Omaze can be described as an online marketplace on which users can make donations to charities and also win various prizes and experiences. It’s an innovative approach to fundraising. According to the company, the users have raised more than 150 million dollars, and have benefited more than 350 charitable organizations. The charities are spread all over the world. These charities are major credited non-profit organizations such as UNICEF, After-School All-Stars, Julia’s House, Product Red and Make-A-Wish Foundation.
Donations are not required to enter a contest, but they earn extra contest entries and other perks. Users can decide what cause they’d like to contribute to. Every contest comes with its distinct prize, from luxury cars to once-in-a-lifetime experience.
Before you continue, you may want to watch this video by The Entrepreneur on YouTube that gives a quick review. Afterward, you will want to read the rest of our article for a more comprehensive review of Omaze.
What is the process behind Omaze work?
Does Omaze Cover Taxes
Omaze believes that everyone deserves the opportunity to take part in fundraising. Traditionally, charitable organizations usually relied on fundraisers where only the famous and wealthy attended. Omaze set out to open up auctions for charity through its unique fundraising method. It allows everyday citizens to give to the charity they choose for as little as $10.
There are two ways to enter. One is by donating, and the other is by participating for no cost. You are able to participate in any contest without donating, but you earn additional entries based on how much you contribute. The more you donate, the more prizes you’ll win.
To donate, select “Enter Now” from the Experience or Prize page on the website. Choose a amount to donate and follow the instructions to fill in your details. You are able to make donations as often as you’d like. There is however a maximum Entry limit that varies depending upon the amount of prize.
For a chance to win for free To enter for free, visit the Experience or Prize page on the website. Select the “enter without contributing link” and follow the steps. You’ll need to fill out the form. Upon submitting the form, you will be awarded a certain amount of entries. You may submit the form multiple times as you like, but again you will be subject to a certain entry limit.
Omaze has faced criticism about what percentage of donation goes to the charity. For the most expensive prizes, only 10 to 15 percent of the proceeds go to charity. The company has responded with the statement that 10% a significant amount. The remaining donation is used to cover expenses for marketing and operational costs to keep them running. The most important thing is that people are enticed to give because of attractive prizes.
For prizes that are less costly The company says that 60 percent of the prize goes to charity.
Donations made on the site are directly donated into Charities Aid Foundation America (CAF America). It’s a nonprofit organization which has partnered with Omaze to make fundraising simple secure, efficient, and safe. CAFA utilizes donations to help fund grants for charitable organisations.
Omaze offers a variety of amazing prizes, which they refer to as experiences. The prizes include luxury cars as well as dream homes, a chance to meet your favorite celeb or have a unique travel experience.
Here are some examples of past and current prizes offered by Omaze:
- The chance to win an enviable multimillion dollar Miami dream home
- A vacation in Japan specifically designed for you
- An unforgettable safari and stay at Giraffe Manor in Kenya
- A chance to win two seats on one of the first Virgin Galactic flights to space
- Private meet and meet and greet for Dwayne “The Rock” Johnson
- A luxurious trip to a wellness resort in Thailand
- First-class plane tickets to anywhere in the world
- The chance to win luxurious automobiles and other vehicles
Omaze offers constantly new promotions and attractive prizes. You can check their website to view more prizes with the information. You can also see previous prizes as well as the winners. For previous contests you can also view the amount that the charity received.
Who started Omaze?
Omaze was founded in 2012 in 2012 by Ryan Cummins and Matt Pohlson. As per the site, they had the idea when they went to a charity auction. The item up for bidding was their dream experience which included a basketball match and dinner with Magic Johnson. But, the bidding was to the point that they were outbid. The prize was just $15,000.
The two couldn’t figure out why such a huge prize only brought in a small amount to support a worthy cause. They also thought that the method of fundraising was restricted to those who are wealthy. They felt that extraordinary experiences such as this shouldn’t be restricted to a small number of wealthy people.
Then they came up with an entirely new method of fundraising that would be available to a significant number of people.
The fundraising will be accessible online, so anyone could participate. It wouldn’t take much funds to participate and increase participation and raise more funds in support of the organization.
They think that charities should feel better about marketing themselves through the platform, since it’s an important cause. The platform lets charities connect with a wider audience in an attractive way to raise more funds.
Is Omaze legitimate?
While the business has been the subject of some criticism, they appear that they are indeed legitimate. As of now, they’ve collected more than $100 million for charity , and have distributed the prizes to participants as promised. A lot of big-name celebrities have also endorsed and advocated on behalf of the organization.
A number of winners have also talked about the prizes they have won. They also have a video on Omaze’s official Omaze Youtube channel.
Omaze is also certified as a member of The Better Business Bureau with an A+ rating. Does Omaze Cover Taxes
Because it’s a not-for-profit company, Omaze takes around 20% of the donations. If you wish to have all of your donations to be donated to a non-profit. In this situation, you may decide to donate direct to the nonprofit or charity instead. The best part of Omaze can be that you have the chance to contribute and, simultaneously you can receive a wonderful experience. This makes it a great attraction to a wider range of people. If you’re seeking unique experiences Then Omaze is a fantastic chance.
Cost and Price Plans
Omaze allows you to donate just $10. As the donation amount increases, the percentage of entries also increases, and the equivalent for 1 entry decreases. For instance, a $150 donation equals 2000 entries, which is 1 entry for every 7 cents donated. Does Omaze Cover Taxes
Here are the donations amounts with the equivalent quantity of entries
- $10 = 20 entries
- $25 = 250 entries (most popular option according to the website)
- $50 = 500 entries
- 100$ = 1200 entry
- $1000 = 2000 entries
According to Omaze, their company takes around 12%-20% of the net earnings. The money is used to fund expenses for operations, like marketing, content creation, and processing fees. A majority of the funds go to charity.
To be more precise, here’s how it differs between non-celebrity prizes and celebrity prizes. For prizes that are awarded to celebrities that are usually more affordable, 60% of the money goes to the charity and 25 percent goes to Omaze. For prizes that are more costly, such as cars, vacations or cash 15percent of donation goes to charity and 65% to 75% goes to Omaze.
Omaze currently doesn’t offer refunds because the money is donated to charitable causes. However, if you have any questions with your transaction, you should contact Customer Service as soon as possible.
Customer Service Contact Info
Suppose you have any questions, concerns or issues. In that case you can submit your concerns directly to their website through the Support Center and Submit a Request link. There is also a wealth of details and frequently asked questions in the Support Center.
Omaze is an online platform for fundraising that lets people donate to charitable organizations to be eligible to win prizes that are unique as well as experiences. It’s a legitimate organization which has been in operation for many years. It has assisted numerous charities reach their goals by raising funds for them. Its unique fundraising model gives everyone the opportunity to enjoy amazing once-in-a-lifetime experiences.
Omaze is a different way to make a donation to charities. However, it has received a lot of criticism for how much money actually goes to charity. However, it’s understandable since Omaze is a business, so it’s a for-profit organization. If your goal is to just donate money to an organization and ensure that the entire amount goes to them, then you can donate direct to charity. But if you’re interested in the amazing prizes offered by Omaze you can donate to Omaze instead. You get the chance to be the winner of a prize and also donate to a worthy cause.
FAQS Does Omaze Cover Taxes
Where is Omaze based?
Omaze is located within Los Angeles, California.
Can my tax-deductible contribution be deducted?
All Omaze donations go through Charities Aid FoundatAmerica ion (CAFA). Since CAFA is an US charity and all donations made by US donors via Omaze are tax-deductible. Omaze platform are tax-deductible in the amount the law allows. However, if your contribution is accompanied by an experience-based perk that is worth more than the experience perk will be deducted. If you give $100 and earn an experience perk of 75 dollars, the tax-deductible contribution will be $25.
Do you know of any Omaze frauds?
While Omaze has been criticized by many people online as a fraud however, the company is completely authentic. It can raise money for the charities involved and award participants as promised. To protect yourself, just make sure to donate your money through the official Omaze website only. Double-check to see if the website is genuine or not before donating your money.
What are the odds of winning?
The more you contribute the more likely you are of winning, as a greater donation equals a greater number of entries. But, you are able to participate without contributing money and still be eligible for a specific amount of entries.
How can they verify that they have a winner?
After the contest is over, a potential winner is randomly selected using an encrypted and secure random number generator. Following the random drawing process, the Omaze team completes the winner confirmation process. More information about the procedure through their official website.
How can they get in touch with them? to announce winners?
An Omaze representative notifies the winner of the contest via email. The potential winner has 24 hours to respond to the initial email. The Omaze could follow up with a planned video conference as well. After a winner is been confirmed and responded to their initial emails, they need to sign paperwork sent to them by an Events Team as part of the process of confirming the winner.
Do note Omaze does not contact winners via social media. Instead, it will contact them by email.
How does Omaze earn its money?
Omaze is a non-profit company. Omaze is able to collect a 20% fee on net raises from their campaigns. To ensure they stay functioning the fee can be used to fund operational costs, such as advertisements, content creation, and processing fees.