Sorry, we were out of town longer than expected.
In response to your question: We will donate all money with exception of direct expenses related to vehicle i.e. we had to pay it off to get title. It needed to be serviced, including a new battery, and costs to register and insure also added to the bill. We may have some costs to raffle, such as establishing a website, postal address, etc.
Beyond that yes, all proceeds will be donated.
Actually I paid the vehicle off several years ago. It was in danger of repossession. It was also impounded. Any costs incurred were simply to make the vehicle street worthy after several years in storage.
Hmmm! Maybe more complicated than I first thought. The names on the vehicle belong to my wife and my son, who is an adult. When I say "I" that's me orchestrating the situation. My wife will actually be signing off on the title. Our son does not need the vehicle any longer, but he does need the value which a raffle could bring. After the expensed I previously described my wife will be donating all the proceeds to a charitable trust.
I don't know if that makes things better or worse. I hope it answers your question.
You answered part of my question and I will research the CA attorney general's article for more information.
Just for reference, my son did not pay off anything. However, my wife and I did. I would assume that as both their names are XXXXX XXXXX title neither is entitled to recover the sums required to pay off the contract. Ergo, as CA is a community property state, I am not entitled to the sums either?
Part two of the original question. Would it be more or less difficult to do this in Nevada? Do the rules and/or laws in Nevada regarding rafflle differ from California?
1. Compensate any person for the provision of prizes and supplies used in the operation of a charitable lottery, except to pay the fair market value of the prizes and supplies necessary for the operation of the charitable lottery.
(a) Any compensation to a person who is not a regular employee of the organization; and
(b) Any additional compensation to a person who is a regular employee of the organization,
Ê for his or her services in organizing or operating a charitable lottery or assisting in the organization or operation of a charitable lottery. This subsection does not prohibit a qualified organization from compensating a person for the fair market value of services that are ancillary to the organization or operation of a charitable lottery.
(Added to NRS by 1991, 2260)
NRS 462.200 Limitation on expenditure of net proceeds of charitable lottery; annual financial report required.
1. A qualified organization shall expend the net proceeds of a charitable lottery only for the benefit of charitable or nonprofit activities in this state.
2. A qualified organization approved by the Executive Director shall, after the completion of a charitable lottery and no later than the end of the same calendar year, submit to the Executive Director a financial report on the charitable lottery. The financial report must include a statement of:
(a) The expenses incurred in the operation of the charitable lottery; and
(b) The amount and use of the net proceeds of the charitable lottery.
(Added to NRS by 1991, 2261)
You need to get this conscept behind you.
I am not proposing to conduct a raffle for the purpose of personal gain. I simply asked if I could recover my costs of preserving the asset. Apparently I cannot do that directly. However it does appear that I can take a tax deduction to a charitable entity for the full value of the vehicle.
The charitable entity can use the raffle to unlock the potential value which I believe to be many times greater than its appraised value.
If it is true that I can take the tax deduction then I will review the appropriate sections of CA and NV law and dedide which state, if either should be used to domicile the charitable entity.
David, respectfully, XXXXX XXXXX stated "with exception of direct expenses related to vehicle i.e. we had to pay it off to get title. It needed to be serviced, including a new battery, and costs to register and insure also added to the bill. We may have some costs to raffle, such as establishing a website, postal address, etc" and "Our son does not need the vehicle any longer, but he does need the value which a raffle could bring." it would appear that the primary purpose of the raffle is to recoup expenses (as you defined the term) as the expenses would be paid first and the remainder, if anything, given to charity.
Regarding the tax deduction, I would be doing you a disservice to answer unequivocally that you can take the tax deduction as I do not have enough information on your tax situation to do so. I can state that generally persons whom donate a vehicle to charity can take a tax deduction for the full value of the vehicle.
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