Raffles are chance-based contests in which participants purchase tickets that are then entered into a drawing to win prizes. Nonprofits can use raffles to raise money, build awareness of their cause, and add excitement to an event or online fundraising campaign. However, there are a few things nonprofits need to keep in mind when planning and hosting a raffle.

Before holding a raffle, make sure youre in compliance with state gambling laws. Some states consider any income from a raffle taxable and require nonprofits to hold the funds in a separate bank account. Additionally, some cities and counties may require you to obtain a permit to conduct a raffle.

In addition to ensuring that youre in compliance with local and state regulations, its also important to have an understanding of your fundraising goals and the type of audience you want to reach. You can target a specific demographic by choosing a particular day or time to conduct your raffle, as well as defining your maximum prize value and minimum ticket price.

To maximize participation and attract potential donors, select a high-value grand prize that your audience will find appealing. A few of the most popular grand prizes for nonprofits include vacations, restaurant gift cards, and large electronics like televisions, laptops, and tablets. The bigger the prize, the more tickets your nonprofit will sell.

Once youve determined your prize, promote it on social media and in your nonprofit website. Use eye-catching images and a catchy description that will encourage people to buy tickets. The more re-postable and retweetable your advertising is, the better.

Be sure to give winners enough time to claim their prizes. This is especially true if youre using an electronic drawing system, where you may need to wait a few days for the results to be finalized and posted. In any case, its essential to follow up with your winners and thank them for their support.

If youre raising funds for a specific project, its helpful to share photos and videos of the progress youve made thanks to your donors generosity. This will help your community understand how their donation is making a difference and can encourage them to continue supporting you in the future.

If youre raising money through a raffle, ask local businesses and corporations to donate the prizes for your fundraiser. You can then include the companies names in your marketing materials and offer them free publicity on your nonprofit website to help them feel invested in the success of your fundraising campaign. Finally, be sure to collect written permission from all entrants before including their photos or videos in your marketing. This helps you avoid spamming your donors newsfeeds and protect their privacy.