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Whenever it hires an independent contractor or third party entity, such as a nonprofit, it should request a completed version of this form from the party. The payer then keeps the form on file and uses the information on it at year-end to make its report to the IRS. Place the nonprofit's official name and address in the proper places at the top of the W-9 form, not the name or address of the person filing out the form. Leave the space marked âDBAâ blank unless the nonprofit is operating under a registered trade name.
Withholding Tax on Raffle Prizes. For winnings over $5,000, the nonprofit must withhold 25 percent of the income and report this amount to the IRS on Form W-2G. If the prize is not a cash prize, and the fair market value is over $5,000, the winner must pay 25 percent of the value to the nonprofit, minus the cost of the wager.