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Fundraising for an individual?
03-25-2014, 12:21 AM
Post: #1
Fundraising for an individual?
A friend of mine's daughter was diagnosed with ALS last July. The day after Christmas she was put on hospice. I wrote a letter to a celebrity asking for help as the medical exspenses have taken over and her daughter is also a single mom. I posted the letter on facebook. Since then there has been a facebook page dedicated to my friend's daughter. Everyone wanted to help donate. So we are having a "variety show" at a local bar and charging $10 at the door to get in. Is there any leagle situation we need to be aware of? We realize that for individuals the donations are NOT tax deductible and everyone wanting to attend has been made aware. Will my friend's daughter need to claim the money on her taxes? Also is it leagle to do a 50/50 raffle at the event? The event will take place in Missouri. Any and all information will be helpful.

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03-25-2014, 12:31 AM
Post: #2
 
The state can tell you the legal requirements for running a raffle. Don't do it until you know them.

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03-25-2014, 12:35 AM
Post: #3
 
Raffles unless held by a registered and irs tax exempt charity is considered gambling and is illegal for individuals. And remember any and all money "raised" at the event is taxable as income to the individual.

Get together with a registered charity organization or religious institituion and you could get a much better deal on the donations.
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