Charity raffles can be an excellent way to raise money for your organization or cause, but they do come with legal guidelines and rules. Discover the eligibility requirements for running raffle fundraisers in the US, Canada, the UK, and New Zealand below.
Note: The organization benefitting from a raffle is responsible for the raffle’s legal compliance, and we strongly advise getting guidance from your legal counsel or state attorney general’s office if you’re not sure of the raffle regulations for your location.
Who is eligible to run a raffle in the US?
The IRS considers raffles a form of gambling but does allow them to be run by qualified 501(c) nonprofit organizations. This means that all funds raised from a raffle must be sent directly to a 501(c) organization, and that organization must agree to take responsibility for the legal compliance of the raffle fundraiser. For this reason, we can only work with 501(c) nonprofit organizations for US-based raffles. Raffles to benefit personal causes are not allowed under any circumstances.
Online raffle eligibility by State
Every state, county, and locality may have its own raffle laws that vary widely by jurisdiction and can change frequently.
Several states prohibit online charity raffles entirely. If your organization is domiciled in one of the following states, you won’t be able to run your raffle online:
- Alabama
- Arkansas
- California
- Connecticut
- Delaware
- Hawaii
- Michigan
- Minnesota
- New Hampshire
- New Jersey
- New Mexico
- Pennsylvania
- Utah
- Washington
Who is eligible to run a raffle in Canada?
Similarly in Canada, gaming activities such as raffles are governed by the province. Registered Canadian charities may be eligible to run raffles and it is up to your organization to ensure compliance with any applicable laws.
Raffle regulations in other countries
Other organizations outside of the US and Canada may also be eligible to use our raffle software. Please consult your legal counsel before publishing and running your raffle or lottery to ensure that it is compliant with all laws and regulations in your country and jurisdiction.
- The UK has strict regulations for charity raffles.
- If you are an organization domiciled in New Zealand, you won’t be able to run your raffle online.
How do I find out if I can run a raffle?
The laws for raffles vary by state and province, and sometimes even within states. Since we are not qualified to provide legal advice, we suggest starting with a Google search on the raffle laws in your area, as many jurisdictions require a license or permit to run a charity raffle. This should give you the information you need to get started. You can also consult your legal counsel to ensure you are in compliance with federal, state, and local laws.
Consider a Sweepstakes Instead
Like Raffles, Sweepstakes allow people to donate for a chance to win a prize, but a few key differences make it legal to run them nationally or internationally. If you are not eligible to run a raffle, you can consider a charity sweepstakes.