Are Omaze Donations Tax Deductible

omaze-review

You may have heard of an online campaign that allows you to donate. Simple, isn’t it?

But, what if you get a prize in return? It could be a scam to some. To others, it’s not. It’s understandable; giving away prizes and helping those in need is good in its own way. One thing to note is how transparent one campaign is. Omaze does this to make the campaign more fun to participate in.

Don’t worry; all of this is researched. This review will explain how Omaze works. The most important thing is how your money will go. Let’s get to it!

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Before you continue, you may want to check out this video by Seante Shep on YouTube that gives a quick overview. After, you will want to read the rest of the article for a more comprehensive review.

Omaze Overview Are Omaze Donations Tax Deductible

Omaze accepts cash donations. All donations will go to charities. In return, prizes will be awarded. They aim to challenge the idea of charities that provide opportunities to people. Some of these are once-in-a-lifetime experiences.

For as little as $10, you can participate in any sweepstakes from Omaze. They are a for profit company, and they give all their donations to charity. They won’t hide this information from you. This transparency will make sure all donations are shared equally.

Omaze also gives users the choice of which charity organization they can donate to. Some of them include:

  • UNICEF
  • All-Stars After-School
  • Julia’s House
  • Product Red
  • Make-A-Wish Foundation

Both the pros and cons

Pros

  • Donations will go to charity
  • Prizes are given away
  • You can meet celebrities
  • Accepts contributions from around the world

Cons

  • No refund policy
  • No live chat for customer support
  • Not all campaigns have a celebrity involved

How Omaze Works

You participate in a sweepstake raffle with various prizes in return. Omaze also brings in A-list celebrities when one campaign involves them. Contributions are accepted for any campaign.

Donations in Omaze go directly to Charities Aid Foundation America (CAF America). They accept both domestic and international donations. CAF America will give the proceeds from the sweepstakes as a charitable grant to designated organizations.

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What kind of prizes can you expect from Omaze

Omaze offers prizes that can give you once-in-a-lifetime experiences. Cash or large prizes such as a new car, house or lot can be won by Omaze.

Some giveaways in the past include:

  • Emilia Clarke and I attended the Game of Thrones Season Finale with Emilia Clarke
  • Pope Francis blesses a Lamborghini

Every Wednesday, the Omaze website announces the winners. Once you get the email, you can claim the prize.

How do you enter the Omaze Sweepstakes?

As stated before, you can enter by donating $10. You can also enter without spending anything. You’ll find the link to the “Free Alternate Method Of Entry” on any sweepstakes page.

When 10 days pass, the campaign will close. An automated lottery draws the winner. This eliminates favoritism for those who entered the sweepstakes through other methods.

Omaze has its own sets of rules in individual sweepstakes. Some may have exceptions if it is listed on the page. For example, one campaign is open for most countries except for the United States of America.

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Can You Get Disqualified in Omaze’s Sweepstakes?

You can be disqualified if you do not meet the Omaze requirements. Your participation in Omaze will be canceled if you don’t follow the rules.

Other reasons could also be:

  • Invalid email address
  • No immediate response from a winning notification
  • Inability to verify the identity within 7 working days
  • False or incomplete information

Were There Any Problems with Omaze’s Sweepstakes?

While scams are known in other organizations, it is vital to research the information beforehand. Omaze has not yet found any problems with sweepstakes.

Verify the information if it actually comes from Omaze. Since you are donating cash, your payment information could be most at risk.

Remember: Omaze doesn’t store any payment information about donors.

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What People Say About Omaze

Reception towards Omaze tends to be mixed. On one hand, people love the dedication the company is doing. On the other hand, people are not always satisfied with the company’s response.

One reason could be that a user complained about not being able to receive the prizes even though he followed the rules. Another complaint is overcharging what was donated.

For the overall experience, people loved the approach in their sweepstakes. The process is simple to understand, and there were no conflicts about their entries. They love the end result of helping those in need even when they did not win a prize. It’s a win/win situation.

Customer Service

Omaze offers a customer service platform. You can find it on their support center page, where you can contact them through email. You can also click the “Submit request” link to send an inquiry along with your contacts. However, there is no live chat.

Refund Policy

Omaze does not have a refund policy in their business model. Once they gather the donations, it will not be refunded to the donors. It is also not mentioned in their help center.

If you need a refund of your donation, you need to contact customer service for support.

Pricing and Cost

Omaze, a for-profit organization, should be obvious. Every donation will go towards their campaigns and prizes.

Only a tiny percentage of this money is actually donated to charity. If a celebrity is involved, 60% of this goes to charity. Expect different prices if no celebrity is present. Below is an estimate of the breakdown.

Donation Funnel Prize based experience Celebrity experience
Donation by the user $10 $10
Expenses $7 $2.50
Omaze’s profit $1.50 $1.50
Charity $1.50 $6

 

So, in the end, they do help, except that they need compensation to make it work for both sides.

Alternatives to Omaze

Omaze is a great place to start to give back. But there are many other options. The All-In Challenge Foundation is one of them. The main difference to Omaze is they are a non-profit organization. Are Omaze Donations Tax Deductible

They also offer celebrity experiences while also helping charity. Like Omaze, donations are tax-exempted.

Conclusion

Omaze is a great way for people to help. You can still enter their sweepstakes even though cash is not required. Every donation will go to the charities they have partnered with. All prizes may not be guaranteed to be the same quality. Are Omaze Donations Tax Deductible

With the possibility of participating A-list celebrities, the rules may differ per sweepstake. If you don’t read the terms, you could lose your money instead of giving a hand.

The downside is no present refund policy. You need to discuss this with customer service when there are problems with the sweepstake.

Each campaign is easy to participate in, and there are no red tapes involved. All in all, Omaze allows you to give back to charity.

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Frequently Asked Questions (FAQs). Are Omaze Donations Tax Deductible

What is Omaze?

Omaze, a for-profit organization that raises money for charity, offers sweepstakes and prizes. It was founded in 2012 by Ryan Cummins and Matthew Pohlson.

It came to existence in one charity auction they attended one day. They used the existing model to turn it into a more seamless platform for charity. They aim to give money in kind to all the charities with which they have partnered. Since it will go to those in greatest need, any amount is acceptable.

Is Omaze a legal company?

Yes. Omaze is also a privately-owned company. Keep in mind that Omaze needs profit to run its sweepstakes. Although they give away prizes, Omaze is not a charity. They do it to be different from all the rest.

About $1.50 of every $10 donation as each donation given is spent on marketing and other donations. Another $1.50 is then given to charity.

Does Omaze have a refund policy?

Omaze does not offer a refund policy. Because their donations are given to different charities, this is why Omaze does not offer a refund policy. You have to contact customer service when there are problems with the donation.

Is Omaze a tax-deductible charity?

Donations are not tax-deductible, meaning they are tax-exempt. All donations are accepted by Charities Aid Foundation America on their official website. This also means that international contributions are accepted by U.S. donors.

Do people actually get anything on Omaze?

Yes. Every Wednesday, Omaze announces the winners. The winners are contacted via email and can claim their prize within 24 hours. There are documents provided that prove your win, so you won’t get the short end of the stick.

Do charities benefit from Omaze?

Most of the time. Although they do not receive any benefits, they are able to get some. Information will be provided about the donations you gave. They will be listed on the campaign page.

Can non-profit organizations work with Omaze?

They can. You can contact their email with the details about the inquiry.

Are payment donations in Omaze recurring?

No. Any donations through Omaze are not recurring. The company does not store payment information and will not charge you more than once.

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