This printable letter rejecting a prize includes a section for inquiring if the prize is transferrable to friends or family.
Free to download and print.
Dear {Name},
I was so excited to learn that I won the prize of {item/tickets/trip}. Unfortunately, my elation was replaced with dismay when I realized that I {have a scheduling conflict/am unable to meet conditions/can't afford taxes/etc.}.
By any chance, is the prize transferable? If so, I would welcome the opportunity to pass it along to my {friend/family member/business associate}.
Please let me know how you intend to dispense of the prize. Thanks again for the opportunity. I'm sad that I am forced to reject it.
Sincerely,
{Name}