7 Do’s and Don’ts for an Online Raffle Fundraiser
Raffles can be an exciting way to give back to your community — but they come with unique rules, risks and best practices. One wrong step could turn a lighthearted promotion into a legal headache. That’s why Go Raise Dough is breaking down essential dos and don’ts of running an online raffle fundraiser so you stay safe, fair and compliant.
DO: State the terms of the raffle.
When wondering how to do a raffle online, remember: people want clarity before they contribute. Be sure to clearly outline what your raffle rules are, what prizes are included and how participants can enter to earn your audience’s trust.
Most importantly, you should clearly outline what your raffle proceeds will support. Nearly half (44%) of donors give to causes they’ve personally experienced or care deeply about. If you can effectively communicate your cause and its benefits, you may generate more ticket sales over time.
You can share this information with your community through a variety of outlets — from websites and landing pages to emails and newsletters.
DON’T: Assume your team will sell.
Selling raffle tickets in person can be an uncomfortable, high-rejection task. Your team may seem willing to sell tickets, but in actuality, they hesitate to ask friends, family and community members to contribute face-to-face.
In comparison, selling raffle tickets online feels painless and easy. Your team just posts on Facebook or X and watches sales roll in. The best part is that you can easily view how and when your team members are selling tickets for your online raffle fundraiser.
Go Raise Dough offers individual sales tracking, so you can track performance attributed to each team member. This data creates an opportunity to celebrate top supporters and gently push others to perform.
DO: Promote your online raffle fundraiser.
Raffles need to stay on your audience’s radar to achieve results. With this in mind, we recommend creating a dedicated social media page for your raffle on Facebook or Instagram. This gives you a platform to share promotions and updates, without overwhelming the people who follow your school, parish or organization.
To increase reach, occasionally reshare posts on your organization’s primary page and encourage your community to do the same.
DON’T: Use regulated items as prizes.
Raffles have certain legal regulations to abide by, especially when it comes to prizes. Tobacco, firearms, alcohol and controlled substances are heavily regulated — so it may be best to avoid these prizes when hosting a mega raffle.
When exploring how to do a raffle online, keep in mind that the rules vary by state. We recommend checking regulations in your state before announcing a prize to ensure full compliance.
DO: Keep detailed records.
Federal, state and local entities keep a close eye on raffles. Since the law considers raffles a form of gambling, these officials want to verify that all proceeds are going to legitimate causes rather than private individuals. Organizations that fail to keep records risk hefty fines and penalties.
Luckily, many online raffle fundraiser platforms automatically retain information and translate it into reports. For example, Go Raise Dough provides a summary report of paid tickets, free tickets and dollars raised by date.
Be sure that your final records outline key information, including but not limited to:
- Ticket sales
- Net proceeds
- Itemized expenses
- Prize distributions
- Winner information
- Licenses
- Permits
DON’T: Deviate from intended purposes.
Raffles are games of chance — not charitable donations. As a result, the law requires your organization to use proceeds for a specific, authorized purpose.
Organizations that misuse proceeds from an online raffle fundraiser risk:
- Tax penalties. The IRS considers raffle proceeds to be unrelated business income (UBI). If proceeds are not used for charitable purposes, they become subject to UBI taxes. Plus, misuse may cost your organization its tax-exempt status — leading to audits and additional fines.
- Compliance risks. Raffles are illegal in many states unless authorized for a charitable purpose. Using funds for a non-charitable purpose can be considered illegal gambling, making you subject to legal pushback.
- Reputational decline. Donors purchase raffle tickets believing that they are supporting a charitable purpose. Using funds for any other purpose risks damaging your organization’s reputation and losing your donor base in the future.
DO: Review your statistics.
Statistics tell a story. Platforms for an online raffle fundraiser, like Go Raise Dough, track revenue by date, allowing you to determine what drove sales. Maybe a social post was particularly successful or an event prompted ticket sales.
Whatever the case may be, data tracking allows you to understand where your raffle excels and where it falls short. These insights give you and your team the knowledge to improve raffle performance year over year.
Get Started with Go Raise Dough
Raffles can feel rewarding when done thoughtfully and responsibly. By following the dos and don’ts outlined here, you can create an experience that keeps transparency, compliance and trust at the forefront.
Still have questions about how to do a raffle online? For additional information, contact the Go Raise Dough team today.