Are Omaze Raffles Tax Deductible?

omaze-review

Have you ever heard of an online campaign where you donate? Sounds familiar.

What if you win a prize? To some, it could be a scam. To others, it’s not. It is understandable. Giving away prizes and helping people in need is a good thing. One thing to note is how transparent one campaign is. Omaze makes it more enjoyable to take part in the campaign.

Don’t worry; all of this is researched. This review will explain how Omaze works. Most importantly, how your money will be donated in the process. Let’s get to it!

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Before you go on, you may want to check out this video by Seante Shep on YouTube that gives a quick review. Afterward, you’ll want to read the rest of the article for a more comprehensive review.

Omaze Overview Are Omaze Raffles Tax Deductible?

Omaze accepts cash donations. Any amount given will be given to charities, and prizes are given in return. They challenge the notion of charities providing opportunities for people. These are unique experiences that you will never forget.

You can take part in any sweepstakes at Omaze for as low as $10 While they do give their contributions to charity, they are a for-profit company. They do not hide it from you. Transparency will ensure that all donations are equally shared.

Omaze allows users to choose which charity they wish to donate to. These include:

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

Pros and Cons

Pros

  • Donations will be given to charity
  • Prizes are given away
  • Celebrities are available for you to meet
  • Accepts contributions from all over the globe

Cons

  • No refund policy
  • Customer support is not available via live chat
  • Not all campaigns have a celebrity involved

How Omaze works

You participate in a sweepstake raffle with various prizes in return. Omaze can also bring in A-list celebrities if one campaign involves them. Any campaign accepts contributions.

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

donations-to-charity

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What kind of prizes can you expect from Omaze

Omaze has prizes that will give you unique experiences. Cash or large prizes such as a new car, house or lot can be won by Omaze.

Some past giveaways include:

  • Attending the Game of Thrones season finale with actress 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?

You can donate $10 to enter, as we have already stated. You can also enter without spending anything. On the sweepstakes page of any campaign, you’ll find the “Free Alternate Method of Entry” link.

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.

Each sweepstakes has its own rules. Omaze is no exception. 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?

When you don’t meet the requirements stated in Omaze, you can get disqualified. Your participation in Omaze will be canceled if you don’t follow the rules.

Some reasons can also include:

  • Invalid email address
  • A winning notification does not receive an immediate response
  • 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.

Note: Omaze does not store payment information from the donors.

make-a-change

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What People Say About Omaze

Omaze is often met with mixed reactions. 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 possible reason is in one campaign, a user complained of not receiving the prizes despite following the rules. Overcharging for donations is another complaint.

For the overall experience, people loved the approach in their sweepstakes. It was easy to follow and entries were not subject to any conflicts. 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 has an available customer service platform. You can find it on their support center page, where you can contact them through email. Another option is clicking the “Submit a request” link and filling out the inquiry with your contacts. However, there is no live chat.

Refund Policy

Omaze does not have a refund policy in their business model. They will not refund donors once they have collected the donations. This is not also mentioned in their help centre.

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. Each donation given will fund 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 Experiences based on prizes 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

While you can start with Omaze to give back to people, there are more choices out there. The All-In Challenge Foundation is one of them. The main difference to Omaze is they are a non-profit organization. Are Omaze Raffles Tax Deductible?

They offer celebrity experiences and also help 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 Raffles Tax Deductible?

With the possibility of participating A-list celebrities, the rules may differ per sweepstake. So if you do not read the terms carefully, you might actually lose money rather than 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. Omaze makes it easy to give back to charity.

man-helping-woman

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Frequently Asked Questions (FAQs). Are Omaze Raffles Tax Deductible?

What is Omaze?

Omaze is a for-profit fundraising company that runs sweepstakes with prizes for giveaways. It was founded in 2012 by Ryan Cummins and Matthew Pohlson.

They created it at a charity auction that they attended. 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. Any amount will do since it will be given to those in need.

Is Omaze a legitimate company?

Yes. Omaze is also privately owned. Keep in mind that Omaze needs profit to run its sweepstakes. Although they give away prizes, Omaze is not a charity. It’s their way to stand out from 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.

Is Omaze able to issue a refund?

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. If you have any problems with your donation, please contact customer service.

Are donations on Omaze tax-deductible?

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

Do people actually get anything on Omaze?

Yes. Winners are announced on Omaze’s official website every Wednesday. They contact the winners via email, where you can claim the prize within 24 hours. You will be provided with documents to prove your win so that you don’t get left out.

Omaze can be used to benefit charities

They do 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.

Omaze can be used by non-profit organizations.

They can. You can reach them via email with details of your inquiry.

Is Omaze accepting payment donations recurring?

No. Any donations through Omaze are not recurring. Payment information is not stored by the company, and you will not be charged more than once.

charity-food

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