Learn legal restrictions for Raffles that may prevent you from running one on RallyUp.
In the U.S., Raffles are subject to state and local regulations that prevent some organizations from running a Raffle on RallyUp. If you’re wondering about your eligibility, your customer type or location may be the reason.
Why can’t I run a Raffle on RallyUp?
There are two main reasons why you can’t run a Raffle on RallyUp: your customer type or your organization’s location.
Does my customer type affect whether I can run a Raffle?
Yes, your customer type determines whether you can host a Raffle on RallyUp. Here is a summary of this campaign type and access by customer type:
- Organizations (nonprofits, schools, community groups, etc.) can run both online and offline Raffles, provided they are located in a state that permits them.
- CSRs (for-profit businesses fundraising for a 501(c) organization) can only run offline Raffles. To run an online Raffle, you must first receive an invitation from the benefiting organization.
- Advocates (individuals fundraising independently for a 501(c) organization) cannot run them at all. To run a Raffle, you must first receive an invitation from the benefiting organization.
Not sure which customer type applies to you? Understand: Who Can Use RallyUp to Fundraise
Why can’t I add a Raffle to my Campaign based on location?
Even if your customer type allows Raffles, you won’t be able to add a Raffle to your Campaign if your organization is located in one of the following states:
- Alabama
- California
- Hawaii
- Indiana
- Iowa
- Kansas
- Minnesota
- New Jersey
- New Mexico
- Rhode Island
- Utah
- Washington
- Wisconsin
What should I do if I can’t run a Raffle?
If your customer type or location prevents you from running a Raffle, consider running a Sweepstakes instead. Sweepstakes function similarly to Raffles but have fewer geographic restrictions and can be run nationally or internationally. Unlike Raffles, Sweepstakes are not classified as gambling because they require a free method of entry. Additionally, Sweepstakes are available to all customer types.
Understand: Raffles vs. Sweepstakes
Frequently Asked Questions
What should I do if my state prohibits online Raffles?
If your organization is located in a state that prohibits online Raffles, consider running a Sweepstakes instead. Sweepstakes have fewer geographic restrictions and can be run nationally or internationally with proper compliance measures.
Understand: Charity Sweepstakes
Can I host a Raffle for a personal cause or individual fundraiser?
No, fundraising for personal causes is not allowed on RallyUp under any circumstances. This type of Campaign must benefit a charitable organization and meet state and local regulatory requirements.
Are the restrictions different for organizations outside the United States?
Organizations outside the US should consult their legal counsel before running a Raffle to ensure compliance with local laws. For organizations domiciled in New Zealand, online Raffles are not yet available but support for this feature is coming soon.
Why can’t I host a Raffle as an Advocate?
Advocates cannot run Raffles without first receiving an invitation from the organization they are fundraising for. Once an organization invites you, you gain access to online Raffles. To get started, reach out to the organization and ask them to invite you through RallyUp.
How-to: Run a Charity Raffle or Sweepstakes If You Are an Individual
What is the difference between a Raffle and a Sweepstakes?
Both Raffles and Sweepstakes allow donors to purchase entries for the chance to win a prize. The key difference is that Raffles require donors to pay for entries with no free option, while Sweepstakes must offer a free method of entry. This distinction means Sweepstakes are not classified as gambling, giving them fewer geographic restrictions.