Merchandise prizes that are donated to your organization to raffle off are NOT tracked in CGME and do not need ANY data entry into the system. Remember, the merchandise prize reconciliation keeps track of three aspects of the prizes, what you RECEIVE, what you PAY FOR, and what you AWARD.
The tax return schedules have no special locations to track prizes received that you did not pay for. Since you don't have to PAY for them, you don't have to RECEIVE them. Therefore you also don't AWARD them.
You simply make more in net receipts in the game that you played and awarded those prizes because you don't have the expense of paying for the prizes taken out of the equation.
Donated prizes are the best! :)