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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 California raffle laws and detail the process of how to host a raffle while maintaining compliance with California legislation. We’ll also deep dive on the types of raffles you can run in California and demystify common misconceptions about raffle laws in the golden state.
California Raffles Overview
Let’s get started with a look at how the state of California defines raffles and what criteria are needed to be an eligible tax-exempt organization.
“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.”
Who can host a raffle in California?
Any private, nonprofit organization qualified to conduct business in California for at least one year before conducting a raffle is able to host one. That means your nonprofit does not need 501(c)(3) status to host a raffle in California, but the proceeds must be for beneficial or charitable purposes.
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 to conduct raffles.
You can verify your tax exempt status on the Franchise Tax Board's website. (It's easy!) If you qualify, the raffles must then:
Be conducted by the nonprofit and its employees (no outside vendors or third parties can be used)
Be in good standing with the Attorney General's Office
Be in good standing with the raffle registration registry
Have the supervision of an adult (18+) for the drawing, which takes place in California
How to legally host a raffle in California: A step-by-step guide
If your nonprofit plans to conduct raffles in California, there are a few critical legal steps to follow. From the raffle registration for to reporting, this guide will walk you through the process to ensure everything is done correctly.
Step 1: Check your nonprofit’s eligibility
Before starting to conduct raffles, make sure your organization qualifies to run a raffle in California. Eligible organizations will want to make sure:
You have a valid tax-exempt status
You have been operating in California for at least a year before holding a raffle
You don’t necessarily need to be a 501(c)(3) either. Other nonprofit classifications may also qualify, and you can confirm your eligibility with an Entity Status Letter from the Franchise Tax Board.
Step 2: Register your raffle with the attorney general
To legally hold a raffle, your organization must register with the Attorney General’s office by completing the Raffle Annual Registration Form (CT-NRP-1) and paying a $30 registration fee.
Here’s a glimpse at the Raffle Annual Registration form:
Once your form is complete, you’ll be all set to send it along with your Entity Status Letter and payment to:
Department of Justice, Office of the Attorney General Registry of Charitable Trusts P.O. Box 903447 Sacramento, CA 94203-4470
The registration period runs from January 1 to December 31, but you can apply as early as October 1 for the following year. To allow time for processing, be sure to submit your registration at least 60 days before your raffle date.
Once approved, you’ll receive a confirmation letter with your raffle permit number. This number is required to start advertising or selling tickets.
Step 3: Design around raffle ticket requirements in California
California has a few requirements for your raffle tickets that you want to review before you start putting your creative skills to work to raise funds. Each ticket must be sold with a detachable coupon or stub, both marked with a unique and matching identifier (often a number).
We also recommend raffle tickets contain key information to create a strong fundraiser:
Organization name
Organization contact information
Raffle date and time
Ticket number
Ticket price
Prize information
Drawing location
Age restrictions
License or permit number
Here’s a view into some sample raffle tickets to kickstart your creativity:
There are several ways you can sell raffle tickets in California, and it's important to note that you cannot currently sell online. We’ll detail more on that below, but know that you can absolutely design online and print off tickets to sell in the following legal ways:
Sell tickets in person at events
Host a community gathering to sell tickets
Pop up at local businesses
Send out a personalized invitation mailer
While you can’t complete the transaction online, you can promote your raffle through your website, email, and social media with information about where you’ll be selling in-person or a phone number to contact you. Be sure to track each sale and recipient to make reporting post-raffle easier.
Step 5: Host your raffle
As you’re planning for your raffle and the details of the drawing, review specific requirements that California has in place to be sure your event goes off without a hitch.
California raffle laws to keep in mind
At least 90% of the raffle proceeds must go directly to charitable purposes within California and can't benefit individuals.
The raffle drawing must occur in California and be supervised by someone 18 or older.
Raffles can’t be held at casinos, racetracks, or any gambling establishment licensed under California law.
Slot machines, gaming machines, or any other gambling devices can’t be used to conduct a raffle.
Prizes must be clearly disclosed before ticket sales begin, and restrictions may apply to cash prizes, alcohol, or firearms. Prizes must be awarded as advertised.
Winners should be contacted promptly using the information provided at ticket purchase, and results can also be posted online, in newsletters, or announced at an event.
To maximize participation, start selling tickets at least 6–8 weeks before the drawing. Hold the drawing within 30 days after sales close, and distribute prizes within 60 days.
If tickets are given away for free and no purchase is required to enter, the raffle is exempt from registration.
Step 6: Submit a post-raffle report
After your raffle, you’ll need to file a Nonprofit Raffle Report (CT-NRP-2) by February 1 for the previous year. This is required even if you didn’t end up holding a raffle after registering.
If your organization hosted multiple raffles during the year, all of them should be reported on a single CT-NRP-2 form.
Here’s a view into some of the information you’ll need to prepare:
Total revenue from raffle ticket sales (gross receipts)
Total expenses incurred from running the raffle
Breakdown of costs if expenses exceeded 10% of ticket sales
Detailed description of how the raffle proceeds were used for charitable purposes
Statement certifying that 90% of proceeds went to charitable purposes
Keeping accurate records throughout the process will make this step much easier.
Following these steps will help ensure that your nonprofit’s raffle fully complies with California law. To make things even easier, we’ve created a raffle registration checklist to help you stay organized and track everything you need.
Check out the checklist below to go through each step with confidence!
In a 50/50 raffle, half of the ticket sales go to the winner, while the other half supports the nonprofit’s cause.
California rule: 50/50 raffles are only allowed for specific major nonprofit organizations. Under California law, only private, nonprofit organizations affiliated with professional sports teams can conduct 50/50 raffles. This means most standard nonprofits cannot legally run a 50/50 raffle.
Alternative: Instead of a 50/50 raffle, your nonprofit can hold a traditional raffle. In this type of raffle, 90% of the proceeds go to charitable purposes, and cash prizes are offered within legal limits.
Car raffles
A car raffle offers a vehicle as the grand prize, often donated by a sponsor or purchased at a discount.
California rule: Since raffle prizes cannot be misrepresented, your nonprofit must disclose:
Whether the car is new or used
If the winner is responsible for taxes, registration, and other fees
Any conditions, such as a lease vs. outright ownership
Best practice: Work with a car dealership sponsor to simplify logistics and ensure transparency.
Vacation raffles
The winner of a vacation raffle receives a fully or partially covered vacation, including flights, hotels, or experiences.
California Rule: Your nonprofit must be upfront about:
Blackout dates or travel restrictions
Whether the prize covers all expenses or if winners must pay fees
Whether the vacation is transferable or must be redeemed by the winner
Best practice: Consider partnering with a travel agency to handle bookings and ensure a smooth process for the winner.
Instead of a physical prize, winners can access a unique experience, like VIP concert tickets, a celebrity meet-and-greet, or a sports event.
California rule: Since these raffles involve third-party event tickets, your nonprofit must:
Confirm that tickets are legitimately purchased or donated.
Clarify if the prize includes travel/lodging or just the experience.
Ensure the experience is transferable if the winner cannot attend.
Best practice: Work with event organizers or official ticket vendors to avoid resale issues.
High-value cash prizes
A large cash prize is offered instead of a physical prize.
California Rule: While nonprofits can offer cash prizes, they must still dedicate 90% of proceeds to charitable purposes, meaning the prize cannot take up a significant portion of ticket revenue.
Best practice: Instead of one big cash prize, consider multiple smaller prizes to encourage participation while staying within legal limits.
These raffles offer high-end products like jewelry, electronics, or designer handbags.
California rule: Nonprofits must:
Accurately describe the prize (brand, model, retail value)
Avoid misleading claims about exclusivity or rarity
Clearly state whether the item is new, used, or refurbished
Best practice: Obtain items directly from a retailer or sponsor to avoid authenticity concerns.
Online raffles in California: Breaking it down
California law strictly prohibits selling, trading, or redeeming raffle tickets over the internet. You cannot use platforms like Zeffy, PayPal, or Venmo to process ticket sales online, but that doesn’t mean nonprofits can’t leverage the internet for their raffles at all.
While selling tickets online is illegal, there are several legal ways to use online tools to promote and manage your raffle effectively.
Here’s what you can’t do online
As documented in California Penal Code Section 320.5, a nonprofit may not:
Sell, trade, or redeem raffle tickets online (including via a website, email, or third-party payment processors).
Conduct the raffle drawing online using a random number generator or digital selection process.
Accept credit card payments online for raffle ticket purchases.
Even if you use an online platform specifically designed for nonprofit raffles, you must process all ticket sales offline.
Here’s what you can do online
Even though online ticket sales are prohibited, eligible organizations can still use the internet to promote and manage their raffles and other fundraising efforts. Here’s what’s allowed under California law:
You can promote your raffle through email, social media, and your website, including sharing details in newsletters, banners, and blog posts.
A webpage or post explaining how the raffle works, who’s eligible, and where the proceeds go is entirely legal.
You can showcase photos, videos, and descriptions of prizes before the drawing and announce winners online afterward.
You can provide printable forms for ticket purchases if buyers submit them offline (by mail or in person).
Your website can list your nonprofit’s name, address, phone number, and email for raffle-related inquiries.
While you can’t process payments, platforms like Zeffy allow you to:
Log offline ticket purchases to keep records organized.
Store buyer details (name, email, phone number) to contact winners (like a donor management system)
Send thank-you emails & follow-ups to re-engage supporters for future raffles.
Want to change the law?
If you believe nonprofits should be allowed to sell raffle tickets online, you can contact California’s Nonprofit Raffles Program to advocate for policy updates.
California Raffle Laws - FAQ
Yes, nonprofit religious organizations, schools, colleges, hospitals, and other private nonprofits with state tax-exempt status can hold fundraising raffles in California. However, they must follow strict raffle rules, including registering annually with the California Attorney General unless exempt.
Most nonprofits cannot hold 50/50 raffles. In 2015, California law allowed only nonprofit organizations affiliated with major league sports teams to conduct 50/50 fundraising raffles at home games. For standard nonprofit raffles, at least 90% of proceeds must support charitable purposes, making a 50/50 split illegal for most organizations.
CNo, raffle tickets cannot be sold, traded, or redeemed online under California law. However, nonprofits can use the internet to:
Advertise the raffle through emails, social media, or websites.
List prizes with photos, videos, and descriptions.
Publish official rules and FAQs.
Provide downloadable entry forms that must be printed and submitted offline.
Yes, schools, colleges, religious organizations, and hospitals can hold raffles without registering with the California Attorney General’s office. However, they must still follow state raffle regulations.
Check out over 30 fundraising ideas for schools
Yes, but the nonprofit must own the car outright or receive it as a voluntary donation. No third-party company (such as a car dealership) can benefit from the raffle proceeds. Participants must know all taxes, registration fees, and transfer costs.
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
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