Raffle Rules
The Grand Prize Drawing for the Palos Verdes Art Center (PVAC) Win Your Dream House Raffle will be held on Tuesday, April 27, 2010, beginning at 5:30 p.m., at the Palos Verdes Art Center, 5504 W. Crestridge Rd., Rancho Palos Verdes, CA 90275. Tickets will not be sold after 4 p.m. Saturday, April 24, 2010. Tickets may sell out before that time. Harrington Group, an independent accounting firm, will supervise the drawing. All drawings for prizes are open to the public, but the winner need not be present to win (except for door prizes).
Only 24,000 tickets will be sold. A maximum of 25,000 tickets will be eligible for the drawing. 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.
If the Choose Your Own Dream House option is chosen as the prize, the Grand Prize winner assumes all fees, local, state and federal taxes and financing costs (including, but not limited to, escrow and closing costs, appraisals and title insurance) which must be paid when the House is transferred to the winner. Likewise, there are federal taxes and there may be state and/or local tax consequences if the winner selects the alternate cash prize. (See Grand Prize Rules below.) These consequences may apply to other prizes as well. PVAC takes no responsibility for any tax liabilities. Consult your tax advisor. This offer is void where prohibited by law, and all federal, state and local laws and regulations apply.
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 their likenesses and images of any House selected may be disclosed to and used by the news media and may otherwise be used by PVAC for publicity purposes and in lists of prize winners to be published on the PVAC website. Other rules and regulations may apply. Please contact PVAC if you have questions. PVAC’s interpretation and application of the rules and regulations shall be final.
By entering this raffle, each participant releases PVAC, its trustees, officers, employees and agents from any and all liability for injuries, losses or damages of any kind or caused by or resulting from acceptance, possession and use or misuse of any prize. Each winner also agrees to indemnify and hold PVAC harmless from any and all losses, damages, rights, claims and actions of any kind rising in connection with or as a result of the winner’s acceptance or use of any prize.
Following each drawing, the list of winners will be published on the PVAC website and posted at the Art Center or may be obtained by sending a written request plus a stamped self-addressed envelope to: Palos Verdes Art Center, 5504 W. Crestridge Rd., Rancho Palos Verdes, CA 90275.
Tickets are $150.00 each. You may buy as many available tickets as you wish. All sales transactions are final. No payments will be refunded.
More than one name may be entered on the ticket to indicate that any prize won is to be shared. Only the names provided on the ticket will be eligible to receive prizes. Unless otherwise designated, winnings will be divided equally among all names on the winning ticket. On prize amounts of $500 or less, PVAC, at its option, may write only one check to the person named first on the ticket. That person will then be responsible for dividing the prize with the other persons listed. Multiple tickets must be purchased at the same time and be in the same name(s) to be eligible for the Multiple Ticket Drawings. There will be a special Multiple Ticket Drawing at each Early Bird Drawing and at the Grand Prize Drawing. Tickets won as prizes in the Early Bird Drawings are NOT eligible for the Multiple Ticket Drawings. Only purchased multiple tickets are eligible for those drawings.
To order tickets, call 310-541-2035 or 310-541-2479. Or download the order form and fax it to 310-541-0248 or 310-541-4370 or mail it to Win Your Dream House Raffle, Palos Verdes Art Center, 5504 W. Crestridge Rd., Rancho Palos Verdes, CA 90275. Entries must include payment or credit card information (Visa or MasterCard only) to be eligible. Email orders will not be accepted.
PVAC reserves the right to reject any entry form that is submitted with payment that does not constitute “good funds” or is defective or physically altered. Prior to the Grand Prize drawing, PVAC will make a reasonable effort to notify the individual and/or entity that submits such an entry form or one which has been rejected because the credit card or check did not clear that the entry has been rejected.
Early ticket purchases will be included in multiple drawings all of which will be held at the Palos Verdes Art Center, 5504 W. Crestridge Rd., Rancho Palos Verdes, CA 90275. You may attend any or all of these drawings.
Tickets purchased by 4 p.m. Saturday, December 19, 2009, will be eligible for the first Early Bird Drawing on Tuesday, December 22, 2009. Multiple tickets purchased by that deadline will be eligible for both the Early Bird Drawing and the Multiple Ticket Drawing on that day. The following format will be used:
The same format will be followed at each of the three subsequent Early Bird Drawings. All tickets purchased by 4 p.m. Saturday, January 23, 2010, (including all tickets purchased before the December drawing) will be included in the second Early Bird Drawing on Tuesday, January 26, 2010. All tickets purchased by 4 p.m. Saturday, February 20, 2010, (including all tickets purchased before the December and January drawings) will be included in the third Early Bird Drawing on Tuesday, February 23, 2010. All tickets purchased by 4 p.m. Saturday, March 20, 2010, (including all tickets purchased before the December, January and February drawings) will be included in the fourth Early Bird Drawing on Tuesday, March 23, 2010.
To qualify for any drawing, ticket orders must be received and/or purchased by the indicated deadline. Any orders received after the stated deadline will be held for the next applicable drawing. PVAC assumes no responsibility for lost, late, misdirected or non-delivered mail.
A maximum of 24,000 tickets will be sold. A maximum of 25,000 tickets will be eligible for the Grand Prize drawing. Regardless of the number of tickets sold, the Grand Prize Drawing will be held at 5:30 p.m. April 27, 2010, at the Palos Verdes Art Center, 5504 W. Crestridge Rd., Rancho Palos Verdes, CA 90275.
The deadline for purchasing tickets for the Grand Prize Drawing is 4 p.m. Saturday, April 24, 2010. All tickets purchased by that time will be entered in multiple drawings on April 27, using the following format:
All 24,000 tickets must be sold for the Grand Prize winner to have a choice of the $1,500,000 Choose Your Own Dream House option or $1,000,000 cash prize. Similarly, a minimum of 22,000 tickets must be sold for the Grand Prize winner to have a choice of the $1,200,000 Choose Your Own Dream House option or the alternate $1,000,000 cash prize. A minimum of 20,000 tickets must be sold for a $1,000,000 cash prize to be available (with no Dream House option).
If fewer than 20,000 tickets are sold by 4 p.m. Saturday, April 24, 2010, the raffle will be held as scheduled, and all prizes will be awarded as advertised with the exception that the Grand Prize winner will receive a 50% share (not to exceed $1,000,000) of the net raffle proceeds, less appropriate and required income taxes (federal and/or state). Net proceeds are defined as the balance of funds left after paying all other prizes and all raffle expenses. Also, at its sole discretion, PVAC may elect to offer the Choose Your Dream House option, regardless of the total number of tickets sold.
If either Choose Your Own Dream House option is available, the Grand Prize winner must make an election in writing between the House or the cash prize no later than 3:00 p.m. Wednesday, May 12, 2010. If the Grand Prize winner fails to make an election by this deadline, he or she will be deemed to have elected the cash option. If the Grand Prize winner elects to take the Choose Your Own Dream House option, the winner must deposit the appropriate and required income taxes (federal and/or state) in an escrow account by Tuesday, June 15, 2010, or the winner will be deemed to have elected the cash prize.
Appropriate withholding of income taxes on gambling winnings (federal and/or state) is required on all raffle prizes exceeding $10,000. If the Grand Prize winner selects either Choose Your Own Dream House option, by Tuesday, June 15, 2010, the winner must deposit in an escrow account funds equal to the required withholding. Required federal tax withholding on the $1,500,000 House is approximately $375,000. On the $1,200,000 House, this amount is approximately $300,000. Currently, no state tax must be withheld, but state income taxes may also be due on the value of the house. (The winner will be notified of the exact amounts required before the initial decision deadline of May 12, 2010.) If the Grand Prize winner selects the alternate cash award instead of the House, appropriate and required income taxes (federal and/or state) will be withheld by PVAC in accordance with the law, and PVAC will remit the balance of the cash prize to the Grand Prize winner.
If either Choose Your Dream House option is available and selected, the Grand Prize winner may select his/her own Dream House in the Palos Verdes area by June 24, 2010. The designated area for the Dream House is defined as Los Angeles County’s Palos Verdes Peninsula, Torrance, San Pedro or Beach Cities (Redondo, Hermosa or Manhattan Beaches). The Grand Prize winner is solely responsible for finding a House to purchase for the value of $1,200,000 or $1,500,000, depending on the available option based on the number of tickets sold. The Grand Prize winner also is solely responsible for all House sale negotiations in the final purchase price of the home. The selected House must appraise for at least the sales price. The appraisal must be completed by an independent, third party appraiser agreed upon by both PVAC and the Grand Prize winner.
If a House of lesser price is selected, the unused portion of the prize value is forfeited by the Grand Prize winner. There will be no cash payment of the unused portion of the prize money. (Any overpayment of required withholding taxes to the escrow account will be refunded.) If a House of higher price is selected, the Grand Prize winner must supplement the prize monies with his/her personal funds or a mortgage loan.
The Grand Prize winner assumes all fees, local, state and federal taxes, financing and other associated costs (including, but not limited to, escrow and closing costs, appraisals, inspections and title insurance) which must be paid when the House sale is closed. The sale must close no later than Monday, August 16, 2010.
PVAC provides no guarantee or warranty, expressed or implied, in connection with any House selected by the Grand Prize winner, and such House will be transferred as is. PVAC accepts no liability or responsibility regarding the construction or condition of the House. Similarly, PVAC makes no guarantee that the Grand Prize winner will be able to sell the House for its appraised value nor is there any guarantee that the Internal Revenue Service (IRS) or the California Franchise Tax Board will accept that value of the House for the purpose of determining any income tax that may be due from the Grand Prize winner.
Anyone 18 years of age or older may enter. Employees and members of the Board of Trustees of PVAC and Harrington Group, their spouses and children are excluded from participating. An affidavit of eligibility may be required from prize winners. Void where prohibited by law.
By letter from the Attorney General’s office, the Palos Verdes Art Center has re-registered with the Department of Justice under Raffle Registration Number R-1201 and is authorized to conduct raffles in California pursuant to the provisions of Penal Code section 320.5, for the raffle period which begins September 1, 2009, and ends August 31, 2010.