Learn what makes Raffles different from Sweepstakes to determine which one best fits your fundraising needs.
This information is provided for general informational purposes only and does not constitute legal advice. Laws change frequently. Last reviewed: August 3, 2026.
When comparing Raffles vs. Sweepstakes for your fundraiser, both allow donors to purchase entries for the chance to win a prize. However, Sweepstakes require you to offer a free method of entry, so each Component is subject to different regulatory requirements. Here is what you need to know about each option.
What are the requirements for charity Raffles?
Rules regarding charity Raffles will differ depending on where your organization is based.
What is a Charity Raffle and How Does It Work?
What do US organizations need to know about running Raffles?
Organizations based in the United States should consider the following:
- Federal regulations: RallyUp does not permit non-501(c)(3) organizations to operate Raffles on its platform due to IRS regulations.
- 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 where your organization is located.
- States where the online sale of Raffle entries is not currently permitted: If your organization is domiciled in one of the following states, you won’t be able to sell Raffle entries online:
- Alabama
- California
- Hawaii
- Indiana
- Minnesota
- New Jersey
- New Mexico
- Utah
- Washington
Selling Raffle entries online in these states is not permitted under state law, regardless of which fundraising platform you use. RallyUp does not permit publishing Campaigns that sell online Raffle entries in these states.
Insights: See If You’re Eligible to Run a Raffle
Some organizations look into a Sweepstakes as a separate option. Sweepstakes carry their own rules and requirements. Whether a Sweepstakes is permitted — and what’s required to run one — depends on several factors, not just your state, so it’s the organizer’s responsibility to research the applicable rules and confirm legality for their own situation, including consulting with the relevant authorities and their own legal counsel as needed. RallyUp doesn’t provide legal advice or represent that any Campaign is legal.
Note that Sweepstakes on RallyUp are available only to US-based organizations.
How do Sweepstakes differ from Raffles?
Because they include a free method of entry, Sweepstakes can be subject to different geographic regulatory requirements than Raffles. Understanding the differences between Raffles and Sweepstakes can help you choose the format that works best for your organization.
Whether a Sweepstakes is permitted — and what’s required to run one — depends on several factors, not just your state, so it’s the organizer’s responsibility to research the applicable rules and confirm legality for their own situation, including consulting with the relevant authorities and their own legal counsel as needed. RallyUp doesn’t provide legal advice or represent that any Campaign is legal.
Understand: Charity Sweepstakes
What are the requirements for running a Sweepstakes?
All RallyUp Sweepstakes require:
- Free entry option
Understand: Sweepstakes Free Entries
- Official rules displayed on the Campaign Page
Understand: Sweepstakes Official Rules
- Automated drawing (winners must be drawn by RallyUp’s randomization algorithm)
Understand: Drawing Raffle and Sweepstakes Winners
- Registration and bonding if the total retail value for all prizes is $5,000 or more
Understand: Sweepstakes Prize Registration and Bonding
- Approximate Retail Value (ARV) of each prize
What restrictions apply to Sweepstakes Campaigns?
All RallyUp 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
If you have questions about your eligibility or legal requirements, we recommend consulting your legal counsel or the appropriate official regulatory resources for your area.
Frequently Asked Questions
Raffles vs. Sweepstakes: what’s the main difference?
When it comes to Raffles vs. Sweepstakes, the main difference is the entry method. Raffles require donors to pay for entries without a free option, while Sweepstakes must offer a free method of entry. This distinction affects their legal requirements and geographic restrictions.
Which states currently do not permit the online sale of Raffle entries?
Nine states currently do not permit the online sale of Raffle entries: Alabama, California, Hawaii, Indiana, Minnesota, New Jersey, New Mexico, Utah, and Washington.
Can I run a 50/50 Raffle as a Sweepstakes?
No, 50/50 or split-the-pot drawings are prohibited for Sweepstakes. If you want to run a cash prize fundraiser where winners receive a portion of proceeds, you must use a Raffle format and comply with all applicable Raffle laws.
Can I manually draw winners for my Sweepstakes?
No, Sweepstakes winners must be drawn using RallyUp’s randomization algorithm. Manual drawing is prohibited for Sweepstakes to ensure fairness.