Of Raffles, Donations, & Auctions

[SteveColes]

Many of you asked how the raffle is doing? Very well:eusa_danc Before I get into the figures, I would like to explain a few things.

It is important to note that I had already decided to hold a "Donation Drive" once a quarter. The first of the formal drives was to take place in the month of January.

When it was suggested that we raffle the Kreg's generous donation, I felt that people who bought tickets would consider their tickets their donation. So instead of the raffle producing additional income, it just would substitute one kind of donation for another. Well, only the results of the donation drive will tell the whole story.

Because the user base preferred a raffle for the Kreg donation. We went that way. At this point, I would be able to say, I told you so.:slap: :tinysmile_tongue_t:My calculations said that at best we would make $500 , but probably indirectly lose a $1000, because of the feeling that those who bought tickets woul have already donated.

Anyway, here are some basic facts, in order for the North Carolina Woodworker, Inc. to continue operating the way it has in the past, we must raise $8000/year or $2000/qtr or $667/ month. We have to be able to do that without my $500/ month starting July 10, 2009 (the 4th anniversary of the website and the approx. 1st anniversary of the corporation.)

33% of all funds raised must be by public donation in order to maintain a 501c3 status. We are also running ads to raise money, but it is too early to tell how much we can really depend on that to raise significant amounts of capital. I'll make a report on that later in the week.

We received as a donation from junquecol a brand new PC 690LR router, which as just been listed in our classifieds as an auction

So here is the bottom line. I am starting the 1st Qtr Donation Drive a few days early. Please donate.

Also, here is the status on the raffle. I guesstimated we would clear about $500 on the router table, well I was a bit off. As of about 9 AM, we have sold 306 tickets for a gross of $1530 and net of $1450.62 :elvis: :elvis: :elvis: :swoon: :swoon: :swoon:

OK, so I was just a bit off :rotflm: :rotflm: :rotflm:

Now, here is your chance to prove me wrong AGAIN.:help: Donate :help:and prove that we didn't lose any donations by going with the raffle.:gar-La;:gar-La;:gar-La;:gar-La;

 

[RayH]

Steve,

Some time ago I believe you noted that you expected donations to become tax deductable around the end of the year. Has that happened? Are donations now (and back to the beginning) tax deductable?:eusa_thin

Thanks,
Ray

 

[SteveColes]

Steve,

Some time ago I believe you noted that you expected donations to become tax deductable around the end of the year. Has that happened? Are donations now (and back to the beginning) tax deductable?:eusa_thin

Thanks,
Ray

That's a complicated question. The State Of NC says we are a non-profit. But we have nothing yet from the irs. Part of the reason we do not a preliinary determination, is because we have not yet filed. The reasons are somewhat complex. But the bottom line is that our accountant recommended that we do not until have we restated our by laws. The wording of our by-laws could mean the IRS might levy excise taxes on things such as advertising revenues and some other things. The accountant highly recommened that our by-laws be re-worded to better reflect the relationship between the web site and the corporation. Also, since we are changing the rules of corporate membership, these should be spelled out in the by-laws as well before filing for 501c3 status.

Work on the by laws stopped becuase of the holiday season and other high priority projects. But now I will have time to actually do the rest of the work and then hopefully get them passed by the Board.

there is very little doubt that we will get 501c3 status. All donations from from July 12 would then be at least retroactively deductible.
However, I am not an accountant or a tax lawyer, therefore I can not give any real advice. I suggest that you refer this question to your tax accountant or professional. Please feel free to PM me and I will be glad to send you our EIN ,

 

[Travis Porter]

I have no issues contributing, but I need the tax deductions as well. I am my own tax accountant/tax professional, so saying to check with X really doesn't help me. To me, until there is a ruling from the IRS, it isn't tax deductible at least from the federal standpoint.

 

[Mark Stewart]

Ok steve I have to ask how do we donate? This will be my first time so be gentle with me>:gar-La;

 

[PChristy]

Mark - click on one of the blue donation links in Steves first post above and it will take you to the donation screen and then read what is there and click on the donation button - then fill out all of the info

 

[DaveO]

Or go to the top menu and you will see a link to where you can donate. Thanks to Bas it should be very obvious :icon_thum
Dave

 

[McRabbet]

I purchased 5 raffle tickets last week and today got a chance to see the Kreg Router Table at the Woodcraft Store in Matthews (we were in Charlotte for the weekend). It is a very nice unit and everyone should take a chance on it even though I (hope) I have the winning ticket! Every raffle ticket will bring in more revenue for the website and the winner is going to be one happy dude (or dudette!).

And in the FWIW department, I plan to continue to make donations in the new year and trust all of you will join in that effort -- small or large, every bit helps and any amount is modest compared to what we all gain from this great resource.

 

[SteveColes]

I have no issues contributing, but I need the tax deductions as well. I am my own tax accountant/tax professional, so saying to check with X really doesn't help me. To me, until there is a ruling from the IRS, it isn't tax deductible at least from the federal standpoint.

Travis, I have to make the standard "your mileage may vary" disclaimer. Believe it or not, there are accountants who will tell you to take the deduction and others who would say no. Rather than potentially getting in the middle of that debate:no:, i chose to put it in the "standard" form.:gar-La;

Anyway, I certainly would keep track of my donations to the site after July 16, 2008. We will announce immediately, once we get a status determination from the IRS.

 

[SteveColes]

I'm surprised no one has said a word about the amount of money raised by the raffle.:eusa_clap:eusa_clap:eusa_clap:eusa_clap

 

[DaveO]

I was going to say something but I wasn't hesitant on gloating on your wrong-ness. I knew the raffle would be the best way to go and with the low ticket price more members would participate...but what do I know :wwink:
Now I am just waiting for the drawing to pull my ticket, and a nice lunch with some friends :icon_thum


Dave

 

[junquecol]

If these are the same friends as in the free table saw drawing, will you be serving Dog Chow?:rotflm: Just too good to pass up. Maybe we could donate a dime per post. Now lets see who is the top poster? Yes, I know I'm rotten! Bruce

 

[Bas]

I'm surprised no one has said a word about the amount of money raised by the raffle.:eusa_clap:eusa_clap:eusa_clap:eusa_clap

That's probably because most of us have WGD really bad and aren't surprised people are lining up to win that router table :rolf:

But yeah, it's a pretty nice sum - and it's not even January yet!

 

[DaveO]

If these are the same friends as in the free table saw drawing, will you be serving Dog Chow?:rotflm: Just too good to pass up. Maybe we could donate a dime per post. Now lets see who is the top poster? Yes, I know I'm rotten! Bruce

Yep that would be too sweet, I don't count on my luck ruuning that far. I have come close to donating .01 per post yearly , but .10 is much too great for my budget...I'm a landscaper, what's the first thing to go out of the budget when things get tight :thumbs_do


Dave

 

[Travis Porter]

You have a point. Some accountants/CPA's will have you show everything and then let the IRS question/contest it, whereas others play it safe. Either can be right and either can be wrong.

I am chicken. I am the play it safe type.

 

[CarvedTones]

I'm surprised no one has said a word about the amount of money raised by the raffle.:eusa_clap:eusa_clap:eusa_clap:eusa_clap

Makes you wonder if it would continue to be as successful if there were raffles every month. This one is so successful that it would make money even if you paid retail. It's unlikely that you will get free items to raffle every month, but I bet the vendors would be plenty happy to offer substantial discounts.

 

[Mark Stewart]

Steve you have under estimated your fellow woodworkers I think this is a fine some of money but I thjink we can do better than this wait till the end asd lets see how much we get I am hopeing for the 2 k mark my self ( but dont tell the others I already have bought the winning ticket especilay Daveo)

Thanks Mark

 

[JackLeg]

Steve, you and the other "inventors" of this site have been more than generous with your time and money. And I know that in the past you have stated a reluctance to have a "dues" paying membership.

BUT, the reality of keeping NCWW stable and fiscally sound has fast set in. There is "X" amount of money needed to finance the site, right? We have over 2200 "members" who visit from time to time, some much more than others. "DQ" is nice, but most of us can find 10% off on stuff on the internet on a day to day basis. Soooo---

I believe that sooner or later we will need to set a minimum amount of "dues," participation fee, joining fee, maintenance fee, or whatever you want to call it. If we had 400 "dues paying members," for a reasonable amount of money annually, you could reduce the amount of Zantac you are taking and know that what you've started will be perpetuated.

Auctions and raffles could supplement the kitty and assist with other things the site might want to do.

And now, like Forest Gump, "that's all I have to say about that."

:wsmile:

 

[CarvedTones]

Unfortunately, paid membership requirements are a major cause of site failures. Some sites seem to do okay with having levels of membership. If you sent an email to all 2200 members requesting dues to continue, I would be surprised if 400 complied. At the risk of angering some folks, I know there are a lot of people scratching their heads and wondering why so many forums with ads are free and this one operates so far in the red.

I really like the raffle.

 

[FredP]

funny how stuff changes. a year or two ago I would have said "dues are fine. how much?" but with the economy what it is today I would have to say no. work is scarce and layoffs are many so like many others I'm sure there simply isnt enough budget for extras. as this site is a business of sorts I understand that the operating costs are there same as my business. the outgoing hasnt dropped a bit but the incoming has been cut by more than half. So contrary to what I may have said a while back my answers would be much different now. I can understand going to a dues paying site but if it were to hapen now I would have to drop off untill economic factors turned around. I'm pretty sure we would lose many more too. lets all just cross our fingers and hope for a turnaround in the next year!