I proposed at work a couple of years ago that as a fundraiser, we contact a bank or mortgage company to donate a foreclosed property that we would then auction or raffle to raise money to pay for a holiday program for our local needy children.  I suggested that so the bank wouldn’t lose everything, we put a reserve on the property and the bank would get their reserve amount. Anything in excess would go to the charity work.

Unfortunately, I was never able to rally adequate support to make the auction happen, but when I read about the sometimes success, sometimes failure of other house “giveaways” via raffles, it reminded me of the almost effort we made.  The raffles are a great way to raise money for a good charity when they work.

Home raffles, once a novelty, seem to have proliferated around the country in recent years. In California, for example, at least eight charitable groups held raffles for existing or to-be-built homes in 2009, with varying degrees of success, according to local media reports.

For example, an arts group in San Francisco netted just over $1 million after covering its raffle expenses. But ticket sales fell short for a raffle conducted by a group that fights poverty in San Jose, and the charity just broke even. Yet another group announced that it has postponed its raffle and plans to reschedule, but it promises on its Web site that it will refund ticket costs if requested.

More problems can arise when the tax man cometh. To operate a charity fundraiser like this, you’d definitely need the support of a strong management company to oversee that everything is being done correctly.  I still think it’s a great idea.  I’d love to win a house using a raffle, but the idea of an auction could also potentially be a real winner for charities, for the banks, and for any real estate company sponsoring this type of event.  Plus someone would get a new home at an auction price!