What it is
A raffle is a drawing in which people buy tickets for a chance to win a prize. Because it combines a payment, a prize and an element of chance, many jurisdictions treat it as a form of gambling, even when the purpose is charitable.
That is why raffle laws are often separate from ordinary fundraising rules. Some places allow raffles only for certain types of organizations, such as recognized nonprofits. Others limit who can run them, how tickets can be sold, or how the proceeds must be used.
Many fundraisers try to avoid the issue by using alternatives like prize drawings with free entry or donation-based giveaways. Whether those alternatives are permitted also depends on local rules, so they are not automatically exempt from review.
How it’s traditionally been approached
Traditionally, schools, churches, clubs and community nonprofits have run raffles at events, with paper tickets, a drum or bucket, and a prize table. Volunteers usually handle the sales and the drawing.
Organizers have typically started by contacting the state agency or local office that oversees charitable gaming, and then checking whether a permit, license, registration or annual report is required. Some places have rules about who may sell tickets, minimum ages, and where tickets may be sold.
Other common considerations include record-keeping, how prizes are acquired, and whether online or out-of-state ticket sales are allowed. Approaches differ by community, and each has worked for different groups.
How the right fundraising consultant may help
The right fundraising consultant may help you think through your options before you commit to a raffle. They may be familiar with how groups like yours have generally approached compliance questions and can help you build a checklist of things to verify.
A first conversation is usually a chance to describe your organization, your goal and your timeline. A consultant may ask about your tax-exempt status, where you plan to sell tickets, and whether you have thought about other event formats. They can often point you toward the right agencies to contact, though they are not a substitute for legal counsel.
Good questions to ask include: What experience do you have with raffles or charitable gaming in my state? How do you approach permit and registration questions? What alternatives might fit our goals? Who should we consult for legal or tax questions? A thoughtful consultant will be clear about what they can and cannot advise on.
The bigger picture
Planning a fundraiser should feel meaningful, not stressful. Worrying about whether a raffle is allowed can weigh on volunteers and organizers, so taking time to check the rules up front may bring real peace of mind.
Clarity about permits, record-keeping and roles can protect your relationships with supporters and your own energy. If the financial or legal side feels overwhelming, it is reasonable to ask for help. Providers.plus may also be a place to explore support related to wellbeing during busy seasons of organizing.
Keep in mind
- Raffle, gaming and charitable-gambling laws vary by state, and often by city or county, and they change over time. Check current state and local rules and any required permit before planning one.
- Charitable solicitation registration requirements also vary by state, so ask whether your organization must register.
- Whether a ticket purchase or donation is tax-deductible depends on the recipient's tax-exempt status and current IRS rules. Confirm with a tax professional rather than assuming.
- Fundraiser.biz is an independent directory, not a professional advisor. A consultant may help, but no result is guaranteed, and legal questions belong with a qualified attorney or the appropriate agency.
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Frequently asked questions
Are raffles legal for fundraisers?
Often they are, but it depends on where you are and who is running the raffle. Many states and localities allow raffles for qualifying nonprofits, sometimes with a permit or registration. Check current state and local rules before planning one.
Do I need a permit to hold a fundraising raffle?
In some places yes, and in others no. Requirements can differ by state, city or county, and may depend on your organization type and the size of the raffle. Contact the relevant state or local office to confirm.
Can an individual run a raffle to raise money?
Many jurisdictions limit raffles to recognized nonprofit or charitable organizations, so an individual may face restrictions. Rules vary, so check locally before selling any tickets.
Can we sell raffle tickets online?
Sometimes, but online sales can raise extra questions about where buyers live and which state's rules apply. Some places restrict or prohibit it. Confirm with the appropriate agency before selling online.
Are raffle ticket purchases tax-deductible?
It depends on the recipient's tax-exempt status and current IRS rules, and ticket purchases often involve the chance to win a prize. Do not assume either way. Ask a tax professional.
How can a fundraising consultant help with raffle questions?
A consultant may help you plan the event, identify what to verify, and consider alternatives. They are not a replacement for an attorney or the regulating agency, but they may help you ask the right questions.
Educational resource. Fundraiser.biz shares general information and connects people with independent fundraising consultants. It is not professional advice. Talk with a qualified professional about your own situation.