How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Zachary Your Own Question

Zachary
Zachary, Attorney
Category: Legal
Satisfied Customers: 4006
Experience:  Lead trial/International commercial attorney licensed 11 yrs
17219180
Type Your Legal Question Here...
Zachary is online now
A new question is answered every 9 seconds

Our non-profit (501c3) wants to conduct a car raffle. Our

Resolved Question:

Our non-profit (501c3) wants to conduct a car raffle. Our organization is based in Colorado but we want to sell tickets in multiple states. We want to ensure that we comply with all laws and regulations. Where can find information on how to conduct properly? Thank you!
Submitted: 1 year ago.
Category: Legal
Expert:  Zachary replied 1 year ago.
Hi,

Thank you for your question.

Instead of approaching the raffle from the position of trying to make it comply with the laws of every state in which you are selling the tickets, you should instead sell the tickets under the condition that Colorado law applies (as that is the state where the charity is located). You would simply write this as a term and condition on your ticket.

To determine the rules regarding this sort of raffle in Colorado, you will need to look at the rules published by the Colorado Secretary of State at: http://www.sos.state.co.us/pubs/bingo_raffles/files/GMLAW.pdf

Please let me know if you have further question. Please also kindly consider rating my answer positively so that I am compensated by the website for my work on your question. Rating does not cause an additional charge and will not prevent us from further discussing your questions.

Best Regards,
ZDN
Customer: replied 1 year ago.

ZDN,


 


I read the CO rules regarding the raffle of a car and like your approach of putting "CO law applies" in terms and conditions on ticket.


 


I didn't see in the CO regulations any information on responsibility for taxes, if any, for state or federal. Where can I find the requirements for tax compliance or is this the responsibility of the winner?


 


Thank you.

Expert:  Zachary replied 1 year ago.
Thank you for you response.

On the federal, consult the following: http://www.irs.gov/pub/irs-tege/notice_1340.pdf

Your raffle ticket should also make it a condition that the winner is responsible for any and all federal and state taxes. The ticket should also state that the taxes must be paid up front before you turn over the keys to the vehicle.

The transfer of the property will be taxed upon the value of the vehicle since it is a "prize".

There is not a single source which you can consult regarding this specific issue. However, here are some sources that are helpful:
http://www.denvergov.org/Portals/571/documents/TaxGuide/Fund%20Raising.htm
http://www.colorado.gov/cs/Satellite/Revenue/REVX/118785802 7474
http://www.springsgov.com/units/salestax/Tax%20Guides/Ag-fund.pdf
http://www.bouldercolorado.gov/index.php?option=com_content&task=view&id=3187&Itemid=1490

In the end, when you make it the winner's issue, you simply will keep the car until the taxes are paid by the winner.

-ZDN
Zachary, Attorney
Category: Legal
Satisfied Customers: 4006
Experience: Lead trial/International commercial attorney licensed 11 yrs
Zachary and 3 other Legal Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it. Lee Michigan
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    8436
    JD, BBA Over 25 years legal and business experience.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    8436
    JD, BBA Over 25 years legal and business experience.
  • http://ww2.justanswer.com/uploads/RA/ratioscripta/2012-6-13_2955_foto3.64x64.jpg Ely's Avatar

    Ely

    Counselor at Law

    Satisfied Customers:

    19941
    Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    8189
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/jespoag/2008-12-17_222355_jessepic.jpg JPEsq's Avatar

    JPEsq

    Attorney

    Satisfied Customers:

    2132
    Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor
  • http://ww2.justanswer.com/uploads/gsenmartin/2008-04-22_214950_me1.jpg Guillermo J. Senmartin, Esq.'s Avatar

    Guillermo J. Senmartin, Esq.

    Attorney

    Satisfied Customers:

    110
    7+ years of experience handling various legal matters.
  • http://ww2.justanswer.com/uploads/PA/PaulmoJD/2013-10-10_195858_JAImage.64x64.jpg Law Educator, Esq.'s Avatar

    Law Educator, Esq.

    Attorney

    Satisfied Customers:

    31621
    JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    15975
    Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.