Raffles are another easy fundraising idea, with a very simple premise: buy raffle tickets at a very low cost, sell them, and then pick a winner. The winner may receive a portion of the ticket sales, or another prize.

Federal Raffle Laws

Due to federal laws applying to lotteries and sweepstakes, it is illegal for individuals and for-profit businesses to hold raffles. Thus, raffles are only allowed for nonprofit groups and organizations.

Other regulations apply to raffles, as a type of lottery:

• No one under the age of 18 is permitted to participate in raffles or win raffle prizes.
• Ticket prices must be consistent throughout a single roll of tickets.
• You may be required to list prizes directly on the tickets.

Read more about the IRS guidelines regarding raffles.

State Raffle Laws

In some states, lotteries are illegal. In those states, raffles are also not permitted under any circumstances. In other states, a permit may be required before you can hold a fundraising raffle. As stated above, federal law permits raffles only for nonprofit fundraising purposes. If you do not have a certified nonprofit organization, you may not hold a fundraising raffle.

Raffle Tickets

Raffle tickets usually come in double rolls, so that each ticket has one duplicate. You give one to the ticket purchaser and keep the other. If the winner will be present, you can simply read the number from the winning ticket. If the winner does not need to be present, you need to get contact information from the entrants so you can notify the winner.

Raffle laws may require that you list major raffle prizes directly on your raffle tickets. There are also requirements regarding ticket pricing. Specifically, raffle ticket pricing must be consistent throughout a roll, so you must use a separate roll of tickets if you want to offer a discount for quantity purchases. For example, if your tickets are 5 for $10, they must also be $2 each.

Raffle Prizes

The prize for winning a raffle can be either a percentage of the raffle proceeds, or virtually any other prize. You may want to solicit a donation for your raffle prize; this way you can keep 100% of the profits. Before you start selling tickets, decide what the prize will be. If you haven’t picked a prize, nobody will want to buy tickets.

50/50

A 50/50 is a raffle in which the winner receives half of the raffle proceeds. This and other raffles can be fundraisers in themselves, or they can serve as easy ways to boost the profits of larger fundaising events.