Congratulations! You’ve won! You’ve announced a text sweepstakes winner but unfortunately that person isn’t able to collect the prize. So what happens now?
Here are some of the reasons why a winner might turn away your prize and what to do about it.
I Didn’t Believe That I Won.
As part of your promotion, make sure that you explain to entrants how you plan to notify them if they win and how and when they should respond. You should also confirm with them that they did indeed enter your text sweepstakes when you notify them to show them that your promotion is legitimate.
How Much Do I Have to Pay in Taxes?
The winner’s tax liability will depend on the value of the prize. However, given the fact that every person’s tax situation is unique, don’t answer this question.
The best you can do is to recommend that they discuss the matter with an accountant. If they aren’t interested in the prize because of potential tax liability, let them know that they can forfeit it.
I Won But I Want Someone Else to Have the Prize.
In your official rules, you must state whether or not if you want the prize to be transferable. In the majority of text sweepstakes campaigns, the sponsors do not allow the prizes to be transferred. However, you may want to consider offering a cash option if the winner can’t or won’t accept the prize offered.
What Do the Official Rules Say?
Now that you are certain that you won’t be able to deliver the prize to the potential winner, take a look at your official rules. Regardless of the outcome you must always follow the official rules for your promotion.
As a result, you probably won’t be allowed to substitute cash for the prize. For example, if you offered a vacation as a prize, you will have to notify the potential winner that they will have to forfeit the prize if they are unable to travel.
While you’ll never be able to anticipate all of the reasons why a text sweepstakes winner might turn down a prize, being prepared for the most common ones is the best place to start.
Make sure your official rules spell out exactly what should happen in any scenario where the winner might not be able to collect the prize.
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