Let’s say that your Non-Profit has been trying to raise money for a long time to help out your community. Over the past year, you have done everything possible; bake sales, talent shows, a silent auction and you were even able to get a few local businesses to donate to your organization. However, even through all these sources, you still were not able to meet this year’s fundraising goal.
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What if someone offers you the chance to raffle off their home, which is valued at $400,000? In return, all they want is the appraised value of the home. Your Non-Profit keeps the rest of the proceeds... You agree!
Your organization mobilizes to get the word out sells 8,000 tickets at $100 per ticket. That brings in $800,000 of funds. Your Non-Profit purchases the home from the home owner at the appraised value and then you give the home to the raffle winner.
This process leaves your organization with $400,000. Estimating that your expenses for conducting the raffle were roughly $80,000 (closing costs, legal fees, tickets, radio and television adds, website, online credit card fees and so on), that leaves you with $320,000 profit.
In the space of just a few months you were able create $320,000 worth of fundraising dollars. It all starts here by finding homes that are willing to be raffled in your state.** |
**The above is just a scenario. real returns can only be based on the actual number of tickets sold, value of the home, the expenses incurred and any tax obligations (if any) the Non-Profit is obligated to pay by your state law. An accountant and a lawyer in your state should be contacted. |
