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In KS we get around it by having "donation of " on the ticket--if someone requests one for free we do give one (only one). KS finally realized that most groups doing raffles are doing so for charity so they've eased the rules some too.

Our Guild makes anywhere from $800-1200 on yearly opportunity quilts--but that is selling tickets for about 8-10 months not just a one event thing. We do better with silent auctions if it's a one event effort.

I know my guild ran into the same situation with raffles. You either do it the way they want you to or pay a fine.

In MO you need a license or something (I wasn't on the quilt show committee, so IDK exactly) however, in the 2 guilds I belonged to we got around that by not having a raffle quilt - instead it was called an 'opportunity quilt' - I do not understand the difference because you still bought 6 chances for $5. And we didn't have to charge sales tax on the stuff we sold in our boutique. I think we made close to $500 off the quilt alone - and we are in a small town(s).

Quote:

Originally Posted by Battle Axe (Post 8315650)

1. has anyone else run into this problem? Yes, I used to work for a business that did the occasional raffle. Not only do you have to get the necessary licensing and permits, you also have to pay a portion of the proceeds to the state.

2. how much did your group make raffling off a donated quilt? NA for my situation, we weren't raffling quilts. I will say a lot of it will depend on the participation. 2000 tickets at $10 is a lot more than 200 tickets at $10.

3. we can have an auction without all the political paperwork, would you suggest that? I'm confused by this, what do you mean "political paperwork"?

4. advice in general and your thoughts please.

I agree with the others that auctioning quilts is often a waste, because they usually go for less than what the cost of the fabric was. I've often wondered if it would make a difference to have the quilt appraised and the value posted where everyone can see.

A guild member is a tax lawyer so we have donations starting at $5 and with each $5 donation you get a raffle ticket as a thank you for the donation. No tax credit is given to the donor. Call the AG office in your state and ask. Lots of ways to get out of the rigmarole just by renaming the raffle.