Charity raffles are a popular and engaging way to raise money for your organization. Charity raffles fall under specific federal and state regulatory requirements that govern their use, however, so you’ll want to ensure that you can legally run a raffle before creating your experience.

Note that raffles may be run by qualified organizations only. Raffles to benefit personal causes are not allowed on RallyUp under any circumstances.

This article provides a brief overview of raffle regulation in the US. 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.

Organizations in the US

The federal government allows only registered 501(c) organizations to run charity raffles. To comply with IRS rules, we cannot approve U.S. raffles that do not meet this requirement.

Every state, county, and locality may have its own raffle laws that vary widely by jurisdiction and frequently change. We recommend starting with a Google search of the raffle laws in your area and then consulting your legal counsel to check the legality for your specific needs.

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
• California
• Hawaii
• Indiana
• Iowa
• Kansas
• Minnesota
• Montana*
• New Jersey
• Rhode Island
• Utah
• Washington
• Wisconsin

*Montana (raffle ticket purchases by credit card are prohibited)

Organizations outside of the US

Please consult your legal counsel before publishing and running your raffle or lottery to ensure it complies with all laws and regulations in your country and jurisdiction. If you are an organization domiciled in New Zealand, you won’t be able to run your raffle online.

Charity Sweepstakes

Sweepstakes are like raffles in that people can donate for a chance to win a prize or prizes, but a few key differences make it legal to run them nationally.
Raffles and Sweepstakes: What’s the Difference?