DreamCar #1 Audi R8 Raffle Official Rules and Regulations

I. General Information

DreamCatchers™ D.R.E.A.M.S (DCD) is a non-tax-exempt organization and conducting this raffle pursuant to NM regulations to raise funds for ongoing charitable purposes. The Rules and Regulations of the DreamCar raffle are set forth below. By purchasing a raffle ticket, the purchaser agrees to be bound by these rules and regulations. DCD interpretation and application of the rules and regulations shall be final.

The Grand Prize is the following: 1) Audi R8 0r $30,000 cash.

Only 1,500 raffle tickets will be sold. The chances of winning are 1 in 1,500 based on the maximum 1,500 ticket entries.

The Grand Prize Drawing will be conducted by Pioneer Bank Vice President, Kiel Hoffman, located at 705 E. University in Las Cruces, NM and the winning entry will be announced when 1,500 tickets sold on or before February 22, 2024. Tickets will not be sold after ticket number 1,500 purchased.  Our independent raffle auditor, Michael Bock, CPA, of Bock & Associates, El Paso Texas, Click here  will supervise and verify drawing. Our independent legal adviser is >>>>>>>>>>  Click here. Winners need not be present to win a prize in any drawing. All drawings open to public.

If more than one prize is offered, the major prize will be the first one drawn. Then the other prizes drawn in ascending order according to number and value.

The IRS has taken the position that amounts paid for chances in raffles, lotteries or similar drawings for valuable prizes are not gifts, and consequently do not qualify as deductible charitable contributions.

BY ENTERING THIS RAFFLE, ENTRANTS ACCEPT AND AGREE (1) TO BE BOUND BY ALL THE RULES, LIMITATIONS AND RESTRICTIONS SET FORTH HERE; AND (2) THAT THEIR NAMES AND/OR LIKENESSES MAY BE DISCLOSED TO AND USED BY THE NEWS MEDIA AND MAY OTHERWISE BE USED BY DCD’S FOR PUBLICITY PURPOSES AND IN LISTS OF PRIZE WINNERS TO BE PUBLISHED IN NEWSPAPERS AND ANNOUNCED ON DCD’S WEBSITE. OTHER RULES AND REGULATIONS MAY APPLY. PLEASE CONTACT DCD’S IF YOU HAVE ANY QUESTIONS. DCD’S INTERPRETATION AND APPLICATION OF THE RULES AND REGULATIONS SHALL BE FINAL.

BY ENTERING THIS RAFFLE, EACH PARTICIPANT RELEASES DCD, ITS DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS FROM ANY AND ALL LIABILITY FOR INJURIES, LOSSES OR DAMAGES OF ANY KIND CAUSED BY PARTICIPATING IN THE RAFFLE OR WINNING ANY PRIZE OR RESULTING FROM ACCEPTANCE, POSSESSION, USE OR MISUSE OF ANY PRIZE, AND EACH WINNER AGREES TO INDEMNIFY AND HOLD DCD HARMLESS FROM ANY AND ALL LOSSES, DAMAGES, RIGHTS, CLAIMS AND ACTIONS OF ANY KIND ARISING FROM, IN CONNECTION WITH, OR AS A RESULT OF PARTICIPATING IN THE RAFFLE OR THE WINNER’S ACCEPTANCE OR USE OF ANY PRIZE.

FURTHER, EACH PARTICIPANT HEREBY WAIVES THE PROVISIONS OF CIVIL CODE SECTION 1542 WHICH STATES THE FOLLOWING: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR”.

CERTAIN PRIZE WINNERS, INCLUDING BUT NOT LIMITED TO, THE GRAND PRIZE WINNER, WILL BE REQUIRED TO SIGN A WRITTEN AGREEMENT CONFIRMING THE ABOVE-DESCRIBED RELEASE AND WAIVER AS A CONDITION TO RECEIVING SUCH PRIZE(S).

II. Raffle Tickets

Individual, single raffle tickets are $100 each. Only one method of payment, one name, and one mailing address are permitted per raffle ticket (“ticket transaction”). Only one eligible person may be entered in the raffle per ticket transaction. If the name of more than one person is submitted with a ticket transaction, and the raffle ticket or a raffle ticket from the raffle ticket pack is selected as a winning raffle ticket, then the person named first will be deemed the holder of record of that ticket and declared the winner. Division of prize by a group purchasing a raffle ticket in common shall be the sole responsibility of the person named as the holder of record of that raffle ticket, should that raffle ticket be selected as a winner. 

DCD reserves the right to reject any entry form that is submitted with payment that does not constitute “good funds.” All defective or physically altered entry forms will be immediately disqualified by DCD. Prior to the Grand Prize Drawing, DCD will make a reasonable effort to notify any individual who submits a rejected entry form or one which has been rejected because the credit card did not clear. DCD will attempt to make contact through the information provided at the time of submitting the purchase request.

Persons Allowed to Purchase DreamCar #1 Audi R8 Raffle Tickets

 

You must be 18 years old to purchase a raffle ticket. People under age 18 can’t purchase raffle tickets. Nor may persons under 18 years of age be the beneficiary of a ticket purchase.

Ticket purchaser — and beneficiary, if the beneficiary is not the same as the purchaser — must also be citizens of the United States or legal residents thereof and meet eligibility requirements outlined.

DCD assumes no responsibility for lost, late, misdirected or non-delivered packages or fax messages, or any other failure to receive orders or deliver receipts prior to the drawing deadlines.

A RAFFLE PARTICIPANT’S SOLE AND EXCLUSIVE REMEDY FOR A BREACH BY DCD SHALL BE LIMITED TO THE RETURN OF THE PURCHASE PRICE PAID FOR HIS OR HER RAFFLE TICKET(S). IN NO EVENT SHALL DCD, ITS DIRECTORS, OFFICERS, EMPLOYEES, AGENTS OR REPRESENTATIVES BE LIABLE TO ANY PARTY FOR ANY LOSS OR INJURIES TO EARNINGS, PROFITS OR GOODWILL, OR FOR ANY INCIDENTAL, SPECIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES OF ANY PERSON OR ENTITY WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

III. How to Purchase:

An individual can purchase as many single tickets via the website as he or she may wish, subject to availability.

Note that ticket purchases via the website are limited to no more than 20 per order. This restriction is an effort to avoid purchaser error or purchasing decisions without full consideration of cost. Should a purchaser wish to acquire more than 20 tickets, please call us or send us an email as described above. We will be glad to help. Thrilled, actually!

 

Important note: raffle ticket sales are final.

Ticket(s) may be purchased in the following way: Payments made exclusively at DCD Website at dreamsraffle.com.  No refunds will be made except under the following circumstances: a ticket order with payment received after 1,500 raffle tickets have been sold. No other refunds are available except at the exclusive discretion of DCD. DCD assumes no responsibility for lost, late, misdirected or non-delivered messages, or any other failure to receive orders or deliver receipts prior to the drawing deadlines.

IV. Selection of Grand Prize Drawing Winners (5 Winners):

The Grand Prize Winner of the DreamCar #1 Audi R8 Raffle Grand Prize Drawing will be drawn from the 1,500 tickets sold verified by raffle auditor as eligible raffle tickets. The physical location of drawing will be at Pioneer Bank 705 E.University Ave in Las Cruces, New Mexico. Winner need not be present to win. The Grand Prize Drawing will be held under the supervision of an independent raffle auditor, Michael Bock, CPA. The list of all winners for the various drawings described herein and below will be posted on dreamsraffle.com and may also be obtained from DCD by sending a self- addressed, stamped envelope to DCD DreamCar Raffle, to 1210 Country Club Rd. #19, Sunland Park, NM 88008 within 30 days of the drawing.

The Grand Prize Winner will be notified according to the contact information provided to DCD at the time of ticket purchase. If the Winner cannot be located by 5:00 p.m. Mountain Time within 15 days after Grand Prize drawing and after DCD has attempted to contact him or her through the information provided at the time of purchasing the ticket, he or she will be deemed to have selected the alternate cash prize of $30k. Another winner will not be selected for the Grand Prize.

In order to collect his or her prize, a winner may be required to sign and deliver to DCD: (a) a sworn affidavit of eligibility in accordance with these Rules and applicable law, including, without limitation, that he or she is at least 18 years old; (b) such written information as is required by any applicable tax laws, including, without limitation, his or her Social Security Number; and (c) proof of identity in forms satisfactory to the DCD showing that the person claiming the prize is the same person who is named on the winning raffle ticket. The Winner may be required to submit a W-2G, W-9, Form 5754 or similar tax form for tax withholding purposes.

Audi R8 vehicle winner solely responsible for any and all state or local license, title, registration, and fees, and all local, state and federal taxes (including, but not limited to, income taxes and sales taxes based on the value of the car), the winners’ respective financing costs, if applicable, as well as insurance (proof of which must be shown prior to delivery) and pickup or delivery costs at the car location. DCD takes no responsibility for prize winners’ tax liabilities. Consult your tax advisor. This offer is void where prohibited by law, and all federal, state and local laws and regulations apply.

V. Winning Odds:

The odds of winning the Grand Prize are 1 in 1,500.

VI. Eligibility:

The raffle is open to any individual who is 18 years of age or older at the time of ticket purchase. DCD employees, members of the Board, authorized agents and employees thereof, consultants, attorneys, independent accountant firm, and their spouses and children living in the same household are excluded from participating and are not eligible to win a prize. All federal, state, and local laws and regulations apply. The raffle is void where prohibited or restricted by law. An affidavit of eligibility may be required of prize winners.

VIII. Prizes:

Grand Prize Drawing

  • Grand Prize: Audi R8
  • 2nd Prize: $5,000 Cash
  • 3rd Prize: $2,000 Cash

IX. Terms and Conditions:

All prize winners must make a prize selection among their respective prizes choices in writing no later than five business days after the drawing date. If no selection is made by the winner by that deadline, the prize will become the cash alternative.

DCD makes no guarantee that the Internal Revenue Service (IRS) will accept that value of vehicles, vacations, or other prizes for the purpose of determining any income tax that may be due from winners.

Any prize vehicle, if selected, will be transferred to the winner “AS IS, WHERE IS AND WITH ALL FAULTS”. DCD DOES NOT PROVIDE ANY GUARANTEE OR WARRANTY, EXPRESSED OR IMPLIED, IN CONNECTION WITH THE MANUFACTURER AND ACCEPTS NO LIABILITY OR RESPONSIBILITY REGARDING THE CONSTRUCTION OR CONDITION OF THE VEHICLE. NO EXPRESS WARRANTIES ARE GIVEN AND NO AFFIRMATION OF DCD BY WORDS AND/OR ACTIONS WILL CONSTITUTE A WARRANTY.

Cash prizes valued at more than $1,500 are subject to all appropriate and required federal and state taxes to be withheld by DCD in accordance with federal and state law, and DCD will remit the balance of the cash prize to the winner.

ANY CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THE CONTRACT, OR THE BREACH THEREOF, SHALL BE SETTLED BY BINDING ARBITRATION ADMINISTERED BY THE AMERICAN ARBITRATION ASSOCIATION (PURSUANT TO ITS EXPEDITED PROCEDURES) UNDER ITS COMMERCIAL ARBITRATION RULES, AND JUDGMENT ON THE AWARD RENDERED BY THE ARBITRATOR MAY BE ENTERED IN ANY COURT HAVING JURISDICTION THEREOF.

By purchasing a DreamCar #1 Audi R8 raffle ticket and choosing to participate in the DreamCar #1 Audi R8 raffle, each raffle participant acknowledges and agrees that DCD has the right, in its sole discretion, to elect not to proceed with the raffle for any reason whatsoever or for no reason, and in such event, a participant’s sole and exclusive remedy shall be to receive a refund of the full price paid by such participant for each raffle ticket purchased, without interest.

In the State of New Mexico, a license to hold a raffle is only needed if a qualified organization plans to hold more than one raffle or bingo game each quarter or four in one year. A qualified organization may raffle anything that does not require a license to distribute, such as alcohol and firearms. If the raffle prize is valued at more than $75,000, the organization must notify the GCB at least 10 days before selling raffle tickets.

 

More detailed information about these obligations can be obtained from the New Mexico Taxation and Revenue Department, Tax information and Policy Office, at 575-827-0700, and the Internal Revenue Service, at 1-800-829-1040.

 

Organizations conducting fundraising activities may have certain registration and reporting obligations. Contact the Public Regulation Commission, Corporations Bureau at 575-827-4500, and the (57-22-5 NMSA) Attorney General’s Office, Registry of Charitable Organizations, at 575-827-6000, for more information.

 

The DreamCar #1 Audi R8 Raffle is held in the State of New Mexico. It is governed by New Mexico Gaming Control Board NMAC-15-23-2021. The Charitable Solicitations Act is found at §57-22-4 NMSA.  There is no provision in this act providing for the general use of games of chance to solicit charitable donations.  However, there are specific statutes, the Gaming Control Act, and the Bingo and Raffle Act which permits using specific games of chance for charitable purposes and which set out specific legal guidelines for doing so.  There are no statutes permitting the use of ANY other game of chance for the purpose of soliciting charitable donations.  In order to hold a raffle in New Mexico, you (an organization) must qualify as such under either the Bingo and Raffle Act or as defined by the Criminal Code to do so and all the proceeds must go to lawful purposes as defined by the law.

 

These are not the only laws and regulations that govern raffles. For example, for further information about raffles and federal taxation, consult IRS Notice 1340 Tax-Exempt Organizations and Raffle Prizes.

 

According to NM Gaming Control Board the defition of raffle is a game of chance conducted by drawing for prizes by chance or by selling tickets or rights to participate in such a drawing.

 

The Bingo and Raffle Act identifies certain “qualified” or “charitable” organizations that may obtain licensure from the NM Gaming Control Board to conduct regularly scheduled bingo games and/or to sell pull tabs and raffle tickets in the state.  Monies raised by these means shall go to a “lawful purpose”. In the 2009 legislative session the old act was repealed, redone and renumbered, it is now 60-2F-1 thru 60-2F-26 NMSA.

  • 60-2F-4(P) “lawful purposes” means:
  1. educational, charitable, patriotic, religious or public-spirited purposes that benefit an indefinite number of persons either by bringing their minds or hearts under the influence of education or religion, by relieving their bodies from disease, suffering or constraint, by assisting them in establishing themselves in life, by erecting or maintaining public buildings or works, by providing legal assistance to peace officers or firefighters in defending civil or criminal actions arising out of the performance of their duties or by otherwise lessening the burden of government. “Lawful purposes” includes the erection, acquisition, improvement, maintenance, insurance or repair of property, real, personal or mixed, if the property is used for one or more of the benefits stated in this paragraph; or
  2. augmenting the revenue of and promoting the New Mexico state fair; §60-2F-4(F) NMSA “charitable organization” means an organization, not for pecuniary profit, that is operated for the relief of poverty, distress or other condition of public concern in New Mexico and that has been granted an exemption from federal income tax as an organization described in Section 501(c) of the United States Internal Revenue Code of 1986, as amended or renumbered; §60-2F-4(Y)NMSA “qualified organization” means a bona fide chartered branch, lodge or chapter of a national or state organization or any bona fide religious, charitable, environmental, fraternal, educational or veterans’ organization operating without profit to its members that has been in existence in New Mexico continuously for a period of two years immediately prior to conducting a raffle or making an application for a license under the New Mexico Bingo and Raffle Act and that has had a membership engaged in carrying out the objects of the corporation or organization. A voluntary firefighter’s organization is a qualified organization and a labor organization is a qualified organization for the purposes of the New Mexico Bingo and Raffle Act if they use the proceeds from a game of chance solely for scholarship or charitable purposes.

The following are defined in §60-2F-4 NMSA;

(G)  chartered branch, lodge or a chapter of a national or state organization
(AA)  religious organization;
(J)  environmental organization;
(L)  fraternal organization;
(I)  educational organization;
(BB)  veteran’s organization.

Except for charitable organizations, the Act does not require that the organization seeking licensure have obtained an exemption from federal income tax under Section 501(c) of the Internal Revenue Code. Therefore, in determining whether any other applicant is a qualified organization, the NMGCB may accept other satisfactory proof of non-profit status, such as a copy of the organization’s Articles of Incorporation filed with the Public Regulation Commission under the state’s Nonprofit Corporation Act, chapter 53, Article 8, NMSA 1978.

 

Effective July 1, 2009, 60-2F-26(B) “Notwithstanding the provisions of Subsection A of this section, no raffle with an individual prize exceeding seventy-five thousand dollars ($75,000) shall be held without a ten-day prior notification to the board of the conduct of the event and a subsequent notification to the board of the names, addresses and phone numbers of all prize winners.”

60-2F-18(B) “For a raffle:

  1. all raffle tickets shall be represented in the container from which the winner is drawn;
  2. the drawing shall be open to the public;
  3. each raffle ticket shall display all information as directed by the board; and
  4. when any merchandise prize is awarded in a raffle, its value shall be its current retail price. No merchandise prize shall be redeemable or convertible into cash.”

 

DreamCar #1 Raffle Filings, Certificate & Permit

 

DreamCatchers is a New Mexico nonprofit. It is compliant in its filings with the New Mexico Secretary of State.  To find our filings, go to the NMSOS page, then for Charity Name type in “DreamCatchers D.R.E.A.M.S” and hit return.  The search will return all organizations containing that name (of which there is just one at this time), but to be certain you have the correct organization you can verify that the NMSOS  and the FEIN is >>>>>.  Click on the link to see our filings.

DreamCatchers has received its 501(c)(3) approval letter from the US Internal Revenue Service. Click here to see the approval letter.

 

DreamCatchers possesses a Certificate of Solicitiation issued by the State of New Mexico.  Click here to see the certificate.

 

DreamCatchers has obtained the necessary permit for conducting a raffle in the state of New Mexico. Click here to see the Sunland Park Business license.

 

You may contact DreamCatchers as follows:

Patricia Dahlin

Vice President

DreamCatchers

1210 Country Club Rd #19

Sunland Park, NM 88008

575-313-1740

info@dreamsraffles.com

 

 

 

Raffle Ticket Tax-Deductibility

Raffle tickets are NOT tax-deductible, even when the Raffle is being held by a tax-deductible organization. That is because a raffle ticket is regarded as a “thing of value”, i.e., you have a chance to win a prize. It is not treated as a tax-deductible donation. See Internal Revenue Service Publication 526, page 6.

 

Disclosures Required by New Mexico Attorney General Regulations list cmr number

The simplest way to perform the disclosures required of us by these regulations is to list each requirement of the regulations followed by our disclosure. Each piece of the regulation is quoted here in italics. You may find these regulations for yourself here(link) These mandated disclosures are listed in the specific section, list cmr: Disclosure.

For convenience, throughout this section we will refer to the DreamCar #1 Raffle as the Raffle. 

 

(1) In any raffle conducted pursuant to NM, the sponsoring organization must disclose the following information either on the raffle ticket itself or in a written notice given to the purchaser prior to the sale:

We provide our disclosures here, where they may be reviewed prior to purchasing a ticket. We also provide appropriate disclosures on the ticket itself.

(a) a full and fair description of the prize;

There are Three Prizes in the Raffle: One Grand Prize, a Second Prize, and a Third Prize.

The Grand Prize is an Audi R8.

Second and Third Prize award amounts are listed in the Prize Descriptions. The Second and Third Prize Cash Winners, taxes will  be paid by DCD required by law before receiving the balance after taxes of these money prizes. DreamCatchers believes all two cash prize winners will be subject to payment of some withholding taxes. 

 

In particular, as described in  IRS Instructions for Forms W-2G and 5754 (01/2021), immediate federal backup withholding is required in the amount of 24% for winnings over $5,000. The state of New Mexico requires 5% withholding for winnings above $600. The Prize Winner taxes for cash prizes will be paid by DCD and forward these amounts to these tax authorities. Then, DreamCatchers will issue a payment check to the Prize Winner in the remaining amount described in the Prize Description. For example, in the Raffle the Grand Prize has an Alternate All-Cash Prize value of $30,000. Of that amount, 25% must be paid $7,500 must be sent to the IRS. The winner is also required to pay their individual state tax based on residency.

 

Selected Tax Payments are Part of the DreamCar #1 Raffle Prizes

The requirement for withholding tax payment is as follows:

  1. DreamCatchers is a nonprofit incorporated in New Mexico with its headquarters located in Sunland Park.
  2. Raffles are a type of wagering. See NM Tax Withholding (link to page)
  3. Residents of New Mexico are subject to New Mexico tax on income
  4. A nonresident of New Mexico is also subject to New Mexico tax on income from an NM source; see NM Laws (link to Page)
  5. Withholding is required on wagering income in New Mexico if it is required under IRS Section 3402; see MA TIR 13-4, section B.
  6. Withholding for New Mexico shall apply to winnings of $600 or greater; see NM tax withholding page.
  7. Withholding of wagering income is required under IRS Internal Revenue Code Section 3402.
  8. Nonresidents of New Mexico are also subject to New Mexico income tax on income from a New Mexico source; see NM page.
  9. Additionally, a Raffle Prize Winner who does not reside in New Mexico may be required to file an income tax return in New Mexico, if the Winner’s gross income exceeds $5,000 see NM Taxation & Revenue for non New Mexico residents.

 

The IRS federal tax withholding payment is described by  IRS Instructions for Forms W-2G and 5754 (01/2021).

 

Link to verify DreamCatchers™ D.R.E.A.M.S. nonprofit corporation status in NM here (link to NM SOS copy of nonprofit status with NM)

Link to verify DreamCatchers™ D.R.E.A.M.S. nonprofit corporation status with the NM SOS  here.

 

Link to verify NM General Attorney certificate of solicitation here (link to below website to verify).

Link to verify NM business license for Sunland Park here(link to below website to verify).