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Discussion Starter · #1 · (Edited)
TL : DR - watch this!


Looking to make a difference for yourself or a gift? What if you could fund climate action while securing a chance to win the quickest SUV on the road or the most capable electric SUV off the road? You’re in luck because Climate XChange has launched our 7th Annual Raffle.

The Climate XChange raffle was shaped by the Tesla Motors Club, a community not unlike Rivian Owners Forum. The raffle was started in 2015 by an early Model S owner who solicited ideas and input from other TMC members to structure the fundraiser and its prizes. The first few years we held launch and drawing events with lots of owners in attendance, some of whom volunteered to put raffle promotional stickers on their Teslas. Covid-19 put an end to in-person events, but the raffle continues with drawings streamed online. From the start we’ve always paid federal and state prize taxes on the grand prize, and this year is our biggest prize pool yet — over $270,000 total!

But the world of EVs is evolving, and just as we were thinking it was nearly time to offer something new and different, some of our past buyers started telling us they weren't interested in winning a Tesla, and ticket sales were slow. So after launching this 7th raffle we quickly added new options for our Grand Prize winner to choose: a Rivian R1S SUV or R1T Truck with any and all options! And to celebrate these new prizes, Climate XChange is now a Rivian Owners Forum Supporting Vendor!

This past summer, Congress passed the Inflation Reduction Act (2022), the country’s largest clean energy investment ever, extending 30 percent residential EV charging tax credits through 2032. These unprecedented investments will allow EV drivers to conveniently plug in during trips across town or across the country, making the decision to go electric easier than ever. But why buy a Tesla or a Rivian when you could win one?

This year, we’re offering our largest Grand Prize yet with a total value of up to $250,960, including federal and state taxes paid by us! Our Grand Prize winner will drive away in a custom-made Tesla of their choice, with options including the Model X Plaid — or a Rivian R1S SUV.

Tesla’s Model X Plaid combines instant speed with spacious luxury. Powered by three motors, the Model X Plaid can accelerate from 0–60 in 2.5 seconds and travel a quarter mile in 9.9 seconds, making it the quickest SUV on the road. Beyond its incredible speed, Tesla’s latest offering features the famous falcon wings, steering yoke and stunningly simplistic design the company is known for. Our winner can also choose one of Tesla’s S, Y or 3 models.

But we didn’t stop there. We just added a new alternative Grand Prize, the Rivian R1S SUV with any and all available options. Car critic Doug DeMuro called the R1S “the best all-around car I’ve ever tested,” and “the most amazing electric SUV yet.” Designed for an active lifestyle, the R1S seats seven and has dual or quad-motor AWD, 300+ mile range, 0-60 in 3 seconds, a ground clearance of up to 14.9” and the ability to wade through water up to over 3 feet. Unique features include a power front trunk hood, built-in air compressor, two 120v outlets and removable/rechargeable flashlight and bluetooth speaker. Or choose the Rivian R1T pickup, Motor Trend 2022 Truck of the Year, with a five person crew cab, 5-foot bed and many of the same specs and features.

We’re also offering 2nd, 3rd, 4th, and 5th place cash prizes to increase your odds of winning.

This Year’s Prizes:
Grand Prize:
Your choice of:
Tesla Model X Plaid Luxury SUV or
Model S Plaid luxury performance sedan or
Model 3 Midsize Sedan or
Model Y Midsize SUV or
Rivian R1S SUV or
R1T Truck
with any options
Max car total (which is for Model X Plaid) = $165,640
Max Tax Payments = $85,346
Total Value = $250,986
Alternative Grand Prize: $100,000

2nd Prize $10,000
3rd Prize $5,000
4th Prize $3,000
5th Prize $2,000
Total Prize pool value over $270,000

BUY YOUR TICKETS TODAY

Every ticket purchase in the 7th Annual Tesla Raffle directly supports our nonprofit’s work decarbonizing our economy by advancing state-level climate policy. With historic federal investments in building a clean economy, states are primed for implementing climate plans and policies, accessing long-lasting funding sources, and assisting those on the front lines of the climate crisis. However, funding alone won’t solve the myriad of other challenges that stand in the way of states equitably reducing greenhouse gas emissions. It’s imperative that policymakers, business leaders, and advocates work together to pass climate policies that can achieve the greatest impact.

Learn more about Climate XChange

At Climate XChange, a Boston-based 501c3 nonprofit, our team is dedicated to making these policies a reality by equipping climate actors with data and resources for passing legislation and facilitating interstate collaboration. Through our campaign on the ground in Maryland and our State Climate Policy Network and Dashboard connecting policymakers and advocates from across the country, we’re harnessing the strength of thousands to push forward climate action on the state level.

There’s never been a better time to join the EV revolution. Get your hands on the quickest SUV on the road or the most capable electric SUV off the road in 2023 by entering our 7th Annual EV Raffle today.
 

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Discussion Starter · #2 · · Business
A quick update: Sales are running far behind this year for various reasons, but our challenge is your opportunity! Right now your odds of winning a Rivian or Tesla have never been better. As can be seen from the raffle site ticket sales "speedometer" image pasted below, we are at about 2000 out of 5000 tickets sold, with five weeks to go (last year we were at over 3000 tickets at this point, and sold all 5000 with 3 days to go). So your current odds of winning a car tax-free or one of the four cash prizes are 1 in 400! Please take advantage of this situation, and help fund our work helping states develop and implement needed climate policies. Thanks!

Gauge Measuring instrument Auto part Circle Font

 

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Discussion Starter · #4 · · Business
Sounds like a scam. Admin, can you guys do anything about this?
@ERivTruck I'm sorry you feel this way, but I assure you we are not a scam. I have signed up as an business advertising supporter on this forum as well as Rivianforums and Tesla Motors Club, where we have been a sponsor multiple years - and where the raffle started. This is our seventh annual raffle, and it is the primary source of funding for Climate XChange, a registered 501c3 nonprofit. We are also funded by individual donations and foundation grants.

I am on the board of Climate XChange and for the past few years have been in charge of the raffle. All of my time is volunteered. If you go to the raffle site, carbonraffle.org, you can see information on each of the past six raffles, with photos and videos of the winners. Our main website is climate-xchange.org, where you can learn about our mission - to achieve a rapid and equitable transition towards a zero-emissions economy by advancing state climate policy - and impact. We host a network of state climate activists, legislators, government and university employees who are working on state-level climate policy. That mailing list has about 17,000 members. Our State Climate Policy Dashboard is a unique resource with information on over 60 climate policies across all 50 states. It has been cited by the New York Times Climate Forward newsletter as a useful information source.

I am happy to answer any questions you or others may have about our organization and the raffle.

Peter Kirby
Board Member and Raffle Director
Climate XChange Education and Research
 

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Looks legit. Good cause. Not sure of the value proposition though. $1,250,00 in ticket sales on direct costs of $256k (not sure how you get that - spending 140k max on vehicle + tax payment $55k (maybe) gets you to $256k). Or to look at it another way. The odds of winning are 1 in 5,000 or .02%. Thus the expected value is $256k x .0002 or $51. I think your problem is a threshold issue. $250 is significant cost of entry for an expected value of $51. If you get to 5,000 in sales, great. If you don't, you'll realize that the Fed is indeed taking the punch bowl away.

Cheers. Good luck. I hope you rise the money.
 

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Discussion Starter · #9 · · Business
Hi @dgillies250, worst odds of winning any prize are 1:1000, grand prize is 1:5000. $250 is a significant entry hurdle, but we've had it since the beginning. And we sold out all 5000 tix last year, and 4000 the two years prior - we increased the number of tickets when Tesla introduced the Plaid and our prize costs went up.

As for how we get to the tax amount, it's complicated. I'll paste here the text from our raffle site, carbonraffle.org, where the founder of the raffle explained how it works. It starts with the price of the car (max $163,990 when we launched in September, the recent price cuts help us) plus delivery, local sales tax (6.25% in MA) and registration fees. IRS and MA prize taxes are then calculated on this amount, as follows:

You may not know this: as a Prize Winner, you may immediately owe withholding taxes to the IRS. Below, we explain why that’s a problem and also why we make the Grand Prize better by dealing with this problem!

When a Winner wins a raffle prize, United States law and IRS regulations treat the raffle prize as income to the Winner, so those laws and regulations require that the Winner pay taxes on the Fair Market Value of that Prize. When the Prize is small, $5000 or less, those taxes are solely the responsibility of the Winner. In the event that the value of the Prize is $5,001 or more, the organization sponsoring the raffle must withhold the required amount of taxes on the Prize. The sponsoring organization then remits these taxes to the IRS.

In many (most?) cases, raffles require the Winner to come up with the necessary cash in advance, either by sending the appropriate amount to the sponsoring organization or by allowing the sponsoring organization to deduct money from the Prize (if, say, the Prize has a cash component). In the case of Climate XChange’s Grand Prize, a Tesla Model X, Model S, Model Y, Model 3, or Rivian R1S SUV valued at up to $165,000 (plus MA state sales tax and registration fee), the Winner would be required to send 25% of that value to Climate XChange to be forwarded to the IRS — over $44,000! And you’d have to send us that money before you received your Prize.

It turns out that the Commonwealth of Massachusetts also requires a withholding tax payment. That’s because Climate XChange is based in Massachusetts and the Commonwealth’s taxation laws follow the federal taxation laws. So Massachusetts treats a Prize awarded by a Massachusetts-based nonprofit (that’s us, Climate XChange) as Massachusetts-derived income to the Winner. And that’s taxable. In the case of the Grand Prize, the Winner would have to send us 5% of that value — over $8,000. In advance, of course.

Because we at Climate XChange believe that most people don’t have this kind of money lying around to send to the IRS and the Massachusetts Department of Revenue (DOR) whenever they feel like it, we decided that the Grand Prize should include, as part of the Prize itself, the required U.S. and Massachusetts withholding tax payments for the Prize. The IRS and DOR understand and allow for this possibility. However, because the tax payment we make on your behalf is also something of value to you, it turns out that we have to pay taxes on the taxes that we are paying for you! We have to pay the IRS 33.33% of the Prize’s Fair Market Value, rather than the 25% you would have to pay directly, for the privilege of paying your U.S. prize tax for you, because when we pay those taxes on your behalf, that counts as income to you. Then, Massachusetts wants another 5%. But wait…it gets worse…the money we send to Massachusetts counts as income for you from the IRS perspective. So we have to pay tax to the IRS on the taxes we paid on your behalf to Massachusetts. Then, from the Massachusetts perspective, we’ve just given you more income by sending a larger tax payment to the IRS, so now we have to pay tax on that to Massachusetts! This craziness goes on for a while until the taxable amounts become small enough that we reach a dollar or less. (Incidentally, while the regulations allow us to subtract the price of the raffle ticket from the amount we send the IRS and the DOR, we no longer bother, as the amount we would save is tiny compared to the amounts we have to pay.)
It works out to about 43% on top of the total prize value, we run it through an iterative spreadsheet just to make sure.

In the end, this is a raffle with good odds, low overhead (beyond prize pool our costs are online advertising, MA 5% tax on ticket sales, 3% card processing fees, and a small amount for three part-time consultants who handle web back end, web front end, and online marketing). The rest of the money goes to fund our staff and projects. By buying a ticket you have a chance to win, and even if you don't win you're supporting a good cause. States are where the rubber meets the road in terms of policy, and state climate policy doesn't get a lot of attention. We hear from legislators who have minimal staff and have no idea how other states have achieved or even set their climate goals. Through our State Climate Policy Network and Dashboard we provide some direct help, but more importantly (and cost effectively) give them access to information and connect them with their counterparts in other states who are ahead of them in a given policy area, as well as others who can help. Our goal is to have disproportionate impact with just a small staff (and budget). We just received a grant to build out a technology platform for the Dashboard, which will expand its coverage and enhance capabilities... stay tuned!
 
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