Preserve Project

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