No, you generally cannot write off 50/50 raffle tickets as a tax-deductible charitable contribution. Even when purchased from a qualifying charitable organization, the cost of raffle tickets, including those for 50/50 raffles, is typically not tax-deductible under IRS laws.
Understanding Tax Deductibility for Raffle Tickets
Many taxpayers are surprised to learn that payments made for raffle tickets are usually not considered tax-deductible. The reason for this stems from the nature of the transaction:
- Benefit Received: When you purchase a raffle ticket, you receive something in return – the chance to win a prize. This "quid pro quo" (something for something) means the payment is not a pure charitable contribution.
- Not a Pure Donation: For a contribution to be tax-deductible, it must generally be a gift made with no expectation of return benefit. Since a raffle ticket offers the potential for financial gain (winning the raffle), it disqualifies the payment as a fully deductible donation.
Therefore, whether you win or lose, the money spent on a 50/50 raffle ticket is not eligible for a charitable deduction on your federal income taxes. This principle applies regardless of how much of the ticket price goes to the charity or whether the charity is otherwise legitimate.
Key Considerations for Charitable Contributions
To qualify as a tax-deductible charitable contribution, a donation must meet specific criteria set by the IRS. The key distinction often lies in whether the donor receives goods or services in exchange for their payment.
- Pure Contributions: Cash donations or gifts of property made with no goods or services received in return are generally fully deductible, provided they are made to a qualified charitable organization.
- Contributions with Benefits: If you receive something in return for your donation (e.g., event tickets, merchandise, or a chance to win a prize), you can typically only deduct the amount that exceeds the fair market value of the goods or services received. In the case of raffle tickets, the "fair market value" of the chance to win is considered to be the ticket price itself, leaving no deductible amount.
Navigating Charitable Contributions and Tax Deductions
To clarify what is typically deductible and what is not in the context of charitable giving, consider the following:
| Type of Payment or Activity | Generally Tax Deductible? | Explanation |
|---|---|---|
| Pure Cash Donations | Yes | When given to a qualified charity with no goods or services received in return. |
| Volunteer Out-of-Pocket Expenses | Yes | Unreimbursed expenses incurred directly while performing services for a qualified charity (e.g., mileage, supplies). |
| Raffle Tickets (e.g., 50/50 Raffles) | No | The chance to win a prize is considered a benefit, meaning the payment is not solely a charitable gift. |
| Charity Auction Purchases | Potentially | Only the amount paid above the fair market value of the item purchased. If you buy an item for its market value or less, there is no deductible portion. |
| Tickets to Charity Galas/Events | Potentially | Only the amount that exceeds the fair market value of the benefits received (e.g., cost of meal, entertainment). The charity should specify the deductible portion on your receipt. |
While purchasing 50/50 raffle tickets is a great way to support a cause, it's important to understand that your payment is not eligible for a tax write-off. For tax-deductible donations, focus on direct monetary contributions or gifts of property where you receive no significant personal benefit in return.
