How to Run a Raffle

A raffle is a type of contest in which participants purchase tickets in exchange for chances to win a prize. The prize is typically determined by a “raffle drawing,” when the winning ticket is blindly pulled out of the pool of tickets. Raffle contests are regulated by local governments, but the laws vary from state to state.

Part 1: Preparing for the Raffle

Step 1: Check the Legal Requirements

1. Check Local Regulations: Verify if your organization can legally hold a raffle. Regulations vary widely:
   • Some states may prohibit raffles entirely.
   • Others might limit the number of raffles a non-profit can conduct annually or restrict the types of prizes.
   • Consult your state’s laws or speak with an attorney.
2. Avoid Certain Prizes: To prevent legal issues:
   • Prizes over $600 could attract IRS attention.
   • Avoid regulated items such as alcohol, tobacco, and firearms.

Step 2: Define the Rules

1. Create Clear Rules:
   • Include the appropriate state law reference (e.g., “This raffle is conducted according to the rules of [your state] in accordance with [state law reference]”).
   • Use simple language to explain how the raffle will work.
2. Prize Distribution:
   • State how unclaimed prizes will be handled.
   • Clarify if entrants need to be present to win.

Step 3: Decide on a Prize

1. Select a Prize:
   • Consider multiple prize levels (e.g., first, second, third place).
   • Engage local businesses for prize donations as a tax write-off.
   • Gift certificates are practical prizes that allow winners to choose their own rewards.

Step 4: Print Tickets

1. Design Tickets:
   • Use a word processor or a professional printer.
   • Include on one side: organization name, address, phone number, prize list, event name, drawing date, and website.
   • Provide spaces for participant information on the other side: name, address, phone number, email.
2. Ticket Numbers: Some states require numbered tickets, so verify this requirement.

Part 2: Conducting the Raffle

Step 1: Sell Tickets

1. Ticket Sales Strategies:
   • Door-to-Door: Engage organization members to sell tickets.
   • Online: Utilize social media and email, ensuring compliance with state regulations.
   • Storefronts: Partner with local businesses for in-store promotions.
   • Print Ads: Use local newspapers and magazines for advertising.
   • Booths: Set up at community events, festivals, and outside stores.
   • Fundraising Event: Sell tickets during the event where the drawing will take place.

Step 2: Hold the Raffle Drawing

1. Drawing Procedure:
   • Conduct the drawing towards the end of the event to maximize ticket sales.
   • Ensure the drawing is fair by mixing the tickets thoroughly and having a designated person draw the winning ticket without looking.
2. Secure the Tickets:
   • Keep the ticket box in a secure location to prevent tampering.
   • Regularly mix the tickets to ensure fairness.

Step 3: Contact Winners

1. Notify Winners:
   • Use the contact information provided on the tickets to inform winners who aren’t present.
   • Follow local laws for contacting winners and set clear deadlines for prize claims (e.g., 1 week for small prizes, 1 month for large prizes).
2. Claiming Prizes:
   • Clearly state the deadline for prize collection in your communication.
   • Ensure winners know whether they need to be present to claim their prize (as specified in your rules).

By following these steps, you can successfully organize and run a raffle, ensuring compliance with local laws, maximizing participation, and providing a fair and enjoyable experience for all participants.