In the United States, each state has its own set of definitions and laws that dictate what is considered a raffle, which organizations are permitted to host a raffle, and what is required to legally host a raffle.
We're here to help by walking you through the process on how to host a raffle and we've even got a few tips on how to sell raffle tickets.
Okay, let's get started.
The state of California defines a nonprofit raffle as:
A raffle is a type of lottery in which prizes are awarded to people who pay for a chance to win. Each person enters the game of chance by submitting a detachable coupon or stub from the paper ticket purchased.
Any private, nonprofit organization that has been qualified to conduct business in California for at least one year prior to conducting a raffle and is exempt from taxation. That means that your nonprofit does not need 501(c)(3) status to host a raffle in California.
(If your nonprofit qualifies under sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701l, 23701t, or 23701w of the Revenue and Taxation Code, you're all good.1
You can verify your tax exempt status on the Franchise Tax Board's website. (It's easy!) If you qualify, the raffles must then:
And, if you meet the nonprofit eligibility requirement, you must also:
A raffle registration year in California starts on January 1 and ends on December 31. You can register any time after October 1 for the following year. To register, just fill out the raffle annual registration form(CT-NRP-1 form) and pay the $30 registration fee.
You need to register for a nonprofit raffle license at least 60 days BEFORE the scheduled date of your raffle to make sure the registry staff have enough time to process your form.3
We've even created a raffle registration checklist to guide you through the process of registering.
Unfortunately, for now, you cannot operate or conduct an online raffle in California. We know, we think it's a bit of an outdated rule too.
But, what does “operate or conduct a raffle over the internet” mean? Well, you can't use Zeffy's event and free online raffle platform to sell or redeem your raffle tickets. California law also states that “an eligible organization shall not be deemed to operate or conduct a raffle over the internet, or sell raffle tickets over the Internet”.1
So, can a nonprofit sell raffle tickets using Zeffy? Not yet. But, when it comes to hosting a nonprofit raffle in California, you can still use Zeffy for:
The state of California also allows you to use the internet to:
There aren't too many must haves on raffle tickets in California.
Each ticket you sell has to have a detachable coupon or stub, and both the ticket and its coupon or stub need to be marked with a unique and matching number.1
So, you can purchase pre-made tickets or get inspired by our sample ticket:
There is a raffle registration fee $30 associated with the CT-NRP-1 form
Your work doesn't end when the last ticket stub is drawn. In California, if you registered to host a raffle, you must complete and submit a nonprofit raffle report (Nonprofit Raffle Report: CT-NRP-2) by February 1 for the previous year. You have to complete the form regardless of the number of raffles you held during the registration period—even if you ended up not holding any.
We know, we know. Needless paperwork is a bit annoying. But, that's how it is.
Check out the 501c3 raffle rules and regulations of your state. Learn how to hold your nonprofit raffle legally.
Learn how a raffle works and how to organize a successful one. From dealing with raffle tickets and prizes to promoting your raffle, check out our X easy steps for running your event
Looking for exciting and budget-friendly raffle basket ideas ? Check out our 77 basket gifts ideas for your fundraising event.