Why Online Raffles Are Your Nonprofit's Best Fundraising Tool in 2025

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Last updated on
June 16, 2025

Why Online Raffles Are Your Nonprofit's Best Fundraising Tool in 2025

Four people discuss online raffle designs displayed on a computer screen in a bright office setting

Online raffles have transformed nonprofit fundraising, and 62% of organizations that moved to virtual fundraising have seen amazing results. These nonprofits are 10% more likely to reach or surpass their initial fundraising targets than those using traditional methods. The data tells a clear story - 47% of donors in North America choose raffles and sweepstakes, which makes them twice as effective as regular auction events at 24%.

The pandemic changed everything and nonprofits had to find new ways to connect with donors online. Take the Queen of Hearts raffle - its growing prize pool shows how online charity raffles can really work. The Wild Sheep Foundation's record-breaking raffle proves why picking the right online platform matters so much. Your organization can cut costs and reach more people with less administrative work by running raffles the right way. This piece will explain why online raffles should be your nonprofit's main fundraising tool in 2025.

What Makes Online Raffles Ideal for Nonprofits

"Online raffles turn traditional raffles into accessible digital experiences. Participants can conveniently purchase tickets online, with winners selected using a randomized draw and announced through digital channels."

— Zeffy, Free fundraising platform for nonprofits

The numbers paint a clear picture - online charitable gaming fundraisers have grown significantly. Online giving jumped by over 20% in 2020 alone. Virtual raffles offer nonprofits a chance to secure steady funding that they simply can't overlook.

Participation through gamification

Success in online raffles comes from their game-like approach to giving. Studies show that adding game elements to social media strategies can boost participation by 100% to 150%. This spike makes sense since about half of all Americans play lotteries.

What makes games so powerful for nonprofit fundraising?

  • Natural psychological appeal - People naturally seek rewards. This creates a sense of community and excitement that ends up bringing in more funds
  • Trophy-based motivation - Awards, badges, and levels tap into people's competitive spirit. Supporters get excited when they hit milestones
  • Social momentum - Progress bars and leaderboards create urgency as campaigns near their goals. This motivates more people to join in

"The element of fun combined with substantial amounts that can be won by buying a mere USD 10.00 or USD 20.00 ticket is an excellent way to attract lapsed or inactive donors," notes one fundraising expert. This excitement helps explain why online raffles perform better than traditional fundraising methods.

Adaptable fundraising model

Online raffles give nonprofits an amazing chance to scale their fundraising. Physical events face space limitations, but digital raffles can reach anyone with internet access.

The math behind social reach is compelling: A Facebook user's average friend count is 338. This means a nonprofit needs just 30 supporters to reach about 10,000 new people. Small nonprofits with fundraising goals under $1 million benefited most from this digital boom. Virtual donations made up 18.9% of their yearly revenue.

Scaling goes beyond just reach. Online raffles become self-sustaining after two or three rounds of ticket sales. Unlike traditional methods, these digital campaigns run week after week or month after month. Organizations can maintain steady revenue without starting from scratch each time.

Digital tools handle ticketing, marketing, and promotions online. This makes everything quicker than in-person fundraisers. Automated processes let organizations track buyer data and review results to learn about future campaigns.

Easy to start

Online raffles need very little to get started. Nonprofits spend much less upfront compared to traditional fundraising events. They don't need venues, catering, decorations, or physical prizes.

These raffles remove common fundraising hurdles:

  1. No prize procurement needed - 50/50 raffles let participants fund the prize pool through ticket purchases
  2. Less time needed - Virtual raffles need fewer staff hours. Organizations can launch them quickly
  3. Quick setup - Modern platforms handle everything from sales to tracking

The financial benefits stand out clearly. Virtual raffles cut out physical event costs, which means better returns for organizations. In 50/50 raffles, ticket sales keep growing the jackpot. Prizes become more attractive the longer events run.

Online raffles work well with other fundraising efforts. Organizations can run hybrid draws that take both online and in-person entries. They can add raffles to virtual galas and other events. This flexibility makes online raffles a valuable tool in any nonprofit's fundraising arsenal.

Organizations collect donor information during raffles to build valuable contact lists. This creates long-term relationship opportunities beyond immediate fundraising, making online raffles a smart investment in growth.

Types of Online Raffles You Can Run

Moving past traditional fundraising methods, nonprofits have several engaging online raffle options to choose from in 2025. These formats work differently based on your organization's goals, donor base, and fundraising targets. Here are the most successful options:

50/50 draws

A 50/50 raffle works because it's simple. People buy tickets, and the total pot splits evenly—50% goes to your nonprofit and 50% to the winner. This simple approach needs minimal setup but delivers great results.

The self-funding nature makes 50/50 draws work so well. Your organization doesn't need to secure prizes upfront, which means almost no initial costs. The jackpot grows bigger and naturally draws more people to join as the prize pool increases.

You only need these steps to run an online 50/50 raffle:

  • Pick a secure platform that handles ticket sales and payments
  • Design your raffle page with eye-catching visuals
  • Build excitement by showcasing the growing prize pool
  • Draw the winner transparently, preferably on live video

Many winners donate some of their winnings back to your cause, which boosts your fundraising total.

Sweepstakes

Sweepstakes give nonprofits key benefits, even though they seem like raffles. The main difference is their legal classification since they must include a free entry option. This means sweepstakes can run in places where raffles face restrictions.

People enter sweepstakes by submitting their information, and they can choose to donate as well. Free entry must be available, but most supporters gladly give to help good causes.

Sweepstakes help nonprofits reach new donors beyond their local areas. Amazing prizes encourage social sharing and create excitement around your organization. You'll also build a powerful donor database from all entrants' contact information—perfect for future campaigns.

Queen of Hearts

The Queen of Hearts raffle mixes progressive jackpots with card game excitement. Players see 54 cards (including jokers) face down on a board. Each week, one ticket gets drawn, and that person picks a card—hoping to find the Queen of Hearts.

Finding any other card ends that week's drawing, but the game goes on. The shown card stays visible, which makes future odds better. The jackpot grows each week, building more excitement.

Winners get smaller prizes for finding face cards or number cards, but the big jackpot waits for whoever finds the Queen of Hearts. People keep coming back week after week to buy new tickets because of this structure, which raises more funds.

Catch the Ace

Catch the Ace (or Chase the Ace) creates excitement like Queen of Hearts but focuses on finding the Ace of Spades. This format combines a 50/50 raffle with growing jackpots.

The money splits this way:

  • Your nonprofit gets 50% of weekly ticket sales
  • 30% builds the progressive jackpot
  • The weekly draw winner receives 20%

Each passing week builds more excitement as more cards disappear, making it easier to find the Ace. One card gets revealed and removed at every drawing—until someone finally "catches" the Ace of Spades.

These campaigns can raise incredible amounts. Some Catch the Ace jackpots have hit millions while generating huge revenue for nonprofits. A South Dakota foundation made headlines when their jackpot reached $1.87 million and raised over $900,000—this is a big deal as it means that their original $200,000 goal.

Catch the Ace programs usually pay for themselves after just four or five weeks, which makes them great long-term fundraising tools.

How to Do an Online Raffle for Charity

Laptop and smartphone displaying SupporterHub's digital raffle and charity CRM software interfaces for managing and entering raffles

Starting your first online raffle might feel scary, but the process is easier than you think. Here's a simple breakdown of steps to help your nonprofit raise more funds while staying within the rules.

Step-by-step setup process

Check your local legal requirements first. Only registered nonprofits with 501(c)3 status can run raffles in many places, and online raffle laws change by a lot between states and provinces. Next, you'll need to decide between a free-entry draw or a paid lottery.

Free-entry raffles don't need gambling authority registration, which makes them perfect for beginners. You can still raise money through voluntary donations - nine in ten participants typically contribute anyway.

Paid raffles require proper licensing. A small society lottery license costs about $40 and lets you run raffles up to $250,000 yearly, with a $20 renewal fee after year one. After sorting out the legal stuff:

  1. Define your fundraising goals and timeline
  2. Secure prizes (or opt for a 50/50 model)
  3. Create your online raffle website
  4. Promote across multiple channels
  5. Draw winners transparently
  6. Thank participants and maintain their information to reach out later

Choosing a raffle platform

Your platform choice shapes your entire campaign. The platform you pick affects everything from ticket sales to your donor's experience.

The best online raffle site for nonprofits should have these features:

  • Accessible interface - Simple navigation for staff and participants
  • Secure payment processing - Options like credit cards, Apple Pay, and Google Pay
  • Automated ticket generation - Digital tickets sent by email or text
  • Immediate reporting - Tracking sales and donor information
  • Customization options - Ways to brand your raffle page

Some platforms shine bright in 2025. DoJiggy gives you complete tools with customizable templates and multiple payment choices. RallyUp lets you create custom raffle pages with immediate tracking and automated winner selection. Zeffy stands out because it's 100% free for nonprofits - they even cover transaction fees.

Setting up payment and ticketing

Your payment system should accept various payment methods once you've picked your platform. Modern platforms handle credit/debit cards, digital wallets like Apple Pay and Google Pay, and sometimes offline payments.

Tiered ticket pricing helps boost participation - to cite an instance, 10 entries for $10 or 50 entries for $25. This strategy usually brings in more money than single-ticket options.

Your raffle tickets must include:

  • Unique ticket number
  • Organization's name (matching your license exactly)
  • Drawing date, time, and location
  • Prize descriptions
  • Ticket prices
  • Contact information
  • Note that winners don't need to be present

Digital tickets with QR codes are generated and sent automatically by most platforms after purchase. These systems track sales and keep donor information handy for future marketing.

Social media, email marketing, and text messages help boost sales - text messages have a 98% open rate. A ticketing widget on your website makes purchases easier.

You'll need a plan to pick winners before drawing day. Many platforms offer random selection tools that keep things fair and open. You could also stream the drawing live on YouTube to create excitement and get last-minute sales.

Choosing the Best Online Raffle Site for Nonprofits

"63% of donors prefer to give online with a credit or debit card, followed by direct mail (16%), PayPal (10%), wire transfer (5%), cash (4%), digital wallet (1%), and text-to-give (1%)."

— Double the Donation, Leading provider of matching gift and volunteer grant solutions for nonprofits

Your choice of online raffle platform can make the difference between average results and a soaring win. The platform you pick will handle ticket sales and donor data management—a vital decision for your nonprofit's success.

Key features to look for

Online raffle platforms offer several valuable features for nonprofits. Secure payment processing should top your list to protect your organization and participants through SSL encryption and trusted payment gateways. Your platform needs multiple payment options like credit cards, Apple Pay, and Google Pay to get more participants.

A smooth user experience drives ticket sales. You need a simple, accessible buying process. One platform provider puts it well: "If buying your virtual raffle tickets is overly complicated or clunky, you won't sell as many as possible".

Other key features include:

  • Customizable ticket options with various pricing packages
  • Social media integration for broader reach
  • Mobile-responsive design for on-the-go purchases
  • Live reporting and analytics
  • Automated winner selection tools
  • Options to embed ticket forms on your website

Your platform's customization options help match your organization's branding, which builds trust among supporters. Different ticket packages often boost overall sales, so look for platforms that let you create multiple entry levels.

Top platforms in 2025

Several platforms lead the nonprofit online raffle space in 2025. DoJiggy provides detailed tools with customizable templates and handles multiple payment types including offline sales. You can sell tickets for specific prizes or general entry, giving you flexibility for different raffle formats.

RallyUp excels with its improved 50/50 raffle features and user-focused dashboard that shows performance instantly. The system works with both online and paper tickets, plus offers merchandise incentives and scheduled draws.

Zeffy stands out as a budget-friendly option—it's completely free—with no platform fees. They give you automatically generated, customizable e-tickets with QR codes that work everywhere.

GalaBid comes packed with over 100 features and great support through videos and live chat. You can quickly set up pre-event ticket sales and issue digital tickets right away.

Eventgroove delivers strong analytics and flexible pricing plans that grow with your raffle. Users praise their customer support team's quick response times.

Security and compliance considerations

Security should be your priority when picking a raffle platform. Poor cybersecurity can hurt raffle integrity and public trust. Pick platforms that use proper authentication, strong encryption, and restricted IT infrastructure access.

The winner selection process needs a certified random ticket selection system. Most platforms use automated random number generators to avoid manipulation or human error. Some systems offer transparent livestreamed drawings to build extra trust.

Local gambling laws differ everywhere. Good platforms guide you through legal requirements and help you get necessary permits or licenses. Learn your region's raffle and lottery laws before starting.

Clear rules help build a fair and transparent raffle. Well-written guidelines build participant trust, prevent problems, and show your steadfast dedication to professional fundraising.

Marketing Your Raffle for Maximum Reach

Your nonprofit's raffle platform needs the right marketing push to reach potential supporters. Good marketing can turn a simple fundraiser into a soaring win that goes beyond your goals.

Using social media and email

Social media reach shows some interesting numbers. Research shows 29% of people see social media as their main inspiration to give. Facebook stands at the top with 56% of users, while Instagram follows at 20% and Twitter at 13%.

Social platforms work best when you:

  • Share stories that show how your charitable work helps communities
  • Mix up your content with videos and photos to get more people involved
  • Keep your posts regular - aim for one to three posts each day

Email marketing proves its worth among other digital efforts by bringing in $40 for every dollar spent. The numbers back this up as 33% of donors say emails inspire them most to give.

Your emails will work better if you:

  • Split your donor list based on who they are and how they give
  • Share stories that touch people's hearts
  • Make sure everything looks good on phones since that's where most people read emails

Creating urgency with countdowns

People tend to value things more when they might miss out. Without a clear reason to act now, they might put it off or forget about your raffle completely.

Countdown timers show people exactly how much time they have left. One platform's conversions jumped 300% after adding countdown timers to their campaigns. The key is to stick to your word - let deals expire when the timer hits zero or you risk losing trust.

Your fundraising page could feature timed prize drops with countdown timers. New prizes become available each time the clock runs out and entries start fresh. This strategy keeps supporters coming back to join in multiple times.

Leveraging QR codes and print materials

Physical marketing materials with digital connections pack quite a punch. QR code scanning has grown four times larger from 2021 to 2023. Now, 40% of raffle programs use these codes to sell tickets face-to-face.

QR codes connect the real and digital worlds seamlessly. Put them on posters, signs, shirts, or business cards for quick ticket sales. Event volunteers can help buyers scan and purchase without needing payment machines.

A detailed marketing plan should mix digital and print strategies. Place boards with QR codes in busy areas throughout your campaign, and share posters with community partners. These physical materials, with eye-catching designs and clear QR codes, often become your best tools to raise funds.

Staying Compliant with Raffle Laws

Legal requirements are a crucial first step for nonprofits planning online raffles. Fundraising and gambling laws create a complex web of rules that needs careful attention.

Understanding local and federal laws

Rules for raffles look different depending on where you are. Most states see raffles as gambling, which puts them under state-level watch. The legal map shows big differences - Texas has minimal rules while Alabama bans raffles completely.

State laws typically control:

  • Which organizations can legally conduct raffles
  • How many raffles an organization can hold annually
  • Requirements for maintaining separate bank accounts
  • Limitations on prize values and types
  • How raffle proceeds can be used

Federal rules add more layers to think about. The IRS keeps tabs on games of chance and any taxable income winners get. Your nonprofit might need to report raffle money as unrelated business income, which could make this revenue taxable.

What licenses you need

You'll need proper licenses in most places before running a raffle. Your organization should:

  1. Check eligibility requirements (usually limited to registered nonprofits with 501(c)3 status)
  2. Apply for needed permits or licenses (usually 30-90 days before your event)
  3. Register with state authorities like the Attorney General's office

Small-scale raffles often get special treatment. Prizes valued under $2,500 might not need registration in some places. Research your state's specific thresholds that trigger licensing requirements.

Avoiding illegal practices

Watch out for these common legal traps:

  • Prize reporting requirements: The IRS usually wants to know about prizes worth more than $600, which affects winners' taxes
  • 50/50 raffles: Several states ban these unless organizations meet specific rules
  • Record-keeping obligations: Most states want you to keep detailed records of ticket sales, winners, and finances for at least three years
  • Alternative entry methods: Many places require free entry options along with paid ones to avoid being labeled an illegal lottery

Breaking raffle laws can lead to criminal charges, and cases might end up with local district attorneys. If you're unsure, talk to a legal expert who knows nonprofit or gaming laws to make sure you follow all the rules.

Tips to Run a Successful Raffle Campaign

A successful online raffle needs attention to detail beyond just picking a platform and announcing your campaign. Small details can make all the difference in your fundraising outcomes.

Pick the right prize

Your audience's preferences should guide your prize selection. You need to ask: Who will donate? What ages do they represent? How do they spend their free time?

The right prizes that appeal to your supporters will boost participation, even with limited resources. These proven options work well for community-based raffles:

  • Exclusive experiences (dinner parties, private tours)
  • Themed gift baskets based on interests
  • Electronics or trending items
  • Family-friendly packages that match your donor's needs

Prize value should arrange with ticket pricing—higher-value items justify steeper prices, while smaller prizes need lower price points. Different prizes attract various supporter groups, so offering variety helps increase overall appeal.

Bundle ticket options

Ticket bundles give buyers an irresistible deal that leads to bigger purchases. Buyers get more chances to win and your nonprofit raises extra funds—everyone wins.

Move beyond single tickets by using tiered pricing—one ticket at $10, five tickets at $40. Sales substantially increase as people see better value and improved odds of winning.

Early bird promotions with discounted first-batch tickets work well too. This creates a sense of urgency that pushes supporters to buy right away instead of waiting.

Keep participants updated

Trust builds through transparency during your raffle campaign. Let people know your fundraising goals and how you'll use the money.

Regular updates and countdown messages help maintain excitement. High-quality photos and detailed descriptions showcase both prizes and your mission effectively.

Livestreaming the drawing adds excitement and builds trust with your audience. Facebook Live or YouTube makes this simple and lets remote supporters join the event.

A personal thank-you message to each participant is a vital step that deepens their commitment to future fundraising.

Tracking Results and Improving Over Time

Online fundraising success goes beyond just starting a raffle. Each campaign teaches lessons to improve the next one. Accurate data tracking is the foundation of fundraising growth for nonprofits in 2025.

Using up-to-the-minute reporting tools

The right analytical tools help gather accurate information throughout your campaign. Several powerful options are available now:

  • Google Analytics: Monitors website traffic, showing visitor sources, page views, and conversion tracking for completed ticket purchases
  • Meta Pixel: Tracks Facebook/Instagram ad performance, measuring views, click-throughs, and ticket purchases
  • Email analytics: Platforms like Mailchimp give data on open rates, click-throughs, and conversions from email content
  • UTM parameters: These URL tags help link traffic to specific sources and campaigns, showing exactly what works

Quality raffle platforms come with built-in analytics dashboards that give instant insights into ticket sales, participant data, and revenue. This immediate reporting lets you track your online raffle's success and make analytical decisions during your campaign.

Analyzing donor behavior

Learning about donor priorities reveals valuable insights for future fundraising. Tracking metrics like Length-to-Donation (LTtD) helps spot friction points in your communication. A shorter LTtD shows your message connects well.

Creating donor "squads" based on demographics, history, and interests groups people with similar priorities. This enables individual-specific messaging. Note that personalized emails get 29% higher click-through rates and 41% more unique clicks than generic ones.

Patterns in donor behavior help predict when supporters want to participate. You might find certain donors like specific causes or giving schedules. This knowledge helps tailor future raffles to their needs.

Planning your next raffle

A "measure and improve" mindset should guide your fundraising efforts. Regular review of key performance indicators shows how your strategies work over time. This feedback loop positions your nonprofit for lasting success.

Looking at different campaigns side by side helps identify donor profiles and the tactics that bring the best results. Tracking metrics like donor acquisition cost shows where to invest resources and what needs adjustment.

Data isn't just about past performance. It gives the momentum to refine strategies, identify effective approaches, and remove what doesn't work. Every campaign becomes a learning experience. Your nonprofit's raffles become more effective and profitable with each new round.

Conclusion

Online raffles have proven themselves without doubt as powerful fundraising tools for nonprofits heading into 2025. The statistics speak volumes - 62% of organizations exceed their fundraising goals, and small nonprofits can reach thousands of potential donors. These digital fundraising methods blend the excitement of gamification with unprecedented reach to create fundraising chances that traditional methods could never achieve.

Online raffles stand out because they break down geographical barriers. Supporters from anywhere can join with just a few clicks. Different formats like 50/50 draws, Queen of Hearts, and Catch the Ace give you options that match your organization's needs and donor priorities.

Modern platforms have made the process much simpler, though your first online raffle might seem overwhelming. You'll need to handle legal requirements carefully, but the rewards far outweigh these first challenges. Most nonprofits see their raffles become self-sustaining after a few rounds and create reliable revenue streams without constant changes.

Your success depends on thoughtful implementation. Choose appropriate prizes, create compelling ticket bundles, keep regular communication with participants, and track results rigorously. Each raffle becomes a fundraising chance and teaches valuable lessons to improve your approach.

The digital world gives you unprecedented chances to connect with donors while reducing administrative work. Online raffles are more than just fundraising - they build communities through shared excitement and anticipation. Your organization can use this powerful mix of technology and psychology to fund your mission better than ever.

FAQs

Q1. What makes online raffles an effective fundraising tool for nonprofits?

Online raffles combine the excitement of gamification with wide reach, allowing nonprofits to engage supporters beyond geographical boundaries. They're scalable, cost-effective, and often become self-sustaining after just a few rounds, creating reliable revenue streams without constant reinvention.

Q2. How do I choose the right online raffle platform for my nonprofit?

Look for platforms with secure payment processing, user-friendly interfaces, customizable options, and real-time reporting. Consider features like multiple payment options, social media integration, and automated winner selection. Top platforms in 2025 include DoJiggy, RallyUp, and Zeffy, each offering unique benefits for different nonprofit needs.

Q3. What types of online raffles can nonprofits run?

Nonprofits can choose from several engaging formats, including 50/50 draws, sweepstakes, Queen of Hearts, and Catch the Ace. Each type offers unique advantages depending on your organization's goals, donor base, and fundraising targets. 50/50 draws are particularly popular due to their simplicity and self-funding nature.

Q4. How can I market my online raffle effectively?

Utilize a mix of social media, email marketing, and physical materials with QR codes. Create urgency with countdown timers and timed prize drops. Share compelling stories about your cause, use varied visual content, and maintain consistent communication. Remember to optimize for mobile users and leverage the power of personalized messaging.

Q5. What legal considerations should I keep in mind when running an online raffle?

Raffle regulations vary by jurisdiction, so research your local and federal laws carefully. Most states require nonprofits to obtain proper licensing before conducting a raffle. Be aware of prize reporting requirements, record-keeping obligations, and potential tax implications. When in doubt, consult with a legal advisor specializing in nonprofit or gaming laws to ensure full compliance.

Expand Your Fundraising With An Online Raffle

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