Is Your Nonprofit Fundraising a Sweepstakes, Raffle, or an Illegal Lottery?

Sweepstakes vs Raffle for Nonprofit

Nonprofit Raffle

Nonprofit Sweepstakes

  • An online entry form
  • A mail-in entry
  • An email entry
  • A text message or phone entry
  • Via social media platforms like Facebook, Instagram, or Twitter
  • In-person entry at stores, offices, or events

Is Your Nonprofit Fundraising an Illegal Lottery?

  1. A prize with monetary value
  2. Luck. The outcome of the campaign is not dependent on skill.
  3. “Consideration.” An entrance fee is required. This payment may be money or anything else that takes a significant amount of time away from the entrant or provides a benefit to the promotion’s sponsor.
  • Sweepstakes: Sweepstakes aren’t classified as lotteries since there is no purchase necessary to enter — only a prize and luck.
  • Contests: Although most contests provide a prize and consideration, they are not luck-based. True contests are trials of skill, which removes the element of chance from the equation.
  • Raffles: Raffles are a gray area and are seen as lotteries in certain states.

Conclusion

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Sweeppea

Sweeppea

Turn Participants Into Customers.