Accounting Tips to Keep In Mind:
The Family Member Factor: What happens if an employee’s spouse or child wins the big TV? Standard corporate tax logic generally attributes the value of a prize won by a family member right back to the employee’s compensation. So, whether the employee or their plus-one holds the winning ticket, keeping a clean log of the winning family is still the best practice.
The “Total Pool” vs. Individual Item Myth: A common misconception is that you can bypass tracking individual high-value items if your total raffle budget stays under a certain aggregate limit. In reality, standard guidelines look at the fair market value of each individual item handed out, rather than the grand total across the board. So if you give out ten premium grills, each one counts on its own!
How Are They Getting That Home? Pro Tip: Talk to us about arranging direct-to-home delivery for your heaviest prizes! Display a picture or a prototype of the big-ticket item at the raffle booth, and let us handle shipping the actual prize straight to the winner’s doorstep after the event.