How to Run a Raffle: A Complete Guide

What is a raffle fundraiser?

A raffle is one of the oldest and most straightforward fundraising formats: participants buy numbered tickets, a winner is drawn at random, and the winner takes home a prize. It works for school PTAs, churches, sports clubs, hospitals, and national nonprofits alike. The format is simple enough that a first-time organizer can run one successfully, and flexible enough that experienced fundraisers keep coming back to it.

Raffles raise money through volume. Unlike a silent auction where a few high bidders drive the total, a raffle spreads participation across dozens or hundreds of supporters, each buying one or more tickets at a low price point. That broad participation is what makes raffles so effective for community-oriented organizations: everyone can afford to play, and everyone has an equal shot at winning.

This guide walks through everything you need to plan, promote, and execute a raffle that hits its fundraising target, stays legally compliant, and sets you up to do it again next year.

Why raffles work for fundraising

Raffles consistently outperform other fundraising formats on one metric that matters more than total revenue: participation rate. At a typical gala, 20-30% of attendees might bid on a silent auction item. At the same event, 60-80% will buy raffle tickets. The low price point removes the mental barrier that keeps casual supporters from engaging.

There are a few reasons raffles punch above their weight:

Low barrier to entry. A $5 or $10 ticket is an easy yes. Supporters who would never bid $200 on an auction item will happily buy five raffle tickets. More participants means more revenue and a larger donor list for future outreach.

Built-in excitement. The random draw creates a shared moment of suspense that energizes a room (or an online audience) in a way that closing a bid sheet never does. That energy translates to additional ticket sales in the final minutes before the draw.

Minimal procurement. A strong raffle needs one to three desirable prizes, not the 30-50 lots a silent auction requires. Less procurement work means less volunteer burnout and a faster planning timeline.

Repeatability. A raffle can run at every event you hold, or as a standalone campaign between events. The format doesn't get stale the way a repeated auction theme can, because the prizes change and the randomness keeps it fresh.

Step 1: Set your goals and budget

Before you pick prizes or print tickets, define what success looks like. A raffle without a clear revenue target tends to drift: you underprice tickets, over-spend on prizes, or stop promoting too early.

Set a revenue target. How much do you need to raise from the raffle specifically? If it is part of a larger event, what share of the total should the raffle contribute? A common split for a gala is 15-25% of total revenue from the raffle, with the rest from ticket sales, auction, and fund-a-need.

Calculate backward from the target. If your goal is $5,000 and tickets are $20 each, you need to sell 250 tickets. If you expect 150 attendees and each buys an average of 1.5 tickets, that is only 225 tickets sold. You either need to raise the ticket price, increase average tickets per buyer (bundle pricing helps), or expand your audience with online ticket sales before the event.

Budget your prize costs. The general rule is to spend no more than 20-30% of your revenue target on prizes. If you are aiming for $5,000, keep prize costs under $1,500. Donated prizes are ideal because they drop that cost to zero, but do not count on donations until they are confirmed in writing.

Account for expenses. Printing tickets, permits or licenses (more on this below), marketing materials, and platform fees if you are selling online. Build these into your budget so the net revenue is not a surprise.

Step 2: Choose your prizes

The prizes are the engine of your raffle. The right prize generates ticket sales on its own; the wrong one requires constant explanation and still underperforms. For a deep dive into specific prize categories, see our guide to the best raffle prize ideas.

Lead with one headline prize. Your marketing will center on the top prize, so it needs to be something a wide audience genuinely wants. Cash, a vacation package, or a high-demand consumer item (gaming console, designer handbag, premium headphones) all work. The headline prize should represent 40-60% of your total prize budget.

Add two to three secondary prizes. Second and third prizes keep buyers hopeful. A $500 gift card, a spa day, or a premium gift basket fills this role well. These do not need to match the headline prize in perceived value, but they should be desirable enough that someone would be pleased to win. For creative basket ideas, check out our raffle basket ideas guide.

Consider your audience. A tech-savvy young professional crowd will respond differently than a parent-heavy school community. Match prizes to what your specific audience values, not what a generic "top raffle prizes" list suggests. Ask your volunteers and board members: would you buy a ticket for this?

Get prizes donated when possible. Local businesses, board member connections, and corporate sponsors are all potential sources for donated prizes. Offer recognition in your marketing and at the event in return. A donated prize means every ticket dollar goes straight to your bottom line.

Step 3: Set ticket pricing and rules

Pricing is where many organizers leave money on the table. Too low and you need an unrealistic volume. Too high and participation drops. The sweet spot depends on your audience and your prizes.

Price relative to the prize. A common benchmark: set the individual ticket price so that if you sell all available tickets, the total revenue is three to five times the value of the grand prize. A $1,000 prize with 200 tickets means $15-$25 per ticket. A $5,000 prize with 500 tickets means $30-$50 per ticket.

Offer bundle pricing. "1 for $25, 5 for $100" is the classic structure that increases average spend per buyer. The discount on the bundle should be meaningful enough to nudge the upgrade: 15-25% off the per-ticket price. Bundles routinely increase average revenue per participant by 30-50%.

Decide on ticket limits. Will you cap total tickets sold? A cap creates scarcity, which drives urgency and lets you market the odds. "Only 200 tickets available, your odds are 1 in 200" is a compelling pitch for a $2,000 prize at $25 per ticket. Uncapped tickets maximize revenue but dilute odds, which can slow late sales.

Set clear rules. Publish the draw date and time, how the winner will be selected, how and when the winner will be notified, whether the winner must be present, and any age or geographic restrictions. Clear rules build trust and protect you legally.

Step 4: Promote and sell tickets

A raffle that nobody knows about raises nothing. Promotion should start two to three weeks before the draw for an event-based raffle, or four to six weeks for a standalone online raffle.

Lead with the prize. Every piece of promotion should feature the headline prize front and center. A photo of the prize, its value, and a clear call to action ("Buy tickets now") is the formula. Do not bury the prize in paragraph three of a newsletter.

Sell online and in person. Online ticket sales extend your reach far beyond the event room. An online raffle platform handles ticket sales, payment processing, and winner selection in one place. In-person sales at the event itself, at community locations, or through volunteers still matter, especially for local organizations. Use both channels.

Leverage email and text. Send a dedicated email to your supporter list announcing the raffle with a direct link to buy tickets. Follow up with a reminder as the draw date approaches. Text messages are even more effective for time-sensitive pushes: a "Last 48 hours to buy raffle tickets" text drives urgency that email cannot match.

Arm your volunteers. Give volunteers a short script and a link they can share via text or social media. Personal outreach from a trusted contact converts better than any marketing email. Track which volunteers are driving sales so you can recognize top sellers.

Create urgency near the deadline. As the draw approaches, share a ticket count update: "Only 43 tickets left" or "Drawing in 24 hours." Scarcity and time pressure are the two strongest drivers of last-minute sales.

Step 5: Draw winners and follow up

The draw is the climax of the raffle experience. How you handle it affects whether participants come back next time.

Use a verifiable random selection method. A digital random number generator is the standard for online raffles. For in-person events, drawing a physical ticket from a container works if everyone can see it happen. Whatever method you use, it should be transparent and, ideally, witnessed by at least two people who are not winning the prize. A platform like momoGood handles random selection automatically with a full audit trail, so there is no question about fairness.

Announce the winner promptly. At a live event, the draw should be a moment, with a countdown, a reveal, and applause. For an online raffle, notify the winner by email and phone within an hour of the draw, then announce publicly on your channels. Speed matters: delayed announcements breed skepticism.

Deliver the prize quickly. Ship or hand over the prize within a week. A winner who waits a month for their prize will not buy tickets next year, and they will tell others about the bad experience.

Thank every participant. Send a follow-up message to all ticket buyers, not just the winner. Thank them for supporting your cause, share how much the raffle raised, and tell them what that money will fund. This message is your bridge to the next raffle or the next campaign. It is also a natural moment to invite them to join your donor list if they are not already on it.

Report your results. Document total tickets sold, revenue generated, prize costs, net proceeds, and participation rate. Compare against your initial goals. This data shapes your pricing, promotion, and prize strategy for next time.

Legal considerations

Raffles are regulated differently in every state (and every country). Ignoring the rules can result in fines, forced refunds, or worse. Do your homework before you sell a single ticket.

Check your state's raffle laws. In the United States, raffle regulations vary significantly by state. Some states require a license or permit. Some restrict raffles to registered 501(c)(3) organizations. Some cap prize values or ticket prices. A few states prohibit charitable raffles entirely. The National Council of Nonprofits maintains a state-by-state guide to charitable gaming regulations that is a good starting point.

Get the right permits. Many jurisdictions require a raffle permit or gaming license before you can legally sell tickets. Apply early because processing times vary from a few days to several weeks. Keep a copy of the permit on file and, if required, display it at the event.

Understand tax obligations. In the US, raffle prizes above $600 in value generally require the winner to report the prize as income. Your organization may need to issue a 1099 or W-2G form. Prize values above $5,000 may require federal tax withholding at the time of the draw. Consult your accountant or legal counsel for specifics.

Age and geographic restrictions. Most states require raffle participants to be 18 or older. If you are selling tickets online, you may need to restrict sales to residents of states where your raffle is legally permitted. Build these checks into your ticket sales process.

Record-keeping. Keep records of tickets sold, revenue collected, prizes awarded, permits obtained, and winner notification. These records protect you in the event of a regulatory inquiry and make next year's permit application smoother.

Tips for maximizing raffle revenue

The difference between a raffle that raises $2,000 and one that raises $10,000 is usually not the prize. It is the strategy around ticket sales, pricing, and participant experience.

Start selling early. Do not wait until the event to start selling tickets. Open online sales two to four weeks in advance. Early buyers generate momentum, social proof, and word-of-mouth that drives later sales.

Use tiered bundle pricing. Offer three to four price tiers: single ticket, small bundle (5 tickets), large bundle (10-12 tickets), and a "superfan" bundle (25 tickets at a steep per-ticket discount). Tiered pricing lets every budget participate while nudging bigger spenders toward the higher bundles.

Add a "no lose" consolation. Consider adding small consolation prizes (gift cards, branded merchandise) drawn from non-winning tickets after the main prize draw. This keeps the energy going, rewards more participants, and gives you additional draw moments to fill with excitement.

Pair the raffle with another format. Raffles work well alongside silent auctions, fund-a-need appeals, and live auction events. The raffle engages the guests who are not bidding, and the shared energy in the room lifts all formats. An events and auctions platform that handles raffle tickets, bids, and donations in one place simplifies the logistics for your team.

Run an online raffle between events. You do not need a gala to run a raffle. A standalone online raffle with a compelling prize, promoted via email and text, can raise $3,000-$10,000 with minimal overhead. It also keeps your organization visible between major events and gives supporters who cannot attend in-person events a way to participate.

Invest in the right platform. Spreadsheets and paper tickets work for a 50-person bake sale. For anything larger, a purpose-built raffle platform handles ticket sales, payment processing, random drawing, winner notification, and reporting automatically. momoGood's raffle tools are built for nonprofits: compliant by design, simple to set up, and integrated with the rest of your fundraising toolkit so you are not managing five different systems. Talk to our team to see how it works.

After the draw, momoGood AI helps you follow up with every ticket buyer — scoring supporters based on engagement, composing personalized thank-you messages, and identifying the participants most likely to give again. Learn more about momoGood AI.

Related reading

• momoGood Raffles
• Best Raffle Prize Ideas
• Raffle Basket Ideas
• momoGood Events and Auctions
• Silent Auction Ideas for Nonprofits