Michigan State University colleges/departments/units/organizations may wish to sponsor a charitable gaming event (e.g., raffle or bingo). If a planned event is not a raffle, please contact the University Tax Manager (355-5029) for guidance.
Those wishing to hold a raffle as a fundraiser must address the following requirements:
- State Requirements
- Please carefully review the State of Michigan’s raffle information and rules.
- After reviewing the rules, it is likely you will need to complete the Michigan Lottery's Raffle License Application (also located at the Raffle web site). The application requires the President of MSU's signature (the State will reject the application if the proper signature is not included). On the form for item 7, please fill in the President's name and address. If this is the first raffle license you are applying for, use "112301" as MSU's organizational number in item 2. To route your application for the required signature, complete the MSU Raffle Cover Letter and route as instructed. Allow a minimum of 6 weeks for the State to process the application once proper MSU signature is obtained.
- If the total value of all prizes awarded in one day is $500 or less, you will be holding a "small raffle" and you will only need to complete the Raffle License Application to obtain a license. After you hold your raffle, there are no further reporting requirements, although the raffle rules may have certain record keeping requirements.
- If the total value of all prizes awarded in one day is more than $500, you will need to obtain a license and also complete a State of Michigan Raffle Financial Statement after the raffle takes place. The State will send the required financial statement forms to you after the date of the raffle (blank Raffle Financial Statement forms are also available at the Raffle web site). You have until the 10th day of the month following the month that the licensed raffle took place to complete and return the financial statement to the State. Similar to the license application, the Raffle Financial Statement form requires MSU executive signature (the State will reject the form if the proper signature is not included). To route your form for the required signature, complete the MSU Raffle Cover Letter and route as instructed.
- Federal Requirements – If a prize is valued at $600 or more, and the prize value is more than 300 times the wager (ticket price), certain Internal Revenue Service (IRS) requirements must be followed. Please contact Accounting, 355-5000, if you will be awarding a prize worth $600 or more to arrange logistics of Federal tax reporting, including:
- When the prize is awarded, you must obtain a Form W-9 from the prize winner along with the winner’s driver’s license number and the state that the license was issued. This information is used to report game winnings to the IRS.
- If the prize is $5,000 or more, MSU may be required to collect withholding tax from the prize winner. Generally, the withholding rates are 28% with a completed W-9 (38.88% for certain non-cash payments) or 31% if the W-9 is not completed.
- University Requirements – If any of the raffle prizes were donated they will need to be reported to University Development, Jill Ostrander ostrand1@msu.edu or 884-1028. University Development will require a Raffle Prize Donation Form be completed for each prize donated. University Development uses this information to formally acknowledge gifts to the donor if it meets certain requirements. The prize information also needs to be sent to the University Tax Manager (355-5029) if over $600 for tax reporting to the winner(s) of the raffle.
Please contact the University Tax Manager (355-5029) with any raffle/charitable gaming questions.