Raffles can help nonprofits stand out in the community, find new friends online and grow their current donor base. However, the Internal Revenue Service considers raffles a form of gambling, so there are some important regulations to keep in mind.

To get started, establish a monetary goal to help you determine your ticket price and sales goals. Next, secure prizes for the raffle.

Choosing a Prize

Choosing the right prizes is a crucial step in running a raffle fundraiser. The best prizes are exciting, well-priced and unique to your event. It’s also important to know your audience. For example, if your fundraiser is for cancer research, then an expensive vacation may not appeal to your audience as much as a weekend cabin in the mountains or dinner for two.

Local businesses and individuals are great sources of prize donations. Reach out to your own network and ask for help finding unique or high-value prizes for your raffle. If you don’t have the time to do this, ask the owners of other small businesses in your community—cafes, hairdressers, cinemas and gift shops—as they often have excess inventory they can donate for a good cause.

Remember that raffles require payment or consideration to be entered and differ from sweepstakes, which do not. This difference has regulatory implications. Make sure to clarify this to your donors as it will impact their tax deductions.

Organizing the Event

Raffle fundraisers offer nonprofit organizations a chance to raise thousands of dollars while reaching out to supporters in a unique way. The success of a raffle depends on a variety of factors, including when it is held, the prize, and how many tickets are sold. It also depends on how well volunteers are trained to sell the tickets and whether or not your organization has a permit to hold a raffle.

One popular type of raffle is the 50/50 drawing, in which half of the ticket sales go to the winner and the other half to your organization. This type of fundraising draws people into the event and encourages them to stay until the end to find out if their number is called.

If your organization is holding a 50/50 raffle, recruit volunteers to sell tickets door to door or online. Make sure they are given a specific amount to sell and that their numbers match each other, so the raffle is secure.

Getting the Tickets

To make sure the prize is worth the money and time you put into a raffle, price tickets strategically. Take a look at your current donors and supporters, average gift sizes, trends of giving, list size, demographics and other factors when deciding how much to charge for tickets.

Many states have different regulations for raffles, so be sure to follow them closely. Most require that the ticket stub side has important information, including the organization name, address, phone number and date of the drawing.

Organization members can sell tickets door to door or online. Some organizations also have volunteers who use their social media channels to promote the raffle and solicit donations. Regardless of how tickets are sold, keep track of those who have purchased them by calling or emailing them regularly to remind them of the deadline for turning in their ticket stubs and donations. This will help you avoid lost revenue and build a strong mailing list for future fundraising appeals.

Drawing the Winner

Once your fundraising raffle has generated the money you need for your prize, it’s time to choose a winner. You can hold the drawing alongside another event, such as an auction, or run it online to attract more participants.

Regardless of the method you choose, make sure to announce the winner publicly to keep attendees engaged and to ensure that all tickets are sold before you begin to avoid legal complications. The last thing you want is to award a prize without meeting state regulations that require total ticket sales to exceed the cost of acquiring the item.

A raffle with a unique prize option is one of the easiest ways to draw more attention to your fundraiser. For example, a nonprofit could partner with a local boutique to put together a shopping spree for clothes that are fashionable and on-trend. Then they can raffle those outfits to generate revenue for the charity. If you’re ready to get started, check out our selection of raffle ticket templates and design yours with a few clicks.