Are there any T&E policies or practices surrounding the purchase of raffle tickets at company sponsored events and the winning of a drawn door prize by the raffle ticket?
“If it is up to the individual to buy or not buy a ticket to support a cause and possibly win a prize, then it is a personal decision and the purchase price of the ticket typically would not be reimbursed by the company. However, if there is company approval or an expectation that the employee should purchase a ticket to show the companys support of the cause, etc., then it would be reimbursable. This is a business decision to be made by management, and addressed in the T&E policy. Such purchases may fall under travel and entertainment, being considered an entertainment expense and subject to the 50 percent deductibility rule. Or they might be considered marketing, in which case it would be fully deductible for tax purposes, and reimbursable to the employee.
