Glitter Fades From Raffle-Prize Gold Jewelry

Consumer Watchdog: George Gombossy

June 22, 2008

"...it's a shame that Raveis did not have up-to-date information on tax laws and that it failed to warn Kieffer that she might owe more in taxes than she could ever receive from selling the jewelry.

The William Raveis Charitable Fund had the best of intentions when it ran its annual raffle last November to raise tens of thousands of dollars for breast cancer research.

So did Ellen Kieffer of West Hartford, who spent $10 in a raffle that gave her a chance to win one of 10 prize packages.

Not surprisingly, Kieffer was thrilled when informed that she had won the second prize, a pair of gold cuff links and a gold ring together valued at $5,600.

But that thrill faded quickly when she learned that if she tried to sell the jewelry she could only get $350 and might end up paying a lot more than that in federal and state taxes.

 "...Uncle Sam ... started cracking down in the last couple of years, demanding documentation and requiring charities to collect federal and state taxes before turning over more expensive gifts to the winners."

   So what do you think? 

  Caveat emptor - when purchasing raffle tickets, or don't claim the prize?

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