About 50-50 Raffles

Named for the way funds are disbursed, 50-50 raffles have gained in popularity as an easy way for organizations to raise funds at minimal cost and effort. They are such an effective way to raise quick cash that 50-50 raffles are conducted regularly at sporting events, charity fundraisers, civic group meetings, school events and even family reunions. People purchase raffle tickets for a low price, normally $1, and for each ticket they purchase, they receive a ticket stub. The corresponding ticket is placed into a container from which the winning number will be drawn. When the winning number is drawn, the winner receives half the cash collected from the sale of tickets. The organization receives the other half.

Warning

The first thing you must do if you are considering holding a 50-50 raffle fundraiser is to check with your state and municipality to make certain it is legal to do so. And, if it is legal, find out what you must do to comply with any state and/or local regulations. Some states require a permit, in others you must hold a license, and in some it's against the law to have one at all. California prohibits 50-50 raffles because the state requires a minimum of 90 percent of the money raised in any fundraiser to go to the charity or organization in whose name the funds were raised. Many states allow these raffles to be conducted only by a registered, IRS classified nonprofit charity, church or school. Some states charge a flat annual fee for the permit or license and others base the fee on the amount of money raised each year by these raffles.

Benefits

The benefits of 50-50 raffles outweigh the drawbacks, even if there is government red tape to get through before one can be conducted. First of all, there is very little financial outlay to conduct this raffle. The only purchase necessary is a roll of 2,000 tickets that can be found at most party supply stores for less than $10. Regular raffles require the organization to have something people want. This item must either be purchased, or, if you're lucky, donated. Everyone can use a little extra cash. The second benefit is that giving a $1 donation is rarely a hardship for most people. It's an easy way for those who may not be able to spare much to help an organization or institution they value. Third, it's an easy raffle to add into the mix of events at a larger fundraiser because it is simple to conduct, and is a fun game of chance for your larger donors. Fourth, it is also a fundraiser you can repeat often without offending your regular donors because the additional contribution is low, and the odds of winning a pot of cash is high, so they feel like they're playing a game rather than making another donation. The prize winner obviously benefits by going home with more cash in his pocket than he came with, and, of course, the organization has some quick cash.

Considerations

As easy as the 50-50 raffle is to conduct, you must still put a few rules in place to prevent problems and misunderstandings. First of all, make it clear that whoever holds the winning number must be present to win and must claim the prize within a few minutes of the winning number being called. If the prize isn't claimed within the allotted time, keep drawing numbers until the prize is claimed. People who have bought tickets love it when this happens because every number that isn't claimed increases their chances of winning.

Potential

Even if your group is small, say 100 people, the potential is there for selling many more than 100 tickets and making more than $50 for both your organization and the raffle winner. Encourage multiple sales by offering incentives, such as 3 tickets for $2, 7 tickets for $5, or 10 tickets for $7, or however you choose to set up the price structure. People enjoy this, too, because it increases their chances of winning the pot of cash for less than the price of a ticket to the movies.

Function

One tip that may make conducting a 50-50 raffle a little easier is to disburse ticket sellers into the crowd attending the function during which you are conducting the raffle. Have them each wear an apron that has two pockets. From one pocket, they make change and put the money collected. In the other, they put the ticket stubs that are to be put into the bin from which the winning number will be drawn. The tickets they are selling are in a long strip carried in their hand.