In the United States, each state has it’s 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.
Yes, the first raffle you host can be time consuming and confusing, but all the time and energy invested is ultimately worth it. (Some of the biggest campaigns on Zeffy are raffles. AKA raffles raise a lot of money for the nonprofits that host them.) Plus, raffles are a great way to mix up your fundraising campaign portfolio and, as an added bonus, attract new donors to your nonprofit.
We’re here to help by walking you through the process of setting up a raffle on Zeffy and we’ve even got a few tips on how to create successful charity raffles and lotteries.
Okay, let’s get started.
The state of Texas makes holding a raffle pretty easy. But, before we go any further, the Charitable Raffle Enabling Act (CREA) defines a raffle as:
… the award of one or more prizes by chance at a single occasion among a single pool or group of persons who have paid or promised a thing of value for a ticket that represents a chance to win a prize.
To host a raffle in the state of Texas you need to be a qualified nonprofit organization and fall into one of the following categories: (Individuals and for-profit businesses cannot hold raffles)
You do not have to register or obtain a license or permit to host a raffle in Texas. (Go Texas!) However, you do have to be qualified nonprofit organization. (See previous section.)
Although you do not have to register or provide and follow-up forms, there are a couple rules that need to be followed:
We won’t lie, this is a bit of a grey area in Texas. CREA states that an organization may not “sell or offer to sell tickets for a raffle statewide.” And, “statewide” is often thought to include the internet, but it is not at all clear.
Raffle tickets in the state of Texas need to clearly display the following information:
We think it’s also probably a good idea to include a ticket number and the information of the person who purchased the ticket so that you can contact the winners after the draw.
We’ve whipped up an a example to give you a better idea:
Nope. Texas doesn’t require nonprofit organizations to register their raffles.
Texas Charitable Raffle “Cheat Sheet”.
Charitable Raffle Enabling Act.
Information on Charitable Raffles and Casino/Poker Nights.
1. Title 13. Sports, Amusements, and Entertainment: Chapter 2002 - Charitable Raffles.
2. Raffle Ticket Rules in Texas.
3. Charitable Raffles and Casino/Poker Nights.