I was just reading IRS Notice 1340 -- Tax-Exempt Organizations and Raffle Prizes -
Reporting Requirements and Federal Income Tax Withholding
"Generally, an exempt organization must report raffle prizes if (a) the amount paid reduced, at the exempt organization’s option, by the wager (the amount a person paid for the chance to win a prize), is $600 or more; and (b) the payout is at least 300 times the amount of the wager. The organization uses Form W-2G for this report.
We are not currently offering items that cost more than $200. Most are in the $50 to $100 range. So it appears that we don't have to report those donations. However, if we grow our donor base dramatically, we might occasionally offer an item that runs about $1500, and I see we would need to report that.
Am I interpreting that correctly?
