Raffle Information
Raffles are a method used to earn funds. The United States government categorizes raffles as games of chance, like the lottery. According to Raffle FAQ, raffles are against the law in some U.S. states or subject to strict regulations. Check your state's raffle laws if you plan to organize a raffle.
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Benefits
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Schools, charities, churches and other organizations sponsor raffles to raise money. The money is for things like supplies, operational costs or group trips. Individuals can also sponsor raffles to raise personal money. For instance, a group of friends could hold a raffle to raise money for vacation. As long as they are within their state's raffle laws, their actions are legal.
Function
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The organization offering the raffle sells tickets. A buyer purchases a ticket for a chance to win a prize. At a predetermined date, there is a drawing for the winning raffle ticket. Tickets are available in advance, on the day of the drawing or both. Common places for raffles include company picnics, family reunions and carnivals. Participants may or may not need to be present in order to win.
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Cost
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The goal is to sell as many raffle tickets as possible. As a result, most organizations sell tickets for as little as possible. According to Step by Step Fundraising, tickets are generally $1 to $2 for inexpensive prizes. Tickets can cost anywhere from $10 to $20 or more for expensive items such as cars or boats.
Types
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Some raffle tickets have numbers printed on them. When it is time to choose a winner, someone from the sponsoring group pulls a number from a container. The ticket holder with the matching number is the winner. Another form of raffle ticket contains the buyer's contact information. The buyer fills out the ticket, and it goes into a container with other tickets. During the drawing, someone removes a ticket from the container. The winner is the person whose name is on the winning ticket.
Prizes
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The prizes offered depend on the organization sponsoring the raffle. An organization can have prizes donated by local companies. The organization can also buy prizes for the raffle. Televisions, DVD players and gift certificates are common raffle prizes. Money is another popular raffle prize.
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References
- Photo Credit raffle tickets image by Alison Bowden from Fotolia.com
