Raffle Fundraisers
What you need to know
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What is a raffle?
• The following three factors determine
whether an activity is a raffle.
– A ticket is purchased (financial
consideration)
– Winners are selected randomly (all
participants have an equal chance of
winning)
– A prize is awarded
• If the activity is a raffle – there are rules
that must be followed.
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What is a raffle?
Note:
• No other forms of gambling.
• No casino style games or bingo.
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Why do we need raffle training?
• As we have increased our raffle activity in
Washington, compliance requirements
and rules have increased as well.
– Agency and state laws: which govern
licensing, conducting, prizes, and reporting
– Federal laws: which govern taxes
– American Cancer Society: practices to
ensure stewardship and protection of our
reputation
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And we must follow them all!
Our reputation is our most important asset!
• Illegal activity or non-compliance impacts
our ability to raise money in the future.
• Illegal activity or non-compliance increases
expenses (significant fines, staff time, legal,
audit, etc.).
• Illegal activity involving fraud reduces the
money raised by the American Cancer
Society and our millions of supporters.
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What are the rules?
Conducting the raffle:
• You must conduct your raffle as a
representative of the American Cancer
Society.
– Why? Only licensed, exempt organizations
can be licensed to conduct raffles.
• You must work very closely with your
staff partner to ensure compliance with
all rules.
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What are the rules?
Conducting the raffle:
• maintain records and provide them to
your staff partner for reporting raffle
income and records to the state and
winner taxes to IRS.
• Local law enforcement must be notified
of gambling activity before the event.
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What are the rules?
Advertising the raffle:
• No online promotions (or sales) are
allowed.
• Radio and television promotion only
within local area (not across state lines).
What are the rules?
Participants:
• No one under 18 years old can purchase
tickets; they can sell for a non-profit if
activity is supervised by an adult.
• ACS staff and their immediate family and
volunteers involved (in organizing) in the
raffle activity should not participate – it is
a perception issue.
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What are the rules?
At the drawing:
• The following items are required where
raffle winners are selected:
– House rules* including:
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Date, time, location of drawing
Cost of ticket
Prizes, restrictions, etc.
Applicable taxes statement
Fair market value of prizes
Donor/sponsor information
*we
provide a template like this for you to use!
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What are the rules?
At the drawing:
– Raffle license*
– Problem gambling sign at all entrances*
*We provide these in the resource packet – all you have to do is post!
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What are the rules?
At the event:
• Bring:
– Prizes, receptacle, sold ticket stubs, unsold
tickets (tracked on raffle ticket log sheets*)
– Prize list with description and value of each
prize
– All raffle records (expenses, donor
acknowledgements*, reporting forms*)
– A copy of rules for possible inspection*
(*You have all these forms with an asterisk in your resource packet!)
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What are the rules?
Tickets and ticket sales:
• You can use theater style tickets and
provide ticket information to each
purchaser or pre-printed tickets (using
our ticket template provided in raffle
resource packet).
• Ticket (or handouts provided with
theater ticket) must have:
– Date, time, and location of the drawing
– American Cancer Society
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What are the rules?
Tickets and ticket sales:
• Ticket (or handout) requirements (cont.)
– Price of the chance
– FMV of each prize to be awarded
– A statement about the taxes being the
responsibility of the winner
• Tickets should not contain the words
“suggested donation”.
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What are the rules?
Tickets and ticket sales:
• Tickets must be sequentially numbered.
• Stub and ticket should have matching
sequence number.
• Stub should have purchaser’s name,
complete address, phone number and
other information to notify winner.
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What are the rules?
Tickets and ticket sales:
• Tickets must be priced consistently. If
discounts are available, the plan must
not change.
• There are no free tickets.
• Tickets must be priced at $100 or less.
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What are the rules?
Tickets and ticket sales:
• No mailing of tickets or payments or
online sales; only face to face sales.
• We cannot compensate others to sell
tickets on our behalf.
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What are the rules?
Tickets and ticket sales:
• Sellers must return all stubs and unsold
tickets.
• We must account for all raffle tickets
using a raffle ticket distribution log.
(This form is included in your raffle
resource packet)
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What are the rules?
Selecting the winner(s):
• Winners should be determined as
advertised (where/when/how).
• Your raffle winner should be selected by
random drawing of a winner from a
receptacle.
• Winners do not need to be present to
win.
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What are the rules?
Selecting the winner(s):
• Consider in advance how you will draw
names for greatest perception of
“fairness”.
• Draw two “back-up” winners.
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What are the rules?
Prizes:
• Must be 100% donated.
• Must be fully owned at the time of the
raffle.
• Can be cash, merchandise, or gift
certificates for merchandise or services.
• Over $599 require additional reporting,
appraisals, and may require taxes being
collected.
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What are the rules?
Prizes:
• All prizes must be aligned with the
American Cancer Society’s mission.
– The following are not allowed:
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Tobacco products
Tanning services or products
Animals
Firearms or other weapons
Alcohol (we don’t qualify for a special permit)
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What are the rules?
Prizes:
• If there are any limitations on a prize,
make sure it is clearly communicated.
(e.g., are there blackout or expiration
dates; is airfare included, etc.)
• We must ensure the prizes are awarded
• Prizes are not transferable.
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Contact your staff partner for more
information.
La Marco Mitchell
la.marco.mitchell@cancer.org
253.207.5142
Thank you for your time!
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©2013 American Cancer Society, Inc. No.0059.55
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Raffle Fundraisers
What STAFF need to know
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