How is Zeffy free?
How is Zeffy free?
Zeffy relies entirely on optional contributions from donors. At the payment confirmation step - we ask donors to leave an optional contribution to Zeffy.
Learn more >
Disclaimer: The information provided in this guide is for educational and informational purposes only and does not constitute legal advice. Laws vary by state, and each organization is responsible for its own compliance.
Most 50-state sweepstakes charts are written for brands, not nonprofits. For a nonprofit, a sweepstakes is the simple way to run a prize drawing legally in every US state, and the rules come down to a few basics Zeffy builds in for you.
Search "sweepstakes laws" and you'll find long compliance charts covering all 50 states. Most of them were written for brands and marketing agencies running big national giveaways. If you're a nonprofit planning a fundraising drawing, the picture is a lot smaller. Get three basics right, know the few state rules that come up most, and remember that laws vary by state.
This guide walks through each piece in plain words.
Every sweepstakes rule starts from one simple test. A drawing has three possible parts:
When all three are present, you're running a lottery. States tightly control lotteries. A sweepstakes keeps the prize and the chance but removes the required payment. That's the whole difference.
To remove "pay to play," a sweepstakes needs three things:
Beyond those basics, there's one more thing to keep in mind. The FTC and state attorneys general look at misleading promotions. So say clearly what people can win, how to enter and when you'll draw, and then do what you said.
These three basics are built into every Zeffy sweepstakes by default, so you can't skip one by accident.
For a small nonprofit: on Zeffy, these three basics come with every sweepstakes, so the part that matters most is already handled.
"No purchase necessary." This line is not marketing copy. It tells people they can enter without paying, and it's the visible sign that your drawing has a free way in. It only works if it's true. The free entry has to be easy to find and easy to use, with the same odds as a paid entry.
"Void where prohibited." This line says the promotion doesn't apply anywhere it isn't allowed. It's a standard part of official rules. It doesn't replace knowing your own state's rules, though. Think of it as a backstop, not a shield.
For a small nonprofit: put both lines in your official rules, and make sure your free entry matches what "No purchase necessary" promises.
This is where most of the worry comes from. Three states come up again and again. Here's what each one covers.
| State | Who the rule covers | Prize threshold | What it asks for |
|---|---|---|---|
| New York | Sweepstakes open to New York residents | More than $5,000 in prizes | Registration and a bond |
| Florida | Game promotions (does not apply to nonprofit organizations) | More than $5,000 in prizes | Registration and a bond |
| Rhode Island | Retail businesses running a promotion to promote their retail business | More than $500 in prizes | A filing with the Secretary of State and a $150 fee |
New York has registration and bond rules for sweepstakes with more than $5,000 in prizes open to New York residents. If your prizes total more than $5,000 and New Yorkers can enter, this is the rule to look at closely before you launch.
Florida has registration and bond rules for game promotions with more than $5,000 in prizes. Many nonprofit organizers read about this rule and assume it covers them. It doesn't. Florida's game promotion law does not apply to nonprofit organizations. The rule is real, and it's aimed at businesses running promotions.
Rhode Island requires a filing with the Secretary of State and a $150 fee when a retail business runs a promotion with more than $500 in prizes to promote its retail business. If your organization runs a retail shop and plans a drawing tied to it, read this rule before you launch.
On Zeffy, the New York and Florida rules don't come into play: Zeffy doesn't currently accept sweepstakes with more than $5,000 in prizes in New York or Florida. If another state rule applies to you, such as Rhode Island's retail filing, the filing is yours to complete.
For a small nonprofit: the big "50-state" charts make this look huge. In practice, check New York if your prizes total more than $5,000, know that Florida's rule does not apply to nonprofits, and check Rhode Island's rule if a retail business is involved.
A few more details belong on your checklist (the step-by-step guide to running a sweepstakes covers prizes, promotion and the drawing):
For a small nonprofit: set clear entry rules, tell winners about possible taxes, and don't call entries donations. That covers most of what's left.
Zeffy's free sweepstakes tool builds the basics into every campaign. Sweepstakes sits inside the Raffle & Sweepstakes campaign type, where it's selected by default as the recommended option. Here's what's built in:
Every entrant, free or paid, is added to your free donor CRM, so every entrant lands on the same donor record as their other gifts, tickets and memberships. Zeffy sends a receipt for every transaction.
Zeffy is the free all-in-one fundraising platform with a donor CRM built in, and sweepstakes follow the same model: no platform fee, no transaction fee, no credit card fee. Ever. Zeffy offers sweepstakes to organizations in every US state and in the UK.
Zeffy writes the official rules and adds the free entry form to your campaign page. Zeffy doesn't currently accept sweepstakes with more than $5,000 in prizes in New York or Florida, and any other state filing stays with your organization. Laws vary by state, so check yours before you launch.
For a small nonprofit: the hard part of the basics is done for you. Your job is to check your state's rules and pick great prizes.
A sweepstakes lets a nonprofit run a prize drawing legally in every US state, as long as the basics are in place: official rules, the free entry the law requires and equal odds. Zeffy builds them in. New York's rules matter if your prizes total more than $5,000. Florida's rules don't apply to nonprofit organizations. Rhode Island's filing covers retail businesses with more than $500 in prizes. For everything else, remember that laws vary by state and your organization is responsible for its own compliance.
Sweepstakes rules vary by state. Zeffy offers sweepstakes to organizations in every US state; each organization is responsible for following its state's rules. The basics are a free way to enter, the same odds for free and paid entries, and written official rules.
It depends on your state and your prizes. New York has registration and bond rules for sweepstakes with more than $5,000 in prizes. Florida has similar rules, but they do not apply to nonprofit organizations. Rhode Island requires a filing and a $150 fee when a retail business runs a promotion with more than $500 in prizes to promote its retail business. Laws vary by state, and each organization is responsible for its own compliance. Zeffy doesn't currently accept sweepstakes with more than $5,000 in prizes in New York or Florida.
A surety bond is a guarantee from a bonding company that promises the prizes will be awarded as advertised. New York and Florida require one for prize pools of more than $5,000 (Florida's rule does not apply to nonprofit organizations). Zeffy doesn't currently accept sweepstakes with more than $5,000 in prizes in New York or Florida.
No. Florida has registration and bond rules for game promotions with more than $5,000 in prizes, but Florida's game promotion law does not apply to nonprofit organizations. It's one of the most common misconceptions about sweepstakes rules.
No. Amounts paid for entries are not tax-deductible, because entrants get a chance to win a prize in return. Winners may also owe tax on the value of the prize and should check with a tax professional.
A raffle requires people to pay for a chance to win. A sweepstakes offers a free way to enter, with the same odds as a paid entry, and runs under written official rules. On Zeffy, both live in the same Raffle & Sweepstakes campaign type, with Sweepstakes selected by default.
.webp)
