How to run a raffle online is one of the most profitable and scalable strategies for nonprofits today. Running an online raffle can be one of the most profitable, scalable, and community-driven fundraising strategies available to nonprofits today. But not all online raffles are created equal — and not all raffle platforms support what real-world fundraising actually requires.
This comprehensive guide explains:
- How to legally run a raffle online
- The different types of raffles nonprofits use
- How to structure pricing for maximum revenue
- What to look for in online raffle software
- The hidden risks in “free” platforms
- How to run hybrid (in-person + online) raffles correctly
- How to scale for high-volume events
If you are searching for how to run a raffle online, best raffle software for nonprofits, or online raffle rules by state, this guide is designed to give you a complete, authoritative answer.
Nonprofits should always review local gaming regulations before launching a raffle. Guidance is available from the National Council of Nonprofits
Step 1: How to Run a Raffle Online Legally in Your State
Raffles are classified as charitable gaming in most U.S. states. Regulations vary significantly and may include:
- Nonprofit registration requirements
- Gaming licenses or permits
- Reporting obligations
- Restrictions on prize types
- Restrictions on online ticket sales
Before launching any raffle, review your state’s gaming regulations.
👉 See: Raffle Rules by State (internal authority resource)
Even if you have run raffles before, online sales introduce additional compliance considerations — including payment processor rules.
Step 2: Choosing the Right Type of Raffle Online
Many organizations assume all raffles are the same. They are not.
Modern nonprofits commonly run:
Traditional Online Raffle
A single prize or prize bundle where tickets are sold online and one winner is drawn.
50/50 Raffle
Half of the total ticket revenue goes to the winner; half supports the nonprofit.
Basket Raffle / Tricky Tray / Chinese Auction
Multiple prizes with separate ticket pools per basket.
Queen of Hearts Raffle
Progressive jackpot format with weekly draws.
Ball Drop Raffle
Numbered balls dropped from height (often at large outdoor events).
Many low-cost or “free” platforms only support the most basic traditional raffle format.
If your event includes baskets, progressive jackpots, or hybrid sales, your platform must be built specifically for those models.
👉 See: Best Raffle Software for Nonprofits
how to run a raffle online step by step
Step 3: How to Run a Raffle Online Using the Best Software
When evaluating raffle software, nonprofits should assess five core criteria:
1. Raffle Type Support
Can the system handle:
- Basket raffles?
- 50/50 raffles?
- Queen of Hearts?
- Ball drops?
- Hybrid in-person + online sales?
2. Payment Flexibility
Does the platform allow:
- Multiple credit card processors?
- Acceptance of cash and checks?
- Compliance with restricted prize categories?
Many platforms are locked exclusively into Stripe, which prohibits certain prize categories such as firearms, alcohol, and tobacco-related items. Running such raffles without compliant processing can create legal exposure.
3. Pricing Model Transparency
Some platforms advertise “free” software funded by donor tips. In these systems:
- Donors are prompted for 15–30% tips
- Opt-out options may be unclear
- Checkout friction increases
- Conversion rates may decline
Alternative pricing models include:
- Fixed pricing
- Per-ticket pricing
- Enterprise custom pricing
Understanding how pricing affects donor behavior is critical.
👉 See: Free Raffle Software: What It Really Costs
4. Scalability
Large events generate traffic spikes. Platforms that place all raffles on shared low-resource servers may experience:
- Slow checkout
- Failed transactions
- Lost revenue
Enterprise-grade raffle infrastructure isolates high-volume events to ensure performance stability.
5. Reporting & Audit Readiness
Your software should generate:
- Exportable ticket logs
- Financial summaries
- Drawing documentation
- Clear audit trails
Compliance documentation protects your organization.
Step 4: How to Run a Raffle Online for Maximum Revenue
Create Tiered Ticket Pricing
Instead of selling only single tickets, offer bundles such as:
- 1 ticket for $10
- 6 tickets for $50
- 15 tickets for $100
Bundling increases average order value.
Use Urgency and Milestones
Display:
- Revenue progress
- Countdown timers
- Limited ticket thresholds
Visible momentum increases participation.
Optimize Checkout Simplicity
The fewer clicks and decisions required, the higher the completion rate.
Excessive tip prompts, hidden fees, or confusing opt-outs reduce conversions.
Step 5: Hybrid Fundraising – How to Run a Raffle Online Offline + Online
Many nonprofit events are hybrid — meaning:
- Some donors buy tickets online
- Others pay with cash or check in person
A proper raffle system must allow administrators to:
- Manually enter offline sales
- Assign ticket numbers
- Sync online and offline pools
Platforms funded by optional donor tips often cannot process offline transactions effectively because their revenue model depends on digital tip prompts.
Hybrid compatibility is not optional for many schools, churches, and community organizations.
Step 6: Ensure Drawing Transparency
Your raffle drawing should be:
- Randomized
- Documented
- Verifiable
- Publicly defensible
Transparent draw logs and exportable records protect your nonprofit from disputes.
Step 7: Post-Raffle Reporting and Donor Stewardship
After the drawing:
- Announce winners publicly (if permitted)
- Send thank-you communications
- Share fundraising results
- Archive compliance documentation
Raffles are not just transactions — they are community engagement opportunities.
Common Questions About Running an Online Raffle
Can you legally run a raffle online?
Yes, but only if permitted by your state’s charitable gaming laws and if you meet registration requirements.
What is the best raffle software for nonprofits?
The best raffle software supports multiple raffle types, hybrid sales, transparent pricing, scalable infrastructure, and compliant payment processing.
Are free raffle platforms truly free?
Many are funded through donor tips rather than nonprofit fees. While there may be no upfront cost, fundraising performance can be affected by checkout friction and limited feature sets.
Can you run a basket raffle online?
Yes — but only with software specifically designed for multi-prize ticket pools.
What Defines a Modern Online Raffle Platform
A true online raffle solution should:
- Support all major raffle formats
- Accept online and offline payments
- Allow flexible payment processing
- Scale during high-traffic events
- Provide full compliance reporting
- Offer transparent pricing structures
Nonprofits should evaluate platforms based on revenue outcomes — not just advertised cost.
Explore the full platform capabilities on our online raffle software features page.
Final Thoughts: Running an Online Raffle Successfully
Running a successful online raffle requires more than selling digital tickets.
It requires:
- Legal awareness
- Technical reliability
- Behavioral understanding of donors
- Transparent pricing
- Infrastructure built specifically for nonprofit fundraising
When structured correctly, online raffles can become one of the most reliable annual fundraising channels available.
For deeper guidance, explore:
- Best Raffle Software for Nonprofits
- Raffle Rules by State
- Free Raffle Software: What It Really Costs
- Hybrid Fundraising Guide
A properly built raffle system doesn’t just sell tickets — it maximizes mission impact.