12th Annual Palos Verdes

Win Your Dream House Raffle

RAFFLE RULES AND CONDITIONS (“Rules”)

The Grand Prize Drawing for the Palos Verdes Art Center, Beverly G. Alpay Center for Arts Education (PVAC) 2014 “California Dreaming” Win Your Dream House Raffle will be held on   Friday, May 30, 2014, beginning at 5:30 p.m., at Palos Verdes Art Center, 5504 W. Crestridge Road, Rancho Palos Verdes, California 90275. Tickets will not be sold after 8:00 p.m., Friday, May 23, 2014. Tickets may sell out before that time. Harrington Group, an independent accounting firm, will supervise all drawings. All drawings for prizes are open to the public, but the winner need not be present to win (except for door prizes).

This year, the grand prize is (a) a home and property located in Palos Verdes Estates, California, furnishings not included, valued at $1,925,000.00 from Shorewood Realtors, Palos Verdes Estates, on behalf of the owners, and $1,000,000 in cash (collectively, the “2014 Dream House”) or (b) $2,000,000 in cash.  In addition, the respective winners of the following prizes will have the option to choose between: (1) a 2014 Mini Cooper from South Bay Mini (optional features to be determined by winner up to a maximum total value of $30,000) or a cash prize of $25,000, (2) a 2014 BMW 428i from South Bay BMW (optional features to be determined by winner up to a maximum total value of $50,000) or a cash prize of $40,000, (3) a trip for two to Cuba (as generally described below in the Grand Prize Options) or a cash prize of $5,000, and (4) 5 prizes in the Grand Prize drawing of an Apple iPad Air tablets or $500 in cash (winners of the other 40 iPad prizes in the two Early Bird drawings will not have the option to accept cash in lieu of the iPad).

Following each drawing, the list of winners (names and cities of residence), will be published on the PVAC website and posted at the Art Center or may be obtained by sending a written request plus a stamped self-addressed envelope to: Palos Verdes Art Center, 5504 W. Crestridge Road, Rancho Palos Verdes, California 90275.

Only a maximum of 40,000 tickets will be offered for sale.  If at least 35,000 raffle tickets are sold, the Grand Prize winner shall have the option until 3:00 p.m. June 6, 2014 to choose between (a) the 2014 Dream House, or (b) the $2,000,000 cash prize. The transfer of the ownership of the 2014 Dream House is subject to terms and conditions and escrow instructions normal and customary for the transfer of real property in the Palos Verdes area.

The IRS has taken the position that amounts paid for chances in raffles, lotteries or similar drawings for valuable prizes are not gifts, and consequently do not qualify as deductible charitable contributions.  Prize winners are responsible for the payment of all local, state and federal taxes resulting from the income attributable to the receipt of any prizes, and should consult their professional legal and accounting advisors regarding the tax effects of their respective choices.

TICKETS

Tickets are $150.00 each. You may buy as many available tickets as you wish. All sales transactions are final. No payments will be refunded.

To order tickets, call 310-541-2035 or 310-541-2479. Or download the order form from pvartcenter.org and fax it to 310-541-0248 or 310-541-4370 or mail it to Palos Verdes Art Center 2014 Win Your Dream House Raffle, 5504 W. Crestridge Road, Rancho Palos Verdes, California 90275. Entries must include payment or credit card information (Visa, MasterCard, Discover or American Express) to be eligible. Email orders will not be accepted.

More than one name may be entered on the ticket to indicate that any prize won is to be shared. Only the names provided on the ticket will be eligible to receive prizes. Unless otherwise designated, winnings will be divided equally among all names on the winning ticket. On prize amounts of $500 or less, PVAC, at its option, may write only one check to the person named first on the ticket. That person will then be responsible for making all decisions regarding the winner’s options on behalf of, and dividing the prize among, the other persons listed. Multiple tickets must be purchased at the same time and be in the same name(s) to be eligible for the Multiple Ticket Drawings. There will be a special Multiple Ticket Drawing at each Early Bird Drawing and at the Grand Prize Drawing. Only purchased multiple tickets are eligible for those drawings.

GENERAL RULES

By entering this raffle, each entrant:

a)      accepts and agrees to be bound by all the rules, limitations and restrictions set forth herein, at pvartcenter.org/raffle/2014/rules.html.  

b)      agrees that their names, resident city, and/or their likenesses may be disclosed to and used by the news media and may otherwise be used by PVAC for publicity purposes and in lists of prize winners (name and city) to be published on the PVAC website.

c)      releases PVAC, its trustees, officers, employees and agents from any and all liability for injuries, losses or damages of any kind or caused by or resulting from acceptance, possession and use or misuse of any prize. Each winner also agrees to indemnify and hold PVAC harmless from any and all losses, damages, rights, claims and actions of any kind rising in connection with or as a result of the winner’s choice of winner options and acceptance or use of any prize.

d)      understands and agrees that entrant must pay at the time of receipt of the prize, by means of cash payment or withholding from cash prizes, estimated federal income tax in the amount of 25% of the prize value on all prizes having a value in excess of $5,000.

To qualify for any drawing, ticket orders must be received and/or purchased by the indicated deadline. Any orders received after the stated deadline will be held for the next applicable drawing. PVAC assumes no responsibility for lost, late, misdirected or non-delivered mail.

If less than 4,000 tickets are sold by April 4, 2014, 8:00 pm, PVAC, in its sole discretion, may end the raffle at the first Early Bird Drawing. The Multiple Ticket Prize and Early Bird cash only prizes 2-5 (but not the Grand Prize) will be awarded for that drawing. The Grand Prize drawing will be held at that time, but the winner will receive, in lieu of the stated Grand Prize, 50% of the net raffle proceeds, less appropriate and required income taxes (federal, state and/or local). Net raffle proceeds are defined as the balance of funds left after paying all other prizes and all raffle expenses. No further raffle drawings will be held.

Other rules and regulations may apply. Please contact PVAC if you have questions. PVAC’s interpretation and application of the rules and regulations shall be final.

PVAC reserves the right to reject any entry form that is submitted with payment that does not constitute “good funds” or is defective or physically altered. Prior to the Grand Prize drawing, PVAC will make a reasonable effort to notify the individual and/or entity that submits such an entry form or one which has been rejected because the credit card or check did not clear that the entry has been rejected.

This Raffle is not an offer and is void in any jurisdiction where such raffles are prohibited or where applicable registration requirements have not been fully satisfied.

EARLY BIRD DRAWINGS

Early ticket purchases will be included in multiple drawings all of which will be held at PVAC, 5504 W. Crestridge Road, Rancho Palos Verdes, California 90275. You may attend any or all of these drawings.

Tickets purchased by 8:00 p.m. Friday, April 4, 2014, will be eligible for the first Early Bird Drawing on Thursday April 10, 2014 at approximately 5:30 p.m.  Multiple tickets purchased by the stated deadlines will be eligible for both Early Bird Drawing and the Multiple Ticket Drawing on that day. The following format will be used:

  • The Multiple Ticket Drawing will be held first. All tickets that qualify for the Multiple Ticket drawing will be placed in the drum, a winner will be drawn. The winning Multiple Ticket Drawing ticket, along with all other tickets will be placed in the drum for the rest of the drawings.
  • All winning tickets for prizes drawn prior to prize 5 will be copied and, will then be placed in the drum for the drawing of prizes 5 through 2, in reverse order.
  • The winning tickets for prizes 5 through 2 will then be copied and returned to the drum, with all the other tickets, for the Early Bird First Prize Drawing.

The same format will be followed for the second Early Bird Drawing. All tickets purchased by 8:00 p.m. Friday, May 2, 2014 (including all tickets purchased before the April 10 drawing) will be included in the second Early Bird Drawing on Friday May 9, 2014 at approximately 5:30 p.m. at PVAC.

GRAND PRIZE DRAWING

Drawing Format:   A maximum of 40,000 tickets (including Early Bird tickets) will be offered for sale for the Grand Prize Drawing. The deadline for purchasing tickets for the Grand Prize Drawing is 8:00 p.m. Friday, May 23, 2014. All tickets purchased by that time will be entered in multiple drawings on May 30, 2014, which will be conducted as follows:

  • The Multiple Ticket Drawing will be held first, at approximately 1:00 p.m.
  • The winning ticket from the Multiple Ticket Drawing, plus all other eligible tickets, including winning and non-winning tickets from the April 10 and May 9 drawings will then be placed in the drum for the drawing of $20 Prizes will be in reverse order. The number of $20 prizes will be set at one $20 prize for every 50 tickets sold. This drawing will also be held at 1:00 pm and a list will be posted prior to the Grand Prize drawing.
  • All winning tickets for prizes drawn prior to prize 15 will be copied and, will then be placed in the drum for the drawing of prizes 15 through 2, in reverse order.  The drawing will be held at approximately 5:00 p.m.
  • The winning tickets for prizes 15 through 2 will then be copied and returned to the drum, with all the other tickets, for the Grand Prize Drawing.

Grand Prize Options:  If fewer than 35,000 tickets are sold as of 8 p.m. Monday, May 23, 2014, the raffle will be held as scheduled, and all prizes other than the Grand Prize will be awarded as advertised; and the Grand Prize winner will receive a 50% share of the net raffle proceeds, not to exceed $2,000,000, of the net raffle proceeds (less withholding for federal and/or state income taxes). Net raffle proceeds are defined as the balance of funds left after paying all other prizes and all raffle expenses.

If at least 35,000 tickets are sold by the May 23, 2014 deadline, the Grand Prize winner will have the choice of (a) the 2014 Dream House (including the $1,000,000 cash), or (b) the $2,000,000 cash prize. The Grand Prize winner must make an election in writing between the 2014 Dream House or the cash prize no later than 3:00 p.m. Friday, June 6, 2014. Such choice is in the winner’s sole discretion.  The Grand Prize winner is strongly urged to seek professional legal and accounting advice on the tax effects of election as to the respective choices.

If the Grand Prize winner elects to receive the house prize, the 2014 Dream House will be accepted by the Grand Prize winner “as is” without warranty except as otherwise expressly set for the in the terms and conditions of transfer and escrow instructions. PVAC does not provide any guarantee or warranty, expressed or implied, in connection with the 2014 Dream House, and accepts no liability regarding the construction or condition of the premises. At the time of Closing, all federal, state and local tax income taxes based on the appraised value of the 2014 Dream House (including the cash portion) will be due from the Grand Prize winner.

 

If the Grand Prize winner fails to make an election by the June 6, 2014 deadline, or makes a timely election but fails to close escrow by June 27, 2014, he or she will be conclusively deemed to have elected the $2,000,000 cash prize option.

 

Explore Cuba: The Explore Cuba prize consists of a trip to Cuba for two October 24-31, 2014, that will include 5 nights in Havana’s 4-star Hotel Telegafo or Hotel Sevilla and 2 nights in Trinidad del Mar Hotel, an all-inclusive beachfront resort, each based on double occupancy.  During the day, you will see the colonial and art deco architecture of old Havana, visit the city of Trinidad founded in 1514, and Cienfuegos, called the “Pearl of the South” and considered by many the prettiest city in Cuba. The trip package includes (a) 15 meals (4 dinners, 4 lunches and 7 breakfasts), (b) walking tours, (c) museum admissions, (d) a Cuban guide/chauffeur and deluxe coach transportation within Cuba, and (e) visa fees, medical insurance, international air from Miami-Havana-Miami and airport tax in Miami. As an alternative, the winner may elect to accept a cash prize of $5,000 in lieu of the Explore Cuba trip provided such election is made prior to June 6, 2014.

Private Cocktail and Dinner Party:  The specifics of the private cocktail party and sit-down dinner shall be determined by mutual agreement between the winner and Thank Goodness It’s Sophia, the master caterer for PVAC.  The event will include a four course meal for up to 24 people, wine, taxes and gratuity.  Reservations must be made at least 60 days prior to the proposed event; and the event must be scheduled prior to May 30, 2015 (within 12 months of the drawing), or the option expires and the prize will be deemed forfeited. The Private Cocktail and Dinner Party prize cannot be resold and is non-transferable. Dinner Package expires 12 months from the drawing date (i.e., May 30, 2015).

Limitation of PVAC Responsibilities

It is the responsibility of the Grand Prize winner to determine, to his or her satisfaction, the value of the respective Grand Prize options, and the tax effect to them, in light of their personal financial circumstances.  PVAC provides no guarantee or warranty (a) as to the value of any property, including the 2014 Dream House, (b) whether the Grand Prize winner will be able to successfully conclude a satisfactory agreement with the Seller on the terms and conditions of transfer, (c) that the Internal Revenue Service (IRS) or the California Franchise Tax Board will accept the PVAC stated value as the value of the prize for the purposes of determining any income tax payable, or (d) that the 2014 Dream House can be subsequently sold for its appraised value. 

PVAC has no participation in or liability with respect to any negotiations regarding the acquisition of the 2014 Dream House. If the Grand Prize winner fails for any reason to reach an agreement with Shorewood Realtors and Seller and/or consummate the purchase of the 2014 Dream House prior to June 27, 2014, then the Grand Prize winner will be deemed to have elected the $2,000,000 cash option and the appropriate amount, giving effect to the amount of withholding already paid, will be delivered to the Grand Prize winner.

Payment of all appropriate and required federal, state and local taxes and escrow fees and expenses is the responsibility of the Grand Prize winner. If the cash prize is selected, such taxes will be withheld by PVAC in accordance with federal law. If the 2014 Dream House is chosen, all federal income taxes based on the $1,925,000.00 value attributed to the house plus the additional $1,000,000 cash must be paid by the Grand Prize winner prior to the transfer of title to the house. The winner, if they chose the house, will have $1,925,000 put into an escrow account for the house with the escrow agent designated by Shorewood Realtors and what is left of the one million cash prize after deducting taxes will be paid to the winner. If the winner choses the cash prize of 2 million, a check will be paid after appropriate taxes are withheld.  The taxes applicable to the 2014 Dream House will differ from the taxes applicable to the $2,000,000 cash prize, so entrants are strongly urged to consult with their professional accounting and legal advisers before making a decision. 

ELIGIBILITY

Anyone 18 years of age or older may enter. Employees and members of the Board of Trustees of PVAC and Harrington Group, their spouses and children are excluded from participating. An affidavit of eligibility may be required from prize winners. Any offer to participate is void where prohibited by law.

Winners will need to show proof of a Social Security or Taxpayer ID consistent with the name(s) on the ticket(s). Out of country residents need to show proof of an equivalent Taxpayer ID from their resident country. Either the form or ID must be presented to PVAC within 120 days of the drawing or the winner’s prize will be considered a donation to the Art Center.  

DISPUTES

Any dispute arising with respect to this Raffle shall be resolved by binding arbitration conducted in Los Angeles County, California in accordance with the Rules of the American Arbitration Association. The decision of such arbitration shall be final and no appeal may be taken therefrom.

REGISTRATION WITH THE STATE OF CALIFORNIA

By letter from the Attorney General’s office, the Palos Verdes Art Center has re-registered with the Department of Justice under Raffle Registration Number R-1201 and is authorized to conduct raffles in California pursuant to the provisions of Penal Code section 320.5, for the raffle period which begins September 1, 2013 and ends August 31, 2014.

Since 1931, the Palos Verdes Art Center, Beverly G. Alpay Center for Arts Education, a non-profit 501(c)3 community visual arts organization, has inspired adults and children to create, appreciate and celebrate art.  PVAC 2014 “California Dreaming” Win Your Dream House Raffle proceeds help fund exhibition, education and outreach programs making visual arts available, accessible and affordable.