Are raffles legal in California? If your nonprofit is planning a fundraising raffle, this quick guide breaks down the key California raffle laws you need to know before selling your first ticket!
Raffles are a fun and unique way to raise funds for your mission; however, many U.S. states have their own specific raffle laws, including California.
In this article, we’ll break down California state raffle laws and guide you step-by-step through how to legally and successfully host a raffle for your nonprofit.
If you don’t have time to sift through legal jargon, don’t worry! We’ve broken down the essentials of California raffle laws so you can feel confident about hosting your next fundraiser.
California law defines raffles as a type of lottery in which organizations can give away prizes to people who pay for a chance to win.
The good news is that raffle laws in California do allow nonprofits to run fundraising raffles as long as they meet certain requirements.
You can legally host a raffle in California if you are:
Please note that online ticket sales are not allowed in California, which we’ll discuss later in this post.
According to California Penal Code Section 320.5, nonprofits must be tax-exempt under California law, so you don’t necessarily need 501(c)(3) status to host a raffle in California.
Other nonprofit classifications can work as long as the raffle proceeds go towards charitable purposes.
You can double-check your tax-exempt status through an Entity Status Letter on the Franchise Tax Board website.
Here’s a quick rundown of important California raffle requirements your nonprofit should know before getting started.
You must direct at least 90% of the money raised from raffles to your charitable cause in California – and not to individuals.
Your nonprofit raffle must take place in California and be supervised by someone 18 or older.
You can’t host your raffle in licensed gambling businesses like casinos or racetracks. California also does not allow gambling devices like slot machines or other gambling games.
Before you begin selling raffle tickets, make sure your donors know exactly what they could win and award those raffle prizes as promised.
Once your winners are selected, let them know right away and post the results on your nonprofit’s website or social media, or share via email.
In California, there are a few legal steps you need to follow when planning your raffle to keep things above board.
We’ve broken it down into six easy steps, so you can focus on raising funds, not deciphering fine print!
Before you start selling those tickets, make sure you’re able to host one in the first place.
Remember, to host a raffle in California, you must be a tax-exempt nonprofit running your organization for at least a year in California.
Once you’ve double-checked that your nonprofit is eligible, it’s time to register your organization with the California Attorney General’s office.
You’ll need to mail in a few things at least 60 days before your raffle:
Mail everything to the Office of the Attorney General in Sacramento.
Once your application is approved, you’ll get a confirmation letter along with your raffle permit number. This permit is good for one year – and with that, you’re all set to start selling tickets!
Something to note: If you’re giving tickets away for free with no purchase necessary, you don’t need to register.
As you’re planning your raffle fundraiser, keep in mind California has a few specific rules for raffle tickets:
Need a little help creating your tickets? Check out this blog, which is full of free, printable raffle ticket templates for nonprofits.
While it’s illegal to sell your raffle tickets online in California, you still have options!
Your nonprofit can design your tickets online, print them out, and sell the physical versions at your next event or through local businesses.
You can also use digital platforms like your website, email, and social media to spread the news about your raffle and let people know where they can grab a paper ticket in person.
The big day is here! It’s time to draw your winners. Here are a few best practices to make your raffle great:
After your raffle is over, the work isn’t finished! You’ll need to submit your post-raffle report, Form CT-NRP-2, by February 1.
This form asks for things like how much you raised through ticket sales, what you spent, and where the money went.
Like we said before, it’s also how the state makes sure that at least 90% of your funds go directly to your nonprofit’s mission.
Now that we understand the rules, let’s take a look at the different types of raffles you can run. We’ll also walk through any California-specific guidelines you’ll want to be aware of for each one.
50/50 raffles are a type of raffle where the revenue from ticket sales is divided in half between the winner and your organization. The more tickets sold, the bigger the prize!
But here’s the catch: in California, nonprofits are required to use at least 90% of raffle proceeds for their charitable work. So, are 50/50 raffles even legal in California?
For most nonprofits, the answer is no.
California 50/50 raffle laws allow this type of raffle only if your organization is officially affiliated with a professional sports team through California’s Major League Sports Raffle Program (Penal Code section 320.6).
For everyone else, it’s best to stick with traditional raffles where the majority of funds support your mission.
While California does allow large cash prizes for raffles, your nonprofit must still direct at least 90% of those proceeds to your mission.
Because of that, we recommend offering smaller prizes or fun door prizes instead. These options make it easier for more people to join in and support your mission.
A car raffle is exactly what it sounds like. The grand prize is a brand-new (or gently used) car!
California does allow car raffles, but just be sure you’re upfront about everything, like:
If you’re partnering with a dealership, make sure you’re clear on all the details so you can pass along accurate info to your lucky winner!
Who doesn’t love a free vacation? If you’re giving away a vacation to your winner, make sure you fully disclose all the fine print.
Let participants know if the trip is fully or only partially covered, and list any blackout dates or restrictions.
High-end raffle prizes like jewelry, electronics, and designer bags are always a hit!
If you’re offering a luxury item, be sure to include the important details when promoting it, like the brand, estimated retail value, and the condition (especially if it’s pre-owned).
Just because you’ve heard it before doesn’t mean it’s true! Let’s bust some of the most common myths about California raffle laws so your nonprofit doesn’t accidentally break the rules.
It’s a common misconception, but in California, it’s actually illegal to sell raffle tickets online. You can promote your raffle digitally, but all ticket sales must happen in person.
It might seem like small raffles fly under the radar, but if you’re charging for tickets, every raffle in California must be registered, no matter the size.
Not quite. 50/50 raffles are only legal in California for nonprofits affiliated with professional sports teams. For most nonprofits, this type of raffle isn’t allowed under California state law.
Though you can’t sell raffle tickets online in California, raffles are still a great way to raise funds at your next auction, dinner, or gala!
If you need a little help managing the details, Donorbox Events is the perfect tool.
While raffle tickets must be sold in person, Donorbox can help you sell tickets to your overall fundraising event, manage your guest list, and track offline raffle ticket sales. Then, use Donorbox Live™ Kiosk to collect cashless, in-person payments during your event.
Let Donorbox handle the digital logistics so you can focus on connecting with supporters and selling those raffle tickets face-to-face.
Check out all our features to learn more and sign up for free today!
Yes, raffles are legal for eligible nonprofits in California, as long as they register with the Attorney General’s office and follow state guidelines. This includes directing at least 90% of proceeds to charitable purposes within the state.
50/50 raffles are only legal for nonprofits affiliated with professional sports teams under California’s Major League Sports Raffle Program. Most nonprofits are not eligible to host this type of raffle.
No, selling raffle tickets online is illegal in California. However, nonprofits can promote the raffle digitally and sell physical tickets in person.
Charity raffles in California are regulated by the California Attorney General’s Office. Nonprofits must register and report raffle activities through this office.
With a background in professional writing, Lydia has over five years in nonprofit communications under her belt. Lydia’s passion for supporting nonprofits sparked during her college internships with global mission organizations, where she gained valuable insights into fundraising marketing strategies. These experiences have continued to fuel her dedication to empowering nonprofits through her writing.
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Lydia Wohlgemuth