Quote:
Originally Posted by Locke
Exactly. The person who wins would have to win the cash from the raffle and then donate it to the charity. From a tax perspective, that should work as the winnings would be tax-free and then its the winner's money to do with as they please, and should they donate it to charity they would receive the receipt for their donation.
Obviously it would be implied but unenforceable that they should donate the cash.
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To be tax-free, it would have to be a licenced raffle. Othewise, its no different than the office hockey pool which is also theoretically but illegally tax free.
As I said earlier in this thread, the company could retain control of the situation by generating a third party cheque in the name of the winner and the name of the charity.
Both have to counter-sign for the cheque to be cashed, creating a situation of a free offer and free acceptance. Meanwhile, the company would discharge its obligation to ensure the money goes to charity or that it doesn't leave its hands.
The company might not want to do this because it would be an unlicenced raffle and the winner might complain about not getting the money unencumbered.
Its definitely a situation that requires an Alberta Liquour & Gaming Lottery Licence for Raffles under $10,000 to be fully legal.
However, I don't think AGLC would permit a third party cheque as a prize unless there was another prize or two from which the winner could select as an option.
Cowperson
