Sports pool winnings

Amy Horrocks

We've not had this before — employees gave $10 each towards a sports pool for the NCAA Final Four and then there was a separate pool for the PGA Masters Tournament. The winner received half of the total collected, the other half has been donated to us.

Do I just enter this as a gift under Cash Receipts/Anonymous with no ack letter? Do I enter $5 under each employee's name and send ack letters to each? I have a general fund these monies can go to, I just am unsure who to list as donor(s).

(We have no minimum threshold for gifts/ack letters. Every gift gets a TY letter.)

JoAnn Strommen

You may need to check with auditors or counsel.

Was sports pool promoted as half would be a donation? I don't think there's a charitable contribution component for of the $10 for any of those who entered the pool. That is classified as game of chance/gambling. Not recognized as a charitable contribution.
I would lean toward Cash REceipts/Anonymous to record the funds you did receive.

Or did winner receive all and then personally decide to give half? Then he is giving of his funds and could be receipted for that amount.

This is just my opinion. Not a tax expert at all.

Austen Brown

I would enter it as one lump sum under an anonymous record. The funds are not tax deductible as the 'donation' was given with a chance to win something in return, equivalent to a raffle.