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Verdict: A sweepstakes and a raffle both award a prize by chance. The difference that matters is legal: a sweepstakes can run in every US state, while raffle rules change from state to state and can be hard to follow.
A sweepstakes is a prize drawing where winners are picked by chance and no donation is necessary to enter. Supporters can pay for entries to back your cause. But there is always a free way to enter with the same odds of winning.
That free path is also why a sweepstakes is not a lottery. A lottery mixes three things: a prize, chance, and a payment to play. Remove the required payment and you have a sweepstakes. A raffle keeps all three, which is why each state sets its own rules for who can run one and how.
On Zeffy, you can run a free online raffle or a free sweepstakes from the same campaign type, so choosing between them is a setting, not a new tool to learn.
For a small nonprofit: you don't need the legal theory. Remember one line: a sweepstakes can run in every state, a raffle depends on your state's rules.
Here is how the two compare on the points a nonprofit actually decides on.
| What you're comparing | Sweepstakes | Raffle |
|---|---|---|
| Where you can run it | Every US state | Only where your state's raffle rules allow it |
| How to enter | Pay for entries, or use the free entry form | Buy a ticket |
| Free entry | Always included, with the same odds as a paid entry | None: paying is the only way to play |
| Who can take part | Anyone who meets the official rules, paying or not | Only people who pay |
| Official rules | Zeffy writes them, free entry included | Follow your state's raffle rules |
| Typical setup on Zeffy | Raffle & Sweepstakes campaign, Sweepstakes selected by default | Same campaign, choose Standard Raffle where Zeffy offers it |
One thing stays the same on both sides. Every person who enters, free or paid, lands on their own record in the free donor CRM that fills itself. You don't build a separate entrant list or copy names out of a spreadsheet after the draw. Each entrant sits next to everything else they have given you, ready for a thank-you or your next appeal.
For a small nonprofit: the table comes down to the first row. A sweepstakes works in every state. A raffle works only where your state allows it.
Raffles are regulated state by state: who can run one, which permits it needs and, in some states, whether it can run online at all. A sweepstakes avoids that because it includes a free way to enter, which takes it out of the lottery category. That free entry is required by law, and on Zeffy it comes built in:
So what does the free entry change for you? Very little. Your sweepstakes runs like any prize drawing: supporters enter with a donation to back your cause and for a chance to win your prizes.
A raffle skips the free entry, but it comes with your state's raffle rules, and those are where most nonprofits get stuck.
For a small nonprofit: a sweepstakes lets you run your drawing legally wherever your supporters live. A raffle keeps a simpler, all-paid drawing where your state allows it. Neither is the "better" one.
Start with what your state lets you run. Then ask which setup gets you the most entries with the least admin.
Whichever you pick, keep this in mind: laws vary by state and each organization is responsible for its own compliance. If you're unsure, check your state's rules before you launch.
For a small nonprofit: if Zeffy offers only Sweepstakes in your state, the choice is made for you. If both are on the table, go with what your supporters expect. A raffle suits a crowd that likes buying tickets, and a sweepstakes suits a drawing you want shared far and wide.
Raffles and sweepstakes use the same campaign type on Zeffy: Raffle & Sweepstakes. On the "Pick your lottery type" step, Sweepstakes is selected by default with a "Recommended" label. You can switch to Standard Raffle where Zeffy offers it.
Here is the setup on Zeffy, step by step. For prizes, promotion and the drawing itself, see how to run a sweepstakes fundraiser.
Behind the scenes, Zeffy does the admin. Zeffy is the free all-in-one fundraising platform with a donor CRM built in. Every entry, free or paid, ends up on that person's record, next to their donations and event tickets. Zeffy sends a receipt for every transaction.
It is also free. A $10 entry means $10 reaches your account, with no platform fee, no per-entry fee and no card fee coming out of it. Zeffy is funded by an optional contribution supporters can add at checkout.
One limit to know: Zeffy doesn't currently accept sweepstakes with more than $5,000 in prizes in New York or Florida.
For a small nonprofit: the hard parts of a drawing (numbering entries, rules, free-entry forms and receipts) are handled for you. Spend your time on the prize and on getting the word out.
A sweepstakes and a raffle are two different ways to run a drawing, not a workaround and an upgrade. The real difference is where you can run them. A sweepstakes can run legally in every US state, because it includes a free way to enter, which comes built in on Zeffy. A raffle depends on your state's rules.
For a small nonprofit: check what Zeffy offers in your state, pick the setup that fits your supporters, and launch it in the same free campaign.
A contest picks winners on skill, like the best photo or essay. A giveaway is a free prize drawing, usually run by a business to promote itself. A sweepstakes picks winners by chance and can offer paid entries, but it always keeps a free way to enter with the same odds.
A lottery combines a prize, chance and a required payment to play. A sweepstakes removes the required payment by offering a free way to enter with the same odds. That free path is what separates the two.
Yes, that is what makes it a sweepstakes. On Zeffy, each person can claim one free entry per email per day through the form in the official rules. A free entry has the same odds as a paid one.
Zeffy offers sweepstakes to organizations in every US state and in the UK, but not in Canada, including states where it doesn't offer raffles. Laws vary by state and each organization is responsible for its own compliance.
No. On Zeffy, the word "raffle" can't be used in a sweepstakes title or description. Use "sweepstakes", "drawing" or "fundraising drawing" instead.
Yes. Zeffy sends a receipt for every transaction, and every entrant, free or paid, is added to your free donor CRM. Amounts paid for entries are not tax-deductible, since entrants get a chance to win in return.
No. No platform fee, no transaction fee, no credit card fee. Ever. Zeffy is funded by an optional contribution supporters can add at checkout, and your nonprofit keeps 100% of every entry.
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