Ensure you’re legally allowed to run a Raffle before creating your Campaign.
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 campaign.
Note that Raffles may be run by qualified organizations only. Raffles to benefit personal causes are not allowed on RallyUp under any circumstances.
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.
What are the legal requirements for US organizations running Raffles?
The U.S. 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
- New Jersey
- New Mexico
- Rhode Island
- Utah
- Washington
- Wisconsin
Can organizations outside the US run online Raffles?
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.
Should I run a Sweepstakes instead of a Raffle?
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.
Understand: Raffles vs. Sweepstakes
Frequently Asked Questions
What type of organization can legally run a Raffle in the United States?
Only registered 501(c) organizations can run charity Raffles in the United States according to federal IRS rules. Raffles to benefit personal causes are not allowed on RallyUp under any circumstances.
Which states prohibit online Raffles?
Thirteen states prohibit online charity Raffles entirely: Alabama, California, Hawaii, Indiana, Iowa, Kansas, Minnesota, New Jersey, New Mexico, Rhode Island, Utah, Washington, and Wisconsin. Organizations domiciled in these states cannot run Raffles online.
Who is responsible for ensuring my Raffle is legally compliant?
The organization benefitting from the Raffle is responsible for the Raffle’s legal compliance. RallyUp strongly advises getting guidance from your legal counsel or state attorney general’s office if you’re unsure of the regulations for your location.
Do Raffle laws vary by location?
Yes, every state, county, and locality may have its own Raffle laws that vary widely by jurisdiction and frequently change. It’s important to research your specific area’s requirements and consult legal counsel before launching your Raffle.
What’s a good alternative if I can’t run a Raffle in my state?
Sweepstakes are an excellent alternative to Raffles. Like Raffles, Sweepstakes allow people to donate for a chance to win prizes, but key differences make it legal to run them nationally or internationally with fewer geographic restrictions.