I have a small NJ charity that supports homeless mentally challenged people. I received an anonymous donation of a winning lottery ticket. Can the charity collect the winnings? For taxes, how do I report this? Does the charity have to pay taxes on this? Is this considered unrelated income which would be taxable?


1 Answer 1


Yes, the charity can collect the winnings.

The type of charity is important for everything else, but mainly for the person that donated it and when. Such as was it a winning ticket when the organization received it.

For the charity there will most likely only be the net investment tax which is a type of tax that doesn't exist outside of the non-profit world, and any "income" or "lottery" taxes withheld can come back. Its pretty awesome. Get tax advice from a non-profit lawyer.

If your charity is not properly registered then you will have to pay the full taxes.

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