How to run a raffle: Complete guide for fundraisers

They work as standalone campaigns, as components of larger events, and increasingly as fully online fundraisers. Before planning any raffle, two decisions drive everything else: which type of raffle fits your event and audience, and whether you have the legal clearance to run it in your state. This guide covers both, along with every practical step from prize sourcing through post-event record-keeping.

If you are still deciding whether a raffle is the right fundraiser for your goals, see our comparison of the most profitable fundraisers. If your state's raffle laws are too restrictive, our guide on how to run a fundraiser without calling it a raffle covers legal alternatives that produce similar results.

What is a raffle?

‍A raffle is a game of chance in which participants purchase numbered tickets for the opportunity to win a prize. After ticket sales close, one or more tickets are drawn at random and the holders receive the corresponding prizes. Because a raffle involves consideration (the ticket purchase), chance (random selection), and a prize, it qualifies as a game of chance under most state laws and requires the organizer to comply with applicable charitable gaming regulations before selling a single ticket. The key legal distinction: most states only allow nonprofits and registered charities to run raffles, not individuals or for-profit businesses.

Raffle types: which format fits your event

The type of raffle you run determines your ticket pricing, your prize strategy, and how long participants stay engaged. Most fundraising guides treat all raffles as identical. They are not.

50/50 raffle

The 50/50 is the most accessible raffle format for general audiences. Half of all ticket proceeds go to one randomly selected winner; the other half goes to the organization. The prize grows in real time as more tickets are sold, which creates urgency and makes the fundraiser self-promoting: as the jackpot climbs, the draw to participate increases. Ticket prices are kept low ($1 to $5) specifically to encourage volume. Bundle pricing, such as 25 tickets for $100, is standard and reliably increases per-buyer revenue.

Reverse raffle

In a reverse raffle, tickets are drawn one at a time and those holders are eliminated rather than rewarded. The last ticket remaining wins the grand prize. This format is specifically designed for seated events like gala dinners because it gives every attendee a reason to stay until the end of the event. Smaller consolation prizes for the last few eliminated tickets (such as the final 9 before the winner) sustain excitement and reduce early departures. Ticket prices are higher than other formats, typically $25 to $100 or more, because total volume is lower.

Balloon raffle

Prize slips are sealed inside helium-filled balloons set up in a high-traffic area. Buyers pop their balloon to discover what they won. Not every balloon contains a winning prize. The format creates immediate, physical excitement at family events and school carnivals and works well when the audience includes children. State rules on raffles and games of chance apply equally to balloon raffles, so confirm legal compliance as you would for any other format.

Step 1: confirm your legal clearance

Raffle laws in the United States vary significantly by state. Most states only allow registered nonprofits with 501(c)(3) or equivalent status to run raffles. Some states require that the organization has been in existence for a minimum number of years (Texas requires 3 years) before running a raffle. A handful of states prohibit charitable raffles entirely. Zeffy's overview of raffle legal requirements provides a starting point, but always verify current requirements with your state's charitable gaming or licensing office before committing to a raffle campaign.

Common requirements across most states that allow nonprofit raffles:

• Licensing or permit: Most states require a raffle license or permit application filed before ticket sales begin. Processing times range from a few days to several weeks depending on the state.
• Who can participate: Some states restrict who may purchase tickets (age minimums, residency requirements, or exclusions for organizers and their immediate families).
• Online ticket sales: Not universally permitted. Some states explicitly prohibit online raffle ticket sales even when in-person raffles are allowed. Confirm your state's position before building an online campaign.
• Reporting: Most states require post-raffle reporting of gross receipts, prizes awarded, and how net proceeds were used. Filing deadlines vary.
• Record-keeping: Most states require raffle records to be retained for a minimum of three years. Keep ticket stubs, sales records, drawing documentation, and expense records.

For a state-by-state reference, see our guide on nonprofit raffle laws by state.

Step 2: set your fundraising goal and budget

A clear revenue goal determines how many tickets you need to sell, which in turn determines your prize strategy and ticket pricing. Work backward from the goal:

• Set the revenue target: How much does the organization need to net after expenses? Raffle expenses typically include prize costs (if not donated), printing, permits, and promotion.
• Estimate ticket count and price: If your goal is $5,000 net and tickets are $10 each, you need to sell 500 tickets above your expense line. Price and volume must be realistically achievable given your audience size.
• Account for prize value: Donated prizes cost nothing but require procurement time. Purchased prizes reduce net proceeds. The strongest raffle economics come from donated prizes, which is why prize sourcing is one of the most time-intensive parts of raffle planning.

Rule of thumb: Total prize value should be roughly 20 to 30% of projected gross ticket revenue for the raffle economics to make sense. A $10,000 prize raffle with $1 tickets is not viable unless you sell 20,000 tickets.

Step 3: choose your raffle type and format

Based on the raffle types table above, select the format that fits your event context, audience, and prize structure. The most common error at this stage is defaulting to a single-prize raffle for large events, where a reverse raffle or multi-prize format would produce higher engagement and revenue.

• Seated gala or dinner: Reverse raffle. Keeps attendees in their seats and maximizes dwell time at your event.
• Community sporting event or family night: 50/50 raffle. Broad appeal, low ticket price, no inventory to manage.
• School carnival or family fair: Balloon raffle or multi-prize raffle with themed baskets.
• Online or hybrid campaign: Online raffle with a single or small number of high-value prizes. Clear visuals of the prize are essential for online ticket sales.
• General nonprofit fundraising event: Multi-prize raffle with a mix of high-value, mid-range, and lower-value prizes to maintain broad appeal across your donor base.

Step 4: source your prizes

Prize quality is the primary driver of raffle ticket sales. A raffle with a vacation package, a technology prize, or a high-value local experience will outsell a raffle with generic gift baskets at any ticket price. Prize sourcing is where most raffle planning time should go. RallyUp recommends targeting 3 potential prize contributors per item: if you want 10 prizes, contact 30 potential donors. Not everyone will say yes, and having backups prevents last-minute gaps.

Prize sourcing channels:

• Board members and major donors: Vacation home access, sporting event tickets, exclusive experiences, and high-value products. Board members asking peers is consistently the highest-yield solicitation approach.
• Local businesses: Restaurants, spas, retailers, and service providers regularly donate to nonprofit raffles in exchange for recognition. A personalized phone call or in-person visit from a board member outperforms email requests significantly.
• Corporate donors: Larger companies with community giving programs often donate products or gift cards on request, particularly when approached by someone with an existing relationship.
• Online marketplaces and auction consignment services: Travel packages and high-value experiences can sometimes be procured through auction consignment services that provide items in exchange for a minimum bid guarantee.

Prize display and sequencing

For multi-prize raffles, save the highest-value prize for last. Announce it prominently before ticket sales begin to establish the ceiling of excitement, then draw lower-value prizes first during the event. The grand prize draw at the end sustains engagement and typically drives a final push of ticket sales immediately before the drawing.

Step 5: set your ticket price and bundle strategy

Ticket pricing should reflect your audience's typical giving level, the value of the prizes, and the revenue target. General guidelines:

• $1 to $5: 50/50 raffles and high-volume community events where participation breadth matters more than per-ticket revenue.
• $5 to $20: Standard range for most nonprofit fundraising raffles. $10 is the most common single-ticket price at mid-size events.
• $25 to $100+: Reverse raffles and events with high-value single prizes where ticket volume is deliberately limited.

Bundle pricing consistently outperforms single-ticket pricing for total per-buyer revenue. Standard bundles:

• 5 tickets for $20 (saves $0 but signals that buying more is expected)
• 10 tickets for $25 (discount incentivizes volume; increases average transaction significantly)
• 25 tickets for $100 (for 50/50 and high-volume formats; standard at sporting events)

Always offer a single-ticket purchase option alongside bundles. Some attendees will not buy a bundle but will buy one ticket, and one ticket is better than none.

Step 6: design and distribute your tickets

Physical raffle tickets should include: the organization's name, the event name and date, the prize or prizes, the drawing date and time, the ticket price, a unique sequential number on both the ticket and the stub (if using stub-based tracking), and any legally required information specific to your state's permit.

Online raffle tickets are generated by your fundraising platform. Most platforms automatically assign unique identifiers and maintain a digital record of all ticket purchases, which simplifies both the drawing process and post-event reporting requirements.

Legal note: Some states specify exactly what information must appear on raffle tickets as a condition of the permit. Review your permit requirements before finalizing ticket design.

Step 7: promote your raffle

Raffle promotion should begin at least 4 to 6 weeks before the drawing date for standalone online raffles, and at least 2 to 3 weeks before any event-based raffle. The prize is the primary hook for promotion. Show it, describe it specifically, and repeat its visibility across every channel.

• Email: Dedicated raffle announcement, reminder 2 weeks before drawing, final push 48 hours before close. Subject lines that name the specific prize outperform generic calls to action.
• Social media: Prize-focused images and short videos. Countdown posts in the final week. Stories and posts with a direct ticket purchase link reduce friction.
• In-person: Display prizes visibly at any associated event. Have ticket sellers approach tables or individuals directly rather than waiting for people to come to them.
• Text messaging: For organizations with text-enabled donor communication, a direct link to online ticket sales sent by text consistently outperforms email for conversion rate.
• Peer-to-peer: Ask board members and key donors to promote the raffle to their personal networks. A personal endorsement from someone the recipient knows converts at a significantly higher rate than organizational outreach.

Step 8: conduct the drawing

The drawing must be conducted in a manner that is verifiably random and transparent. For physical ticket drawings, use a sealed container that was not accessible between ticket sale and drawing. For online drawings, use a certified random number generator and document the process.

For in-person events, treat the drawing as a performance rather than an administrative step. Build anticipation, involve the audience, and announce winners with appropriate ceremony. For reverse raffles, the drawing process is the event — pace it deliberately with pauses between draws.

Document the drawing: who conducted it, how winners were selected, and the name and ticket number of each winner. This documentation is required for post-raffle reporting in most states.

Tax and compliance considerations

Raffle winnings are taxable income to the recipient. Momentive notes that if raffle winnings exceed $5,000, the nonprofit is legally required to withhold 25% of the winnings as federal tax before distributing the prize, or to pay the withholding amount on the winner's behalf. This applies to cash prizes and to the fair market value of non-cash prizes. For prizes below the $5,000 threshold, the winner is still responsible for reporting winnings as income on their tax return, but no withholding is required from the organization.

Practical implications:

• Cash prizes: Withhold 25% of any prize over $5,000 before distributing. Provide the winner with Form W-2G documenting the gross winnings and amount withheld.
• Non-cash prizes: The fair market value determines whether the $5,000 threshold is crossed. A vacation package worth $6,000 triggers withholding requirements. Estimate fair market value conservatively and document it.
• Gross receipts reporting: Most states require reporting total ticket revenue, total prize value, and net proceeds within a specified time after the drawing. Keep all ticket stubs and sales records to complete this accurately.
• Record retention: Retain all raffle records for a minimum of three years in most states. This includes permit applications, ticket sales records, drawing documentation, and post-event reports.

Step 9: post-raffle follow-up and record-keeping

Post-raffle follow-up converts a one-time transaction into a donor relationship. 4aGoodCause recommends collecting names, addresses, and email addresses from all ticket purchasers and using the raffle as a donor acquisition event, not just a revenue event. Every ticket buyer who is not already in your donor database is a new prospect who has already demonstrated willingness to give.

• Thank all participants: A brief message acknowledging ticket purchasers and sharing the total raised reinforces that the raffle accomplished something meaningful.
• Thank prize donors: A personalized acknowledgment to every business or individual who donated a prize is both good stewardship and a prerequisite for future prize support.
• File post-event reports: Submit any required state reporting forms within the deadline specified in your permit.
• Retain all records: File ticket stubs, sales logs, winner documentation, drawing records, and expense receipts for the required retention period (minimum 3 years in most states).
• Conduct a debrief: Document what worked, what ticket price performed best, which prize drove the most ticket sales, and any compliance issues encountered. This information is the most valuable input for planning the next raffle.

Raffle planning checklist

Use this checklist to track completion of each phase:

• Determine raffle type (single prize, multi-prize, 50/50, reverse, balloon, online)
• Verify state legal requirements and apply for permit
• Set revenue goal and budget
• Identify prizes and begin solicitation (target 3 prospects per prize)
• Set ticket price and bundle structure
• Design tickets or configure online platform
• Launch promotion campaign (4 to 6 weeks before drawing for online; 2 to 3 weeks for event-based)
• Confirm withholding requirements for prizes over $5,000
• Conduct drawing with documentation
• Distribute prizes and issue any required tax forms (W-2G)
• File post-event state report
• Thank ticket buyers, prize donors, and volunteers
• Retain all records for minimum 3 years

Building a raffle that does more than raise money

A well-run raffle generates revenue, but a well-stewarded raffle generates donors. Every ticket purchaser who is treated as a relationship rather than a transaction represents a potential long-term supporter of your mission. Harness helps nonprofits manage donor relationships and follow-up communications so the momentum from a successful raffle translates into lasting donor engagement rather than a one-time revenue spike. For creative raffle prize ideas that drive ticket sales, see our dedicated prize guide.

Frequently asked questions

How do you run a raffle fundraiser?

Running a raffle fundraiser involves nine main steps: confirm your state's legal requirements and apply for a permit, set a revenue goal and budget, choose your raffle type (50/50, single prize, reverse, or multi-prize), source prizes by contacting three potential donors per item, set your ticket price and bundle strategy, design and distribute tickets, promote the raffle beginning at least 4 weeks before the drawing, conduct the drawing with transparent documentation, and complete post-event reporting and record-keeping.

What is a 50/50 raffle?

A 50/50 raffle splits ticket proceeds equally between one randomly selected winner and the organizing nonprofit. If $2,000 in tickets are sold, the winner receives $1,000 and the organization keeps $1,000. The prize grows in real time as more tickets are sold, creating built-in urgency. Tickets are typically priced at $1 to $5, with bundle pricing (25 for $100) standard at sporting events and high-volume community gatherings.

What is a reverse raffle?

A reverse raffle draws tickets one at a time and eliminates those holders rather than awarding them prizes. The last ticket remaining wins the grand prize. This format is specifically designed for seated events like gala dinners because it gives every attendee a reason to stay until the end. Ticket prices are higher than other formats ($25 to $100+) because total volume is lower. Small consolation prizes for the final few eliminations before the winner sustain audience energy.

How much should raffle tickets cost?

Ticket prices typically range from $1 for 50/50 raffles to $100 or more for reverse raffles with high-value grand prizes. For most nonprofit fundraising events, $5 to $20 is the standard single-ticket range. Bundle pricing consistently increases total per-buyer revenue: offering 10 tickets for $25 when individual tickets are $5 moves buyers from single purchases to multi-ticket transactions. Always set ticket prices in relation to prize value and your target revenue.

Are raffle winnings taxable?

Yes. Raffle winnings are taxable income to the recipient regardless of the prize amount. For prizes exceeding $5,000 in value, the nonprofit is required to withhold 25% of the prize value as federal tax before distributing the prize, or to pay the withholding on the winner's behalf. The organization must provide the winner with Form W-2G documenting the gross winnings and amount withheld. Winners of prizes below $5,000 are still responsible for reporting winnings as income on their personal tax returns.

How do you find prizes for a raffle?

The most effective prize sourcing approach is to target three potential donors per prize slot, then work down the list until each slot is filled. Board members soliciting from their personal and business networks produce the highest-value prizes. Local businesses, particularly restaurants, spas, and experience providers, frequently donate to nonprofit raffles in exchange for recognition. For high-value items like travel packages, consignment auction services can provide prizes in exchange for a minimum bid or guaranteed price.

How long do you have to keep raffle records?

Most states require raffle records to be retained for a minimum of three years. Records to keep include: your permit application and approval, ticket sales logs, stub counterparts for all sold tickets, documentation of the drawing process including who conducted it and how winners were selected, prize distribution records, and any post-event reports filed with state authorities. Check your specific state's requirements, as some have longer retention periods.

Can you run a raffle online?

It depends on your state. Some states explicitly permit online raffle ticket sales by registered nonprofits. Others prohibit online sales even when in-person raffles are allowed. A few states allow online promotion but require physical ticket sales. Always confirm your state's current rules before building an online raffle campaign. For states where online raffles are not permitted, see our guide on how to run a fundraiser without calling it a raffle for legal alternatives.