What it is
A raffle is a drawing in which people buy tickets for a chance to win a prize. Because it involves payment, chance and a prize, many states treat it as a form of gambling, even when the money goes to a good cause like a school.
Each state sets its own rules. Some allow raffles only for certain kinds of nonprofit organizations, some require a license or registration, and some limit how often you can hold one or how prizes may be offered. Cities and counties can add rules of their own.
Schools face an extra layer. Even where state law allows a raffle, your school or district may have its own fundraising policy that limits, requires approval for, or prohibits raffles, especially when students are involved. These policies vary by district and change over time.
How it’s traditionally been approached
Many schools have traditionally run raffles through a parent-teacher group or booster club rather than the school itself. Families often choose this route because a separate nonprofit group may be treated differently under state charitable gaming rules than a public school.
Common approaches include 50/50 drawings at events, basket raffles at festivals, and ticket sales tied to a school auction. Some groups skip the ticket-for-chance model and use alternatives such as free-entry drawings or donation-based prize giveaways, which are regulated differently.
Organizers have usually started by checking with the principal or district office, then looking at their state's gaming or charitable gaming agency and any local requirements. Rules on permits, record keeping, age limits and who can sell tickets are often where groups need the most care.
How the right fundraising expert may help
The right school fundraising expert may help you sort through the questions that matter before you sell a single ticket. They may explain how raffles are generally treated, point you toward the right state and local offices, and help you think through whether a raffle fits your school's policies and community.
A first conversation is often a planning discussion. The expert may ask about your school type, who would run the event, how tickets would be sold, and what prizes you have in mind. They may also talk through alternatives if a raffle looks too complicated for your situation.
Good questions to ask include: Have you worked with schools or parent groups in my state? How do you stay current on local rules? What should I confirm with the district and with a legal or tax professional? Can you help me compare a raffle with other fundraising ideas? A provider is not a lawyer, so they may suggest you consult one.
The bigger picture
Worrying about whether a fundraiser is allowed can take the joy out of a community effort. Volunteers often carry real stress about doing the right thing, protecting the school's reputation, and handling other people's money responsibly.
Taking time to check the rules first may bring peace of mind and let you focus on what matters, supporting students. If you are also thinking about your own wellbeing as a busy volunteer or staff member, Providers.plus may be a helpful place to explore additional support.
Keep in mind
- Check with your school or district before planning any fundraiser, since policies and approval processes vary and can change.
- Raffle, gaming and charitable-gambling laws differ significantly by state and sometimes by city or county, and often require a permit, so confirm current state and local rules first.
- Whether a donation or ticket purchase is tax-deductible depends on whether it goes to a qualified tax-exempt organization and on current IRS rules, so confirm with a tax professional.
- This directory is independent and educational, and no provider can guarantee fundraising results or legal compliance.
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Frequently asked questions
Are raffles legal for schools in every state?
No, raffle rules are not the same in every state. Some states allow them for qualifying nonprofits with a permit, while others restrict or limit them. Always check current state and local rules and your district's policy before planning one.
Do schools need a permit to hold a raffle?
Often, yes, but it depends on your state, city or county. Some places require a license or registration, while others have exemptions for small or occasional events. Contact your state's gaming or charitable gaming agency to confirm what applies to you.
Can a PTA or booster club run a raffle instead of the school?
Sometimes, but the answer depends on your state law and your district's policy. Many raffles are run by separate nonprofit groups, yet those groups may still need approval and a permit. Check with both your school or district and the relevant state agency.
Where can I find raffle laws by state for schools?
Start with your state's gaming, lottery or charitable gaming agency, and then check city or county rules. Also ask your school or district office for its fundraising policy. A school fundraising expert or legal professional may help you interpret what you find.
Are raffle tickets tax-deductible?
It depends on whether the money goes to a qualified tax-exempt organization and on current IRS rules. Do not assume tickets for your specific raffle are or are not deductible. Confirm with a tax professional.
What can schools do if raffles are not allowed?
Schools have traditionally turned to other fundraising ideas, such as product sales, fun runs, donation drives, sponsorships or events. Rules can still apply to these, so check with your district first. A school fundraising expert may help you compare options.
Educational resource. Fundraising For Education shares general information and connects people with independent fundraising experts. It is not professional advice. Talk with a qualified professional about your own situation.