Learn what makes Raffles different from Sweepstakes to determine which one best fits your fundraising needs.
Both Raffles and Sweepstakes allow donors to purchase entries for the chance to win a prize. However, Raffles are prohibited in some areas and Sweepstakes require you to offer a free method of entry in addition to other regulations.
Charity Raffles
Rules regarding charity Raffles will differ depending on where in the world your organization is based.
US Organizations
Organizations based in the United States should consider the following:
Gambling laws: Federal government regulators view Raffles as a form of gambling since donors make a payment in exchange for a chance to win something, just as you'd do at a casino.
Federal requirements: Raffles for charitable purposes are allowed at the federal level for 501(c) organizations.
State and local requirements: Organizations running Raffles must comply with the state and local raffle laws and regulations that apply. Please check the state and local laws in the area your organization is domiciled. Note that state and local requirements may be stricter than federal requirements.
States that prohibit online Raffles: Some states prohibit online Raffles, making it very difficult to run an interstate Raffle and impossible to run one nationally:
Alabama
California
Hawaii
Indiana
Iowa
Kansas
Minnesota
New Jersey
Rhode Island
Utah
Washington
Wisconsin
If your organization is fundraising in one of these states, you may want to consider running a Sweepstakes instead. They function similarly to Raffles but have fewer restrictions geographically.
Organizations Outside of the US
Please consult your legal counsel before running your Raffle to ensure that it is compliant with all laws and regulations in your country and jurisdiction.
Charity Sweepstakes
Because they require a free method of entry, Sweepstakes are not considered gambling and generally have fewer geographic regulatory restrictions than Raffles. Entries can be sold nationally or internationally, so Sweepstakes are an excellent choice for international organizations.
Requirements
Sweepstakes require:
Free entry option (limited to one per person)
Official rules displayed on the Campaign Page
Approval before going live
Automated drawing (winners must be drawn by Givebacks' certified randomization algorithm)
Registration and bonding if the total retail value for all prizes is $5,000 or more
Approximate Retail Value (ARV) of each prize
Restrictions
Sweepstakes prohibit the following:
50/50 or split-the-pot drawings
Allowing donors to purchase entries for specific prizes
Limiting the total number of entries available for purchase
Manually drawing winners
The appearance of the word “Raffle” anywhere on your Campaign Page
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