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.
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 California defines a nonprofit raffle as:
…a scheme for the distribution of prizes by chance among persons who have paid money for paper tickets that provide the opportunity to win these prizes.1
Who can host a raffle in California?
Any private, nonprofit organization that has been qualified to conduct business in California for at least one year prior to conducting a raffle and is exempt from taxation. That means that your nonprofit does not need 501(c)(3) status to host a raffle in California.
(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.1
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 it’s employees. No outside vendors or third parties can be used.2
- Support charitable organizations in California.2
And, if you meet the nonprofit eligibility requirement, you must also:
- Be in good standing with the Attorney General’s Office.
- Be in good standing with the raffle registration registry.
- The draw must take place in California under the supervision of an adult (18+).1
How does a nonprofit register for a raffle in California?
A raffle registration year in California starts on January 1 and ends on December 31. You can register any time after October 1 for the following year. To register, just fill out the CT-NRP-1 form and pay the $30 registration fee.
You need to register for a nonprofit raffle license at least 60 days BEFORE the scheduled date of your raffle to make sure the registry staff have enough time to process your form.3
We've even created a raffle registration checklist to guide you through the process of registering.
Can you sell raffle tickets online in California using Zeffy’s ticketing forms?
Unfortunately, for now, you cannot operate or conduct an online raffle in California. We know, we think it’s a bit of an outdated rule too. But, what does “operate or conduct a raffle over the internet” mean? Well, you can’t use Zeffy’s event and ticketing platform to sell or redeem your raffle tickets. California law also states that “an eligible organization shall not be deemed to operate or conduct a raffle over the internet, or sell raffle tickets over the Internet”.1
So, can a nonprofit sell raffle tickets using Zeffy? Not yet. But, when it comes to hosting a nonprofit raffle in California, you can still use Zeffy for:
- Track your raffle sales by adding offline ticket purchases to your campaign.
- 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 California 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.
California laws on raffle tickets.
There aren’t too many must haves on raffle tickets in California.
Each ticket you sell has to have a detachable coupon or stub, and both the ticket and its coupon or stub need to be marked with a unique and matching number.1
So, you can purchase pre-made tickets or get inspired by our sample ticket:
Does it cost money to register for a lottery?
There is a raffle registration fee $30 associated with the CT-NRP-1 form.
After your nonprofit raffle…
Your work doesn’t end when the last ticket stub is drawn. In California, if you registered to host a raffle, you must complete and submit the Nonprofit Raffle Report: CT-NRP-2 by February 1 for the previous year. You have to complete the form regardless of the number of raffles you held during the registration period—even if you ended up not holding any.
We know, we know. Needless paperwork is a bit annoying. But, that’s how it is.
Here’s a recap of all the links and documents mentioned in this article:
The raffle registration checklist.
Nonprofit raffle registration form CT-NRP-1.
Nonprofit raffle report. (If you are registered, it must be completed once a year whether you held a raffle or not.)
California forms for nonprofit raffle registration and renewal.
If you need them: charitable lottery licence for other US states.
Nonprofit raffle laws in Florida.
Nonprofit raffle laws in New York.
Nonprofit raffle laws in Texas.
