Be careful, raffles are illegal in some states so do a little research first.

I would hate to see your quilt go for $100.00. That would be a shame.

sounds like there are two branches to this communication. I understood your question to be how much to value the quilt at for raffle purposes...I was told a few years ago that charging $15/square foot is a starting point for charging for custom quilts. That should help you in that area...you can raise the price if the fabric was extra expensive, the quilting was really detailed, etc.

I agree with the other poster who suggested that a raffle would raise more money than an auction...I donate quilts annually to raise funds for a scholarship fund and lots of people will pay ten or twenty dollars to have a chance to win the quilt, but few will offer to pay the full price for the quilt...a 48 by 48 lap/wall quilt would be worth $240 by above formula but most folks wouldn't go that high unless it's a very unique quilt, in which case, it probably would have been priced higher...

I'm not an expert on raffles, but I was involved in quite a few when I worked in California, for our professional organization. Because a raffle was considered gambling, we were not allowed to do it. However, if it is set up as a donation to win something, it was acceptable. Of course, that can mean that someone can come up and fill out an entry form (or ticket) without paying money, because it is a donation. We rarely, if at all, ever had anyone not give the suggested donation amount. It was always for a good cause. Things may have changed as I haven't been involved in that for around 5-8 years.

Silent auctions do not bring as much per item as a live auction. At least that has been my experience working my kid's school's auction project every year for the past four years. Is there a live auction at this event?

Thanks so much for all your wonderful comments and suggestions. I too am new at this and didn't know exactly where to start. I will follow up on the Tennessee laws regarding raffles or selling chances on an item. I think $10 is a reasonable amount to charge on a chance to win a quilt ... or whatever we can call it under the TN law. Do you think $10 is ok?

At our school raffle, we charged something like $1 for one ticket, $5 for 6 tickets, and $10 for 12 tickets. I think you will miss out on a lot of tickets if you charge $10 per ticket; many people won't want to take a chance with that amount of money.

your decision should be based on the income of the folks who attend. Some groups can easily use the $10 per ticket, others the $1 and still others...tho not any I'm in...can do $100...so it's your call.

I agree that you should have a "Discount" price...spend more and get an extra ticket..

When you are the artist, you can only claim the cost basis as the gift. Thus, only the value of the materials. Your time is not a deductable gift. When you give an item made by someone else you can deduct the FMV. IRS form 8283.

When you are the artist, you can only claim the cost basis as the gift. Thus, only the value of the materials. Your time is not a deductable gift. When you give an item made by someone else you can deduct the FMV. IRS form 8283.[/quote]

FMV does not deal with time. FMV means "An exchange price that a willing and well-informed buyer and seller would reach through negotiation under current market conditions."

If you are a music artist, you cannot deduct the time you donate for a benefit concert. When you donate a quilt, you cannot say, "I spent 60 hours on this so I can tack on another $240 for my time", but you CAN deduct what the quilt is worth if sold at "FMV". It doesn't matter who created the item, if FMV is $500, you can deduct that amount, but not add on anything for time.