How to Run a Raffle: Everything You Need for Success

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Learn how to sell tickets, find great prizes, and draw a winner
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A raffle is a type of contest in which participants purchase tickets in exchange for chances to win a prize through a random drawing. It’s a great fundraising method for nonprofits, schools, and community events. We’ve compiled a helpful guide on how to do a raffle, from gathering prizes and selling tickets to having a fun, fair drawing.

How does a raffle work?

A raffle is a type of lottery often used to raise money. People buy tickets with a unique number attached, and all of the tickets are pooled together. At the end of the raffle, the event organizers randomly select a winning ticket via a drawing. Whoever bought the corresponding ticket wins the prize!

Section 1 of 3:

Organizing a Raffle

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  1. Visit the websites of your local government regulatory agencies or call their offices to make sure your organization can legally hold a raffle. Your state may prohibit raffles. Other states place regulations on how many raffles non-profit organizations can conduct per year and what prizes are allowed. In many states, non-profits must apply for a permit or raffle license to conduct their raffle since it’s technically considered a type of gambling. [1]
    • If your nonprofit employs an attorney, consult with them to see if they’re familiar with the state’s policies on raffles.
  2. 2
    Decide when and where to hold your raffle. Most raffle drawings are held in person during events. That way, you can sell raffle tickets to attendees and build excitement as everyone awaits the drawing and announcement of the winner. If you’re holding an online raffle, you still have to choose a deadline for buying tickets and a time to hold the drawing. [2]
    • Build hype around the raffle by posting about the potential prizes on social media and including instructions on when and where tickets will be sold.
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  3. All raffles promise at least one lucky winner a prize after the drawing. You can get local businesses to donate prizes as a tax write-off. [3] There may be more than one raffle contest prize, or even prize levels (first, second, third, etc.) based on the order of the draw.
    • Gift certificates at popular stores make great prizes. That way, you're giving out a prize, but in reality, the winner is picking out their own prize at the store.
    • Avoid prizes that are tightly regulated, such as alcohol, tobacco, and firearms.
    • Pay attention to the laws around reporting raffle winnings to the IRS. Prizes valued at $600 or more or 300 times the amount of the wager (ticket cost) must be reported to the IRS using Form W-2G. [4]
  4. You can use your favorite word processor to print DIY raffle tickets. On one side of the ticket (the stub side), list the organization name, address, and phone number. Include the raffle event name and drawing date. On the opposite side of the ticket, provide spaces for participants to fill in their information: participant name, address, phone number, and email address. [5]
    • You can also simply order raffle tickets online. Get a double roll so ticket purchasers can keep one ticket, and you can place the other with their information into the random drawing.
    • If you’re holding an online raffle drawing without tickets, use a platform like Zeffy or RallyUp.
    • Tickets may or may not have numbers on them. Some state regulations require numbers, so look into the rules for your particular state before having tickets printed.
  5. 5
    Price your raffle tickets appropriately. Consider the value of the raffle prizes, how much money you hope to raise, and the wealth of your potential ticket buyers when pricing your tickets. It’s common to price tickets for a raffle targeted at the general public at $2 per ticket or $5 for 3 tickets. [6]
    • If you’re a nonprofit running a raffle as a fundraiser, set a goal for the amount you want to raise by deciding what impact you want to have. For example, if it costs $100 to help one person, you might set a goal of $10,000 to help 100 people, explains digital fundraising and crowdfunding expert Rob Wu.
    • Once you have a goal, you can create a story that will encourage people to buy tickets as a way to donate to your charitable cause.
  6. Have each purchaser fill in their contact information, either on the ticket itself or on a form, along with their ticket number. Place the ticket they purchase into a box or other container from which the winning ticket will be drawn. There are many ways to sell your raffle contest tickets:
    • Door to door. Knock on doors and invite people to participate.
    • Online. Promoting the raffle online is a good way to reach a broad audience that doesn't require a lot of footwork, but you need to check state regulations to make sure Internet raffle contest marketing fits inside governing policy.
    • Storefronts. Local shops and boutiques, especially those donating prizes, may be willing to let you post flyers in their windows or on their doors advertising the raffle.
    • Print ads. Inexpensive ads in local newspapers and lifestyle magazines are an effective way to get the community involved.
    • Booths. Booths outside of local stores or at art shows, carnivals, and festivals are a good way to draw raffle participants.
    • Fundraising event. Sell tickets for the raffle contest at the actual event where the raffle drawing is to occur.
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Section 2 of 3:

Conducting the Raffle Drawing

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  1. Do the drawing toward the end of the fundraising event, after you have sold as many raffle tickets as possible. First, thank everyone who donated prizes, bought tickets, or sponsored the event. [7] Then, have a designated person draw from the pool of raffle tickets without looking. Announce either the winner's name or the winning ticket number.
    • Keep the box with the tickets in it at a secure location to avoid cheating. Believe it or not, sometimes people try to cheat at nonprofit raffles by adding fake tickets.
    • Mix the tickets up so that the drawing isn't biased in favor of tickets that were placed in the box earlier or later. Shake it up.
  2. Use the contact information that they filled out on the raffle ticket to reach out to them. Typically, you'll need to exercise due diligence by contacting the winner by phone and certified letter, and let them know in your communications how long they have to claim the prize. Inform the winners if they have to report their winnings to the IRS and how to do so. [8]
    • Check local and state/provincial laws for information on how to contact winners and how much time you should give them to claim their prize. Make this time limit clear when you contact the winner.
    • In some cases, winners might be required to be there in person. If that's the case, make sure it's spelled out in the rules for entering the raffle.
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Section 3 of 3:

Types of Nonprofit Raffles

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  1. 1
    50/50 Raffle In a 50/50 raffle, instead of offering a prize, the money raised from ticket sales is the prize. Whoever holds the winning ticket when it’s drawn splits the ticket sales earnings in half with the nonprofit. This kind of raffle is ideal if you plan to sell many tickets. People may not mind buying raffle tickets at a higher price, either. [9]
    • Check your state’s rules and regulations to see if you can hold this type of raffle.
    • Remember that prizes over $600 or 300 times the amount of the wager (ticket cost) must be reported to the IRS, and you must withhold 25% of winnings over $5,000 in value. [10]
  2. 2
    Reverse Raffle In a reverse raffle, a limited number of tickets are sold for a high price, such as $100 each. The nonprofit keeps two-thirds of the funds, while the winner of the raffle gets the remaining one-third. When it’s time for the drawing, every ticket is drawn except one. The one that wasn’t drawn is the winner—hence why it’s called a reverse raffle. [11]
    • The drawing is suspenseful and fun for entrants, but you have to limit the number of tickets you sell so it doesn’t go on forever.
  3. 3
    Tricky Tray Raffle During a tricky tray raffle, guests buy raffle tickets when they arrive at the event. Then, they roam the room and look at the prizes. They can “bid” on prizes by placing their raffle tickets in the jars in front of each item. They might place tickets in multiple jars or place all their tickets in one jar to boost their odds. At the end of the night, an organizer randomly draws a winning ticket from each bowl. [12]
    • This type of raffle was formerly known as a Chinese auction. This term is now recognized as derogatory. Alternative names like tricky tray raffle, penny social, or chance auction are now used instead. [13]
  4. 4
    Calendar Raffle To hold a calendar raffle, you create and print calendars according to state guidelines. People who purchase a raffle ticket receive the calendar, which lists the days on which raffle tickets are to be drawn and the prizes awarded each day. Usually, these are cash prizes. These kinds of raffles are enticing because there are multiple chances to win over the course of a week or month. [14]
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Community Q&A

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  • Question
    Should I put the winning raffle ticket back in the box for the next prize?
    Community Answer
    No. Nobody likes seeing a person win twice with only one ticket. Even if the chances are unlikely, it's very unsatisfying to other people who have purchased a ticket.
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  • Question
    Can the person running the raffle be in the drawing?
    Community Answer
    Generally no, people could accuse you of cheating if you win, but if it is your raffle, you get to make up the rules!
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  • Question
    What is needed for a school trip's fundraising raffle?
    Community Answer
    You will need prizes that adults are into, so you get a wider audience.
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      Tips

      • Consider having different levels of prizes. For example, the first ticket drawn wins the "grand prize." The second ticket drawn wins a lesser prize, and so on. Having more chances to win may entice more people to enter.
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      • If your organization plans to hold a raffle on a regular basis, purchasing raffle ticket software may be more cost-effective than paying to have tickets printed or buying tickets from an office supply store.
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      • When running a raffle contest for charity, it is not unusual for local businesses to donate their goods and services as prizes for the raffle drawing.
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      Warnings

      • Not all states allow raffles. Research your state's laws to be sure you are staying within legal limitations.
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      References

      1. ↑ https://www.michigan.gov/cg/raffles
      2. ↑ https://www.bhf.org.uk/how-you-can-help/fundraise/ideas/how-to-organise-a-raffle
      3. ↑ http://knowhownonprofit.org/how-to/how-to-approach-local-businesses-for-donations
      4. ↑ https://www.gbmcpas.com/raffles-dont-get-tricked-by-all-the-rules/
      5. ↑ https://www.bhf.org.uk/how-you-can-help/fundraise/ideas/how-to-organise-a-raffle
      6. ↑ https://budgetraffletickets.com.au/faq/ticket-pricing/
      7. ↑ https://www.bhf.org.uk/how-you-can-help/fundraise/ideas/how-to-organise-a-raffle
      8. ↑ https://www.hrblock.com/tax-center/income/other-income/taxes-on-prize-winnings/
      9. ↑ https://donorbox.org/nonprofit-blog/raffle-ideas
      1. ↑ https://www.gbmcpas.com/raffles-dont-get-tricked-by-all-the-rules/
      2. ↑ https://donorbox.org/nonprofit-blog/raffle-ideas
      3. ↑ https://www.onecause.com/blog/chinese-auction-definition/
      4. ↑ https://www.zeffy.com/blog/chinese-auction
      5. ↑ https://doa.wi.gov/Gaming/Calendar+Raffle+Requirements+(DOG-131).pdf
      6. ↑ https://www.variety.org.au/qld/wp-content/uploads/2018/12/How-to-Run-a-Raffle-.pdf
      7. ↑ https://knowhow.ncvo.org.uk/how-to/how-to-run-a-charity-raffle

      About This Article

      Article Summary X

      Before planning a raffle, check your local laws to see if raffles are legal in your area. Draft rules that state whether or not participants have to be present when the raffle is called and how long they have to claim their prize. Create and print tickets that include space for a participant’s name, address, phone number, and email address. Avoid giving away highly regulated prizes like alcohol, tobacco, and firearms. Instead, consider giving away gift certificates or ask local businesses for donations. Keep reading for advice on how and where to sell your raffle tickets!

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        Aug 14, 2017

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