Does Omaze Count As Charity On Taxes

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? To some, it could be a scam. It may seem like a scam to some, but it is not to others. 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.

All of this information is thoroughly researched. This review will explain how Omaze works. Most importantly, how your money will be donated in the process. Let’s get right into it!

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

Omaze Overview Does Omaze Count As Charity On Taxes

Omaze is a fundraising platform that 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. These are unique experiences that you will never forget.

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. 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 go to charity
  • There are prizes to be won
  • Celebrities are available for you to meet
  • Accepts contributions from around the world

Cons

  • There is no refund policy
  • No live chat for customer support
  • Some campaigns do not involve a celebrity.

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. Contributions are accepted for any campaign.

Omaze donations go directly to Charities Aid Foundation 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:

  • Attending the Game of Thrones season finale with actress Emilia Clarke
  • Pope Francis blesses a Lamborghini

Winners are announced on the Omaze website every Wednesday. 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. You’ll find the link to the “Free Alternate Method Of Entry” on any sweepstakes page.

The campaign will end after 10 days. 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 of them can include exceptions when it’s listed on the page. One campaign, for example, is open to all countries with the exception of the United States of America.

counting-money

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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. If you do not follow the rules first and foremost, your participation will not be accepted.

Other reasons could also be:

  • Invalid email address
  • No immediate response from a winning notification
  • Inability to verify the identity within 7 working days
  • Giving false, 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.

If the information is genuine, verify it. Your payment information may be at most risk since you are donating cash.

Note: Omaze does not store payment information from the 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. While on the other side, they’re not satisfied with the response at times.

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. 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 either way.

Customer Service

Omaze offers a 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. There is no live chat option, however.

Refund Policy

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

Customer service can help you get a refund for a donation you have made.

Pricing and Cost

By this point, you should know that Omaze is a for-profit company. Each donation given will fund their campaigns and prizes.

Only a small percentage is actually given 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 from 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. One of which is the All-In Challenge Foundation. The main difference to Omaze is they are a non-profit organization. Does Omaze Count As Charity On Taxes

They also offer celebrity experiences while also helping charity. Donations, like Omaze, are exempt from tax.

Conclusion

Omaze offers a great way to help people. You can still enter their sweepstakes even though cash is not required. Every donation will go to the charities they have partnered with. However, not all prizes are guaranteed the same quality. Does Omaze Count As Charity On Taxes

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. If there are any problems with the sweepstakes, you should speak with customer service.

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.

man-helping-woman

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Frequently Asked Questions (FAQs) Does Omaze Count As Charity On Taxes

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.

They created it at a charity auction that they attended. They used the existing model as a basis to create a more seamless platform for charities. 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 legitimate company?

Yes. Omaze is also a privately-owned company. Omaze is a profit-driven company, in case you didn’t know. 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. The charity receives $1.50 more.

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. You have to contact customer service when there are problems with the donation.

Are donations on Omaze tax-deductible?

Donations are not tax-deductible, meaning they are tax-exempt. All donations are accepted by Charities Aid Foundation America on their official website. Donors from the United States will accept international donations.

Are people actually able to get anything from Omaze?

Yes. Every Wednesday, Omaze announces the winners. The winners are contacted via email and can claim their 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. They do get benefits, albeit a small amount. Information will be provided about the donations you gave. These donations will be displayed 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.

Are payment donations in Omaze recurring?

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

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