In the United States, raffles, opportunity drawing and lotteries are governed by the individual states. Each state has its own set of definitions about raffle laws, which organizations are permitted to host a raffle, and what is required to legally host a raffle within the state.
Some states make it a bit more complicated than others, but nonprofit organizations that host ticketing events like raffles often end up hosting more than one raffle per year and some of the biggest campaigns on Zeffy are raffles. AKA raffles raise a lot of money for the nonprofits that host them.
So, yes, the first raffle you host can be a bit time-consuming and confusing, but all the time and energy invested is ultimately worth it. Plus, raffles are a great way to mix up your fundraising campaign portfolio and, as an added bonus, they attract new donors to your nonprofit.
And, of course, we’re here to help by walking you through the process of setting up a raffle and we’ve even got a few tips on picking raffle prizes.
Okay, let’s get started.
Colorado defines a nonprofit raffle as:
… any person risking something of value for the chance to win a prize.
That means that if your nonprofit is hosting any event that includes all three of those elements (1. a person risking something of value, 2. for a chance, 3. to win a prize) you need to follow the following rules and regulations.
Who can host a raffle in Colorado?
First, and most importantly, it is illegal to host a raffle in Colorado without a license. Okay, now that that’s clear, who is allowed to apply for a license?
The only organizations qualified to be licensed to host a raffle in Colorado are a religious, charitable, labour, fraternal, educational, voluntary firemen’s or veterans’ organization that:
- Have a nonprofit organization in Colorado.
- Operate without profit.
- Have been operating for 5 years prior to the applying for a bingo-raffle license.
- Has had an engaged membership during the entire 5 year period.
- Has at least one member who is currently certified or will be certified as a games manager when the license is issued.
Do you need a license to host a raffle in Colorado?
Yes. Colorado requires nonprofit organizations to have a license for every raffle they host.
How does a nonprofit apply for a raffle permit in Colorado?
To apply for a license in Colorado your nonprofit needs to:
1. Complete a license application form. Forms are available on the Colorado Secretary of State’s website or from the Charitable Gaming Section of the Secretary of State’s office.
- Where’s the Secretary of State’s office? Here: 1700 Broadway, Ste. 550, Denver, CO 80290.
2. You will need to include the following with your application:
- Proof of your nonprofit organization’s continuous existence for the 5 years preceding the date of the application. The state of Colorado considers “proof”: articles of Incorporation dated more than five years from the date of application, stating that the organization has members; and copies of at least one bank statement per year for the five-year period; or copies of minutes from at least one general membership meeting per year for the five-year period.
- Proof of your nonprofit organization’s type. (Religious, charitable, labour, fraternal, educational, voluntary firemen’s or veterans’ organization.)
- Your organizations purpose.
- If you have any qualifications for membership.
- Copies of articles, bylaws, constitutions, etc.
- A roster of members who will be responsible for selling raffle tickets and conducting the raffle.
- Your certified games manager’s license number. (You can apply online to become a games manager.)
3. You can pay for your license online with debit or credit.
It can take up to six weeks for the state of Colorado to process your application.
How many raffles does a license allow a nonprofit to host?
The state of Colorado does not limit the number of raffles your nonprofit can host while your license is active. But, you do have to file a voided raffle ticket with the Secretary of State prior to each raffle if the total value of prizes is more than $1,000.00. (It can take up to 7 business days for your ticket to be reviewed, so plan ahead!)
Voided tickets can be emailed to [email protected], faxed to 303-869-4871, dropped off at or mailed to:
Colorado Department of StateBingo-Raffles Division1700 Broadway, Suite 550Denver, CO 80290
And, at least 14 days before any ticket sales, your nonprofit will need to submit to the Secretary of State the website where you will post the winning ticket numbers. (Your website must indicate when the winning ticket numbers will be available.)
Does it cost money for a nonprofit to register for a raffle in Connecticut?
Yes. The total fees your nonprofit will pay depend on the total proceeds from your raffle, but the online fee breakdown is (roughly) as follows:
The license application fee is: $100.
A games manager certificate is: $20.
Quarterly administration fees for a raffle license are:
- If your raffle ticket sales were less than $5000: $0
- If your raffle ticket sales were between $5000 and $100,000: 0.45% of total sales.
- If your raffle ticket sales were over $100,000: 0.55% of total sales.
Can you sell raffle tickets online in Colorado using Zeffy’s ticketing forms?
Yes! Bingo-Raffle licensees can sell raffle tickets online. And, that means that you can use Zeffy’s event management and ticketing platform to organize your raffle and sell tickets.
There are a few things to keep in mind when hosting an online raffle in Colorado:
- If your nonprofit decides to sell raffle tickets online by credit or debit card, all proceeds from the sales need to go directly into your dedicated bingo-raffle account.
- You will need to create a raffle plan that outlines if purchasers will receive a “hard” ticket, how purchasers will receive tickets, how the system produces and tracks tickets, etc.
- You will be asked to submit screenshots of all pages, from the landing page through any communications that purchasers receive from your organization.
- If you are sending hard tickets by email or mail, the state of Colorado will ask to see a draft ticket.
If all that sounds a bit complicated, it is! (But only a bit.) To help, the State of Colorado suggests getting things started by sending them an email ([email protected]) outlining how your raffle will be conducted. From there they’ll help make sure you send them everything they need. We recommend that you reach out sooner rather than later…
For more information, check out our guide on how to sell raffle tickets.
Aside from selling raffle tickets online, Zeffy can help your nonprofit:
Track your raffle sales by adding offline ticket purchases to your campaign.
Keep track of who purchased what and their info (such as email addresses and phone numbers) so you can contact the winner(s).
Keep track of how many tickets you have sold, any additional donations, etc.
Automatically create a contact list to send thank-you emails, re-engage with donors and even let donors know when next year’s raffle comes along.
The state of Colorado also allows you to use the internet to:
- Advertise your raffle. (Newsletters, banners, etc.)
- Display the rules of the raffle.
- Store raffle contact information for your nonprofit, including the eligible organization’s name, address, telephone number, facsimile number, or e-mail address.
- Allow participants to download raffle entry forms for manual completion by raffle ticket purchasers. (But, the forms cannot the submitted online.)
- Answer frequently asked questions.
- List descriptions, photographs, or videos of the raffle prizes.
- List the prize winners.
Good to know:
The state of Colorado requires nonprofits to keep all raffle ticket stubs and unsold tickets for six months following the quarter in which the raffle was held and all other required records for two years. (We go over what records you need to keep a little further on.)
Colorado has a few raffle rules and regulations your nonprofit needs to follow.
What kind of raffle prizes can nonprofits award in Colorado?
The only thing you are not allowed to award as a prize is alcohol.
For more detailed information on offering bigger prizes (such as motor vehicles and real estate) take a look at Rule 8: Raffles of Colorado Secretary of State Bingo and Raffle Games.
If you need some inspiration, check out our raffle basket ideas.
What to include on your nonprofit’s raffle tickets:
You must have been granted a license before you can print or sell any raffle tickets. Check our definitive guide on how to make raffle tickets.
If your nonprofit is planning to give away under $1000 in prizes, then your tickets must clearly show:
- Space for the ticket holder’s name and mailing address.
- The web address where you will post the winning number(s).
- The period of time for which the winning number will be posted.
- A phone number that ticket holders can call to verify the winning number.
If your nonprofit is planning to give away over $1000 in prizes, then your tickets must clearly show:
- Space for the ticket holder’s name and mailing address.
- The web address where you will post the winning number(s).
- The period of time for which the winning number will be posted.
- A phone number that ticket holders can call to verify the winning number.
- Your license number.
- The name of your nonprofit organization exactly as it appears on your license.
- The date, time and place of the draw.
- The price of a ticket.
- A description of the major prize(s).
- Date(s) when the ticket price will increase or decrease.
- Cost if tickets purchased as a package.
- The word “RAFFLE.”
- Print on each ticket a statement indicating that the ticket holder need not be present to win prize.
We also recommend printing a unique ticket number on each ticket. This will help you avoid misinformation and make sure the winners get their prizes.
A few rules around claiming raffle prizes in Colorado:
If your drawing the winning tickets in person:
- You need to provide around 30 minutes, for winner(s) to claim their prize(s). If a winner doesn’t claim a prize, you need to continue drawing tickets until the prize is claimed.
If you notify winners by mail:
- You need to notify all winners within 30 days of the drawing by U.S. postal service certified mail, return receipt requested.
- The notification must indicate the prize won, a contact person’s telephone number, and the time and locationwhere the winner may claim the prize(s).
- If a winner fails to claim a prize within 30 days of receiving your letter, you may keep the prize or offer it in another raffle.
If you notify winners online:
- Within 24 hours of drawing the raffle winners, post all winning ticket numbers and a contact phone number to the website listed on raffle tickets. The winning ticket numbers and phone number must remain posted on the website for at least 30 days after the raffle drawing.
After your nonprofit’s raffle…
The work doesn’t stop once the winners have been drawn. We know, we know, if only it were that simple. But, governments do love their paperwork and the state of Colorado is no different.
The state of Colorado requires your nonprofit to file quarterly reports with all your receipts, expenses and explanations on how your nonprofit used the funds that were earned from your raffle. You can fill out and file the quarterly reports by mail or online and, because Colorado is pretty great, they also have very clear step-by-step instructions.
Good to know:
- You need to file all your receipts from the sale of raffle tickets and expenses related to your raffle in the quarter in which the tickets were sold.
- The fee on gross receipts must be paid to the Secretary of State at the time of filing your quarterly report.
- If no raffle ticket sales were made, and no expenses were incurred, your nonprofit organization still needs to file a quarterly report, but all you have to do is mark “No Activity” across the front of the report.
- If your nonprofit organization only hosts one raffle per year, you can file a final report and surrender your license. (That way you can stop filing quarterly reports.)
→ Use Zeffy free raffle platform to host your next raffle!
Keep learning (our sources):
1. To Raffle Or Not To Raffle?
3. Colorado Secretary of State Bingo and Raffle Games [8 CCR 1505-2]
