Planning a Raffle Fundraiser? Here Are 5 Things You Need to Know

Raffle fundraisers are a relatively easy, time-tested way to make money for your organization, but they can be tricky to navigate. From cutting through the red tape to ensuring you sell more tickets than you invest in prizes, this fundraising idea might require more time and footwork than expected.

To help you reach your goals this season, we’ve gathered top ideas and advice for successful raffle fundraising. 

Follow the rules 

For legal purposes, raffles meet the definition of lotteries and fall under the umbrella of gambling. Raffle fundraising requires paying attention to the law, so figuring out the regulations and how to navigate them comes before picking out a fun prize. 

Rules you may need to follow depend on: 

• Location – Rules are typically set at state and county levels. Moreover, some locations may prohibit raffles entirely or impose limits and procedural requirements. For instance, you may need to apply for a license or permit. 
  
  
• Raffle format – Depending on your jurisdictional regulations, you may be able to hold an in-person raffle, an online raffle, or a combination of the two.
  
  
• Tax-exempt status – Typically, your organization must be federally tax-exempt to hold a charitable raffle.
  
  
• Prize value – If you’re planning on prizes worth $5,000 or more, you’ll need to follow IRS guidelines on withholding and reporting a percentage of its value.

Choose the right prize 

Who’s your audience? Before you consider what’s been successful for other groups, think about the demographics, habits, and trends of people most likely to buy your raffle tickets. 

A Reddit thread on r/freemasonry, for example, noted great results raffling scotch, firearms, a sword, and even a cow—but chances are low that these are a good fit for most groups. 

Raffle fundraising ideas that are likely to garner excitement with a wider audience include: 

• Limited-availability prizes – Consider seeking specially arranged experiences that aren’t otherwise accessible, such as VIP box use at an arena, a behind-the-scenes tour, a customized item from an artist, or—an annual success noted by one Redditor on r/nonprofit—a ride to school on a firetruck.
  
  
• Hot trends – Just-released electronics such as the next big Apple product, console gaming system, or home theater tech are usually a strong draw, particularly if they’re hard to get ahold of.
  
  
• Boon-to-the-budget prizes—Buying a raffle ticket for a chance to strike a major item from your budget appeals to the practical among us. The prizes could be related to group activities such as coverage for an overseas excursion or high-dollar field trip, a year’s worth of meat from a local butcher, or gift cards covering basics like gas and groceries.
  
  
• Luxury services – Even when affordable, many adults shy away from including services they deem unnecessary or indulgent in their budgets. Consider professional house cleaning, a landscaping crew, top-notch automotive detailing, and spa or massage services.

Double down with a gift card fundraiser

Before you purchase a raffle prize or prizes, increase your incoming dollars by leveraging the RaiseRight fundraising program. When you purchase gift cards through the RaiseRight platform, you can earn up to 20% back from hundreds of brands.  

For raffle prizes, consider: 

• A large-dollar Amazon gift card
• A gift card bundle for common needs (grocery, restaurants, department stores, gas)
• A vacation getaway bundle (Airbnb, Delta or Southwest Airlines, Sheraton, etc.)

Price it right 

Raffle fundraisers only work if they bring in (significantly) more money than they cost. Before you commit, use this formula to calculate what pricing and ticket sales are needed to meet your goal:

Ticket Price = (Fundraising Goal + Total Expenses) / Tickets Sold Total

For instance, if your goal is $5,000 and you invest $1,000 in prize, marketing, and other costs, then you’ll need to sell 3,000 tickets at a price of $2 each.

Additionally, consider pricing your raffle tickets with: 

• A low starting cost of $1 or $2
• A tiered scheme, with higher prices for higher prizes
• Bundled options such as three for $5, seven for $10, etc.

Promote, promote, promote 

To make it a successful fundraiser, you need to generate buzz among your supporters and community. Create a marketing plan and consider incorporating: 

• Early inclusion in organizational newsletters, calendars, and announcements
• Social media event page and posts that highlight prizes 
• A media kit for donating businesses and supporters with social-ready graphics and text
• Bulletin board flyers with countdown updates and prize promotion

Partner with RaiseRight

The best way to make your raffle fundraiser a success? Combine it with RaiseRight’s gift card and online shopping fundraisers. While you generate earnings on the prizes themselves, you can also promote RaiseRight use among your supporters—earn money for your organization without wasting valuable time or spending an extra dime. 

With RaiseRight, your members buy and use gift cards (instead of credit cards or cash) or shop online for goods and services already in their budgets, with a percentage of every purchase benefiting your organization. With hundreds of brands available, such as Amazon, Target, and Walmart, there’s something for everyone on RaiseRight.