Raffle fundraisers are a relatively easy, time-tested way to raise money for your organization, but they can be tricky to navigate. From cutting through red tape to ensuring a return on investment, this fundraising idea might require more time and footwork than you expect.
To help make your raffle fundraiser a success, we’ve gathered top ideas and practical advice.
1. Follow the rules
For legal purposes, raffles meet the definition of lotteries and fall under the umbrella of gambling. If you're running a raffle fundraiser, you'll need to adhere to the law, so assess the regulations before choosing 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.
2. Get creative with prizes
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 latest 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 can be enticing. Think: 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.
3. Double down with a gift card fundraiser
Gift cards are popular raffle incentives, and you can increase your incoming dollars by leveraging a RaiseRight fundraising program. When you purchase gift cards through the RaiseRight platform, your organization 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.)
Interested in a RaiseRight fundraiser for your group? Check out our guide below to learn more, then start a free program here.
4. 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 for $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.
5. 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? Pair it with a RaiseRight program!
With hundreds of popular brands such as Amazon, Walmart, Starbucks, Uber, Instacart, and The Home Depot, securing your raffle prizes is easier than ever. Raffle off gift cards themselves, or use RaiseRight to purchase prizes directly and earn money back along the way.
Beyond your raffle fundraiser, supporters can use RaiseRight for everyday purchases throughout the year. It's a sustainable, always-on fundraiser that you can run 24/7, 365 for year-round fundraising potential.
Top participants can earn $1,000 or more annually, so if you're curious about the earning potential for your household, try our free calculator to see the benefits for yourself:
Ready to start earning?
Here are some next steps to get the ball rolling:
- Learn more about how RaiseRight works.
- Download The RaiseRight Fundraising Playbook and share it with others in your organization.
- Start a free program by completing a short, online enrollment form.
If your organization is already earning with RaiseRight, you just need your enrollment code to create an account and begin fundraising right away.
