Raffles are a great fundraising activity for charities, schools, clubs, and nonprofit groups. They attract new donors, create awareness for your nonprofit, and can quickly raise money.
Online raffles are becoming increasingly popular these days, with some local governments even allowing raffle tickets to be sold and drawn online.
But before we go any further, let’s define the differences between running a raffle online and a good old-fashioned in-person raffle.
What are online raffles?
An online raffle is similar to a traditional raffle, but instead of taking place in person with physical tickets, it happens, you guessed it, online. In an online raffle, participants purchase electronic tickets through an online fundraising or raffle platform for a chance to win.
The benefits of selling raffle tickets online are:
- You can create raffle tickets online without worrying about printing costs
- You can reach a larger audience.
- Digital raffle tickets are easy to keep track of.
- An online fundraising event can reach more donors and increase ticket purchases.
How to run an online raffle in 11 easy steps
The best way to conduct a raffle over the internet is to, well, start. But, like most things, the hardest part is figuring out how to start. (And no, it's not with ticket sales.) Luckily, we’re here to help.
Step 1: Get to know the raffle laws in your area
Before proceeding with your raffle planning, we recommend checking out the local laws in your province or state. Most jurisdictions allow nonprofits and charities to hold raffles to raise money for their causes, but not as many allow them to host raffles online.
We’ve started a series of articles that deep dive into the raffle and lottery rules and regulations in every province in Canada and every state in the USA. (It’s a work in progress! If you’re province or state isn’t there, let us know and we will get to work!)
You can also check out the US raffle rules by state.
Step 2: Make sure your nonprofit is eligible
In Canada and the US, the provinces and states that allow raffles to be held typically only will enable them to be held by registered nonprofits or charities with a 501(c)3, etc. status.
It’s worth checking with your local government to ensure your nonprofit qualifies. But, the legal requirements in most provinces and states say:
- You are good to go if your nonprofit has a 501(c)3 status or is a registered charity in Canada (T3010).
- If you are a registered nonprofit in your state or province without 501(c)3 or T3010 status, you are most likely good to go—but it’s still worth double-checking.
Step 3: Choose they type of raffle fundraiser you want to host
Depending on your audience, you can choose your fundraising strategy as a nonprofit organization. If people know your mission well, you may want to maximize your income to further your mission, so choosing a raffle might be best. If you want to reach people motivated mainly by the prize, hosting a 50-50 raffle might be better!
Some factors to consider:
- How will you be primarily selling tickets?
- Will you have multiple prizes?
- Are ticket bundles an option to help you raise funds?
- Which raffle platform can make it easy to host your fundraising event?
Step 4: Fill out and submit all the required forms and include any additional information and fees
There’s not much we can add to this section, but we recommend reading through the entire application before starting to fill it out. Read or watch their how-to guide if your province or state has one.
It’s also a good idea to contact your local government if it’s your first time applying. They might be able to give you a few tips or even help you fill out the application form.
Step 5: Wait for your confirmation
This one is important. The states that require you to have a license or permit to hold a raffle mean it. So, apply for your license or permit well in advance. Most states require 30 days, some 60 days, and a few 90 days.
Whatever the case, don’t host your raffle until you have your license or permit in hand. (And pay special attention to the number, size, and type of raffle your permit or license allows you to hold.
Step 6: Reach out to local businesses to ask for prizes and sponsors
To host a successful raffle, you will need great sponsors and prizes! We recommend reaching out to current donors and local businesses.
When you reach out, present the opportunity as a collaboration by emphasizing what’s in it for them. You are providing free advertising for the company; they just need to offer a prize!
Not all prizes must be merchandise—they could include services, experiences, or gift cards.
When looking for raffle prizes, it’s important to get creative and use your entire community—the more exciting they are, the more people will want to participate.
Step 7: Make an online raffle website
There are a few paid fundraising platforms out there that can help you host your online raffle.
Even if your province or state doesn’t allow you to sell raffle tickets online, most can still help you keep track of your tickets sold, send emails and newsletters, display rules and regulations, showcase your prizes, etc.
But there’s only one 100% free online raffle platform for nonprofits: Zeffy.
Step 8: Make sure your virtual raffle tickets have the right information on them
Most provinces and states have minimum requirements for what has to be included on your online tickets. Zeffy’s online raffle solution automatically generates raffle tickets for you that you can easily customize.
In general, it’s a good idea to include:
- Space for the ticket holder’s name and mailing address.
- The web address where you will post the winning number(s).
- The period of time for which the winning number will be posted.
- A phone number that ticket holders can call to verify the winning number.
- Your license number.
- The ticket number.
- The name of your nonprofit organization exactly as it appears on your license.
- The date, time and place of the draw.
- The ticket prices. (The cost for individual and ticket packages.)
- A description of the major prize(s) and raffle items.
- Date(s) when the ticket price will increase or decrease.
- The word “raffle.”
- Print on each ticket a statement indicating that the ticket holder need not be present to win prize.
- Any house rules.
- Be sure to add any sponsor logos!
This template is a great example. Feel free to use it as a guide to make your own, and check our article on how to make raffle tickets!
Step 9: Start selling and distributing raffle entries
These days, using both online and in-person sales is a great way to get the word out. (Just keep in mind that every ticket needs its serial number, meaning if you want a lottery with a mix of online and paper ticketing, they need to be numbered in a sequence.)
Zeffy offers easy and 100% free raffle and lottery ticketing forms that allow you to customize and sell more raffle tickets. Using the Zeffy platform will allow you to create a custom ticketing form for online ticket sales and/or separate printed tickets. You can also integrate the buyer data you collect from in-person sales and connect your Zeffy profile to other apps or services you are using.
Depending on the rules set out by your regulatory body, you may be permitted to sell your raffle tickets solely online and offline or, in some cases, only offline.
Zeffy can help you with all of these options! We can generate and send raffle tickets to participants, or you can simply use the platform to help people buy tickets. It will all depend on the regulations in your province and the type of raffle you are running.
Step 10: Promote your online raffles
Once you’ve set everything up, you must find people to participate!
- Reach out to current and past donors.
- Target groups within your community that might be interested in getting more involved in your cause.
- Contact local businesses to promote your raffle fundraisers.
- Share the raffle on social media platforms. (Facebook, on your website, etc.)
And, as always, real stories go a long way. So, if you have hosted raffles or lotteries in the past, get people excited by sharing past winners’ stories! Post about what they did with their raffle prizes and how the money raised from the event was used towards achieving your organization’s mission.
Step 11: Submit your nonprofit’s raffle report after your raffle has ended
We know the last thing anyone wants is more paperwork. But most provinces and states require nonprofits to submit specific record-keeping forms and keep everything raffle-related for at least three years.
Especially if you're using a random number generator to select ticket numbers as winners, be sure to capture all of the information you'll need.
Most online raffle platforms will help you track ticket sales, names, addresses, prizes, etc. So, even if your state doesn’t allow online raffle ticket sales, it’s still a good idea to equip yourself with a platform or raffle website to help with your fundraising efforts.
The 3 best online raffle platforms
Your online raffle platform can help you create an experience to purchase tickets and share enticing prizes from social media to your website. We’re going to list our favorite ones here. (Aside from Zeffy, obviously.) Things to keep in mind when choosing your online event and raffle ticket solution:
- The pricing (Dig deep to find those hidden fees)
- The features
- The solutions (Is it just for raffles, or can you use it for all your fundraising needs?)
- Raffle laws (Is it easy to stay compliant?
Zeffy: The only 100% free online raffle solution for nonprofits
You know we love Zeffy. And really, what’s not to like? It’s 100% free for nonprofits—we even cover the credit card transaction fees. And our free raffle platform can help your nonprofit plan your online raffle events.
Our raffle features make running your online raffle easy:
- Create a simple form to add to your raffle website.
- Automatically generate and send online raffle tickets.
- Accept all payment types without paying all the fees.
- Customize your nonprofit's forms and raffle tickets.
- Stay in touch before, during, and after your event.
- Export reports.
Zeffy doesn’t just offer a raffle solution; we are a completely free and complete online fundraising platform that offers:
Givesmart can help inspire and engage your donors
Givesmart is another excellent option for nonprofits looking for a complete fundraising platform.
The downside: Givesmart’s pricing isn’t super transparent. They charge transaction fees (3.5 - 4% + $0.30 / transaction), but their platform and monthly payments are not publicly listed.
Givebutter has helped nonprofits raise over $1 billion
Givebutter has grown quickly over the past couple years. Their list of solutions is impressive and, if your donors are generous, it can end up costing you less than other paid platforms.
The downside: Givebutter claims to be free, but some hidden fees can sneak up on you.
The pricing: If optional tips are enabled, the basic option has no platform fees. If optional tips are disabled, Givebutter charges:
- 1% Donation forms
- 3% Fundraising page
- 5% Event/auction
- 2.9% + $0.30 per transaction
Givebutter Plus offers contact-based pricing starting at $29 per month, plus the 2.9% + $0.30 per transaction fee.
Online raffle example
Still not convinced that Zeffy’s online raffle solution is right for your nonprofit? Big Brothers Big Sisters of St. Thomas-Elgin have been making the most of Zeffy’s raffling solution for over a year and have already saved $1,791 by not paying any fees.
They’ve been so happy with Zeffy that they use more of our free fundraising solutions every year.
Frequently asked questions: Raffle ticket sales
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