Fill Out Your PFD Application, We May Get $3K This Year - P.O.W. Report

Tuesday, January 22, 2019

Fill Out Your PFD Application, We May Get $3K This Year

[Fill out your PFD Application here]

There is a very [good chance] that the PFD this year may be close to $3,000 if Governor Dunleavy has his way. Which is why it's important to fill out the application ASAP so that we can all get our gibs this fall. There is a new addition to the application that all should be aware of. At the end of the application you are asked if you would like to be part of the "Education Raffle," so what is it?


How does the Education Raffle work?

Anyone 18 years old or older, filing for themselves, can choose to donate money from his or her PFD to public education. Donations are made in $100 increments. For every $100, you buy 1 entry into the Education Raffle. For $200, you get 2 entries; for $500, you get 5 entries; up to the point where the final $100 increment is available. Example: A dividend of $1,722 will allow you to purchase 17 entries.The remaining $22 will be paid to you. Each entry goes into a drawing to be drawn by the Revenue Commissioner, or designee.

When will the first drawing take place?

The first drawing will take place between January 1 and January 31st, 2020. The drawing for the raffle will always occur in January thereafter.

How do I know my donation will go to education?

Legislation that enacted the Education Raffle states that education will not receive less funds as a result of this additional income. It will simply add to the funding that they already will be receiving through legislative appropriations. Your funds will benefit a general education fund not broken out by district.

Can I buy extra Education Raffle entries with money not from my PFD?

No. Only money from your PFD may be used to buy Education Raffle entries.

Can I withdraw my donation if I change my mind after I submit my application?

No. Once your initial application has been submitted, you will not be able to withdraw your donation.

How much state money does it take to run the raffle program?
$35,000 to get it started. After start-up, the system is designed to be self-sustaining.

How much of my money goes to public education?
50% of all donations go directly to public education that year.

25% of all donations go into a new education endowment fund.

How much money goes into the raffle fund?

25% of all donations are placed in the raffle fund.

How are the prizes paid out?

Four prizes are paid out annually. First prize is 8% of the raffle fund. Second prize is 4%; third prize is 2%; fourth prize is 1%. The remaining 85% of the fund will grow the fund for future year prize money.

What is an example of a winning entry?

If the Education Raffle has, in its first year of existence, 5,100 contributions, it will end up with a total of $510,000 to be disbursed. This means that $255,000 will go directly to public education that year, $127,500 will go into a fund for future education support, and $127,500 will go into the “Education Raffle” as prize money.

First prize will receive $10,200

Second prize will receive $5,100

Third prize will receive $2,550

Fourth prize will receive $1,275

The remaining amount of $108,375 will stay in the raffle fund for the following year, increasing the prize money each year.

How will I claim these on my taxes?

The PFD Division recommends that you consult your tax professional for any questions related to the payment of taxes.

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