Hi Sandra-

I want to have a “travel give away” raffle. I was thinking about giving away a 4 day cruise and the raffle tickets would be about $20. I think I would need to sell about 200 to make a profit of $5,000. However, my question is how would a “grass roots” organization pull of a successful event like this?

Thanks,

Kenita Pierce-Lewis, CEO & Founder
H.O.P.E, Inc
Duluth, GA

Hi Kenita, this is a great question!

First of all travel is one of the best prizes that you can give away!  People love the idea of winning a trip or even a mini-vacation.  I’ve been on three cruises myself and would instantly be attracted to a raffle with a cruise as a prize.

Now the next thing to consider is the ticket price.  Is $20 the best ticket price? As I mentioned I love cruises, so if I was already a supporter of H.O.P.E. or was a friend of yours or one of your volunteer ticket sellers I’d be happy to buy a ticket at $20.  However, if I were not familiar with your cause, I might hesitate at $20.

With tickets at $20 you would need to sell 250 tickets, for a gross profit of $5000.  If you were to get the prize donated then you would still need to factor in ticket printing and any advertising costs in the budget.  So depending on those, the real profit would be $4500 – $4900.

I always recommend setting a higher goal in order to account for both the budget and unexpected circumstances.  For example, you might give a volunteer a pack of 10 tickets to sell and they come back with only half of them sold.  So a goal of 300 tickets @ $20 each would help you reach your goal.

On the other hand, if you decided to sell tickets at $10 each, the goal would need to be at least 600 tickets sold.  Close friends, family and current supporters would still be encouraged to buy at least two tickets and yet the lower ticket price would attract people who are less familiar with your cause, but attracted by the prize.

All that math aside, let’s get back to your question!

There are two ways that even a small group can be successful with a raffle fundraiser: motivated volunteers and ticket buying incentives.  These are so important that we devoted a separate chapter to each of these topics in the Raffle Secrets guide.

Your volunteer ticket sales force

Board members, committee members and other volunteers can sell a lot of tickets to their personal networks. The personal touch is often the best way to sell the most tickets.

If your state and locality allow, have volunteers sell raffle tickets directly to coworkers, friends, and family. (When encouraging volunteers to sell tickets at work, advise them to check with their supervisor first. Some companies have a prohibition against sales in the workplace.)

Incentives for your ticket sales force

As an incentive, offer one or more prizes to your ticket sellers. Each ticket sold may count as an entry into a separate random drawing for a prize, or you can award prizes directly to those who sold the most tickets.  Again, gift card work well for these awards.

If volunteers cannot sell tickets, you can still reward those who motivate ticket sales. As tickets are sold, record who told the ticket buyer about the raffle. Offering referral bonuses to ticket buyers is another way to encourage word-of-mouth ticket sales.

In addition to individual prizes, competition among teams can drive ticket sales as organized groups of volunteers strive to outdo each other. Individuals who don’t see value in their singular effort can be highly inspired when asked to work as part of a team.

Ticket buying incentives

Besides offering incentives for ticket sellers, create some enticements for people to buy tickets.  These special offers make it even easier for volunteers to do their job of selling tickets. Here are a few ideas:

• Secondary prizes at the final drawing – Adding additional, smaller prizes gives ticket buyers more opportunities to win.  So with better odds of winning something, people are more interested in buying a ticket. Secondary prizes should appeal to the widest audience so items such as gift cards work great.
• Interim or “Early Bird” Drawings - To inspire ticket buying from the very first day, schedule prize drawings at regular intervals before the main drawing. These drawings spark sales and maintain deadline urgency between the excitement of the launch and the anticipation of the big event.
• Multi-Ticket Discount – Offering bonus free tickets or a reduced price for a larger number of tickets encourages people to buy more tickets. For example, $10 for one ticket, $20 for 3 tickets. Or $20 for one ticket, $50 for 3 tickets, $100 for 8 tickets

Ready?

With motivated volunteers even small groups can be successful with a raffle fundraiser.  Add in ticket buying and ticket selling incentives and you are even more likely to achieve your goals.

Raffle Secrets includes more details on all of these strategies that can make a raffle for a group, large or small, a big success.

There are quite a few great websites that can help you with sourcing items that are at least half off the retail price.

1. BiddingForGood.com is an online auction service for non-profits. You can find all sorts of items up for bid from all over the country and browse dozens of different auctions right from the comfort of your own couch. Check out their auction boards for ideas or even bid on one to use in your raffle. Another great service that BiddingforGood provides is what they call “instant items.” They can get great prizes for you!

2. Woot.com offers great deals on one item per day (New, not used). That’s right, they only sell one item per day from their site. They have a limited number available, but great deals can be had, if you check in with them every day. Often they feature electronics, but there are other channels including a “KidsWoot” with childrens merchandise.

3. Groupon.com focuses on deals from a particular city or metro area. They typically feature restaurants, hair salons, day spas, and other local services. You can find items at up to 70% off retail.

4. LivingSocial.com also features deals from a city or metro area. They typically feature restaurants, hair salons, and other services. Deals are often at 50-70% off retail. Like with other deal sites though, watch the fine print.

5. Mamapedia is another deals site. They are different though because you will mostly find deals that are of interest to parents such as amusement park passes, house cleaning, dental, summer camps, kid’s gyms and much more. I’ve been on their email list for several months and they have a wide variety of offerings, usually at least 50% off retail.

6. Post your request on Craigslist.com. Most large cities have a section on Craigslist for their own classifieds. You can post your request and/or events in the Community Activities section. Also view the items for sale section. Most of the items on this site are used, and you definitely don’t want to raffle off used stuff. But you may just stumble upon a great new item on this site.

7. eBay. Yes of course, eBay! There are many different categories of merchandise to browse. Many professional eBay sellers just sell new merchandise too. You may find some interesting items here at a great price.

That’s right. For all the hub-bub swirling around your raffle, it’s easy to just adopt the mind-set that “A ticket’s a ticket. What’s the big deal?”

Well, actually, it is a very big deal. Many people buy their ticket(s) weeks ahead of the actual drawing and will hold on to it. That’s a little piece of advertising for your organization that’s stuck up on someone’s refrigerator with a smiley face magnet.  You want it to look good.  Or at the very least, you don’t want it to look bad, right?

Honestly, people probably won’t notice if your ticket is a work of art, but they will certainly notice if it’s a flimsy, crumpled up piece of copy paper.  So, when it comes your raffle ticket, you’re playing not to lose.

A Basic Raffle Ticket Blueprint

There are two parts to a standard raffle ticket design: the part the ticket buyer keeps when he or she purchases it and the part the non-profit that is sponsoring the raffle keeps. The part the nonprofit keeps is called the stub, and this is the actual ticket that is placed into the drum or barrel with all the other tickets, waiting to be drawn.

When a person buys a ticket(s), the person selling it or collecting it must make sure that all the information is properly filled out.  If there is anything that’s isn’t clear, and that ticket happens to win, there can be confusion that could lead to a bad situation for everyone involved.

These kinds of errors can especially happen if the person buys a great number of tickets and quickly scribbles out the information by hand.  To avoid any potential headaches, make sure that whoever is collecting the ticket stubs checks to verify all the information is accurate, legible, and complete.

While each state does have different regulations as to what must appear on a raffle ticket, here is a very basic list of what should appear on each portion of the ticket.

On the portion the TICKET BUYER keeps:

• Name of the non-profit conducting the raffle
• The date and time of the drawing
• The location of the drawing- use a specific address, not just the name of the building or business
• The grand prize and any other lesser prizes that will be awarded
• The ticket number and the number of total tickets printed- e.g. 0088 of 1,000
• The amount each ticket costs- e.g. $5 or 5 for $20
• The statement “Person need not be present to win” (if required)
• The raffle license number issued by the state (if required)

On the portion the NON-PROFIT keeps (also known as “the stub”):

• Name of the non-profit conducting the raffle
• The date of the drawing
• The buyer’s full name
• The buyer’s phone number
• The buyer’s address (street, city, state, zip code)
• The buyer’s email address

Note: Be sure to make the stub portion of the ticket big enough so that the lines don’t have to be smushed together and people have to write super small.  Personally, I can barely print legibly on college ruled lined paper, so please give people like me some room to write legibly!

Here are five other items you should think about when designing your raffle tickets:

1. Check with your state’s regulations as to what has to be legally included on each ticket. Some states have stricter rules/laws than others. For instance, some states require the raffle license number be printed on both parts of the raffle ticket (as well as on all advertisements for the raffle!), while others demand that you include what all the prizes are on the ticket’s face.

Some states even make you print the statement “You need not be present to win” on the ticket. If you miss something that the state requires, that could place your entire raffle in jeopardy. Do your homework before sending the tickets to the printers.

2. Although there are numerous software packages you can purchase and several interactive websites on which you can create your own tickets, I would urge you to consider going old school and hire a professional print shop to make up the tickets for you.
I think that it’s worth the little extra money to make sure the tickets come out looking top notch. This professional touch will give your group a credibility that your personal bubble-jet just won’t. I’ve made business cards at home before too, but they never look as sharp as when I’ve paid a printer to do them. In addition, if you find a printer that has done up raffle tickets before, they might be able to help you ensure you’ve got everything you need in the right spot!

3. Think about selling advertising space on your raffle ticket. You could include a small logo of a corporate sponsor and write something like “The XYZ Corporation proudly presents the 2011 Annual Raffle for the ABC Foundation”.

Since every single ticket buyer will be laying eyes on their tickets very closely, you could charge a nifty sum for this prime advertising space. Check with other non-profit groups or schools in your area to get an idea for what business will pay for advertising in yearbooks, sports programs, and the like. Never pass up a chance to make a buck for your non-profit!

4. Make sure the tickets are printed on a heavy-duty card stock, since they may be in the possession of the ticket buyer a while before the drawing occurs. A thicker stock also makes a better impression than a flimsy piece of paper.

5. Remember that raffle tickets have two parts- the section that the buyer keeps and the stub that gets turned into the organization for the actual drawing. When individual tickets are sold, be sure that all the information matches on the stub and on the part the buyer keeps. This includes the raffle ticket number (0088 out of 1,000 for example).

To raffle ticket holders and everyone at the drawing event, a raffle’s success is in the winning ticket. However, behind the scenes, for the organization putting on the raffle, it is defined much differently.

A successful raffle fundraiser—

1. Complies with state and local gambling regulations
2. Meets the fundraising goal with the net ticket proceeds

Just two keys to a successful raffle?  Yes, but of course the devil is in the details as they say!

To cover the first key, complying with state and local gambling regulations, first check with state raffle laws.  There’s no one US federal law that applies the same regulations to the entire country.  Raffle regulations, like other forms of gambling, are controlled by the states.

Raffle Secrets has an entire chapter on legal issues.  It includes a checklist to use when contacting the state attorney general, how to write the raffle guidelines, and ideas for getting help with planning your raffle.  Beyond contacting your governing authorities, many of the legal questions can be answered in step one in this book.

Beyond making sure that it’s legal, the most important aspect of having a successful raffle is that it meets the fundraising goal with the net ticket proceeds.

Five essential elements for a successful raffle fundraiser

While it may seem like selling tickets and selecting a winner are the obvious parts of a raffle fundraiser, there are other key aspects to consider. These five elements are critical to the success of a raffle fundraiser—

1. Ticket sales. Your fundraising goal is the net proceeds from ticket sales. Balance your ticket price and the quantity of tickets to be sold with the costs of services, administrative costs, and advertising to make sure you can meet your goals.
2. A desirable prize or prizes. Be sure to select a prize or prizes that your audience would be excited about winning. Whether large or small, stick to prizes with a universal appeal.
3. An audience who is willing and able to buy tickets. Obviously, your raffle will be a failure if no one buys your tickets. Like with any other fundraiser, take a good look at your audience. Be sure your audience approves of this type of gambling, has money to spend, and can afford your ticket price.
4. Staff and volunteers to sell the tickets. Ticket sales drive the raffle, so be sure you have enough willing people to sell the amount of tickets needed to meet your fundraising goal in time for the event.
5. A location for the ticket draw event. A raffle ticket drawing can be its own event, but you can combine promotion efforts and venue expenses by making the drawing part of an annual gala or dinner, the county fair, or other regularly scheduled community event. Having these extra people in attendance may increase last minute ticket sales, and a public drawing held in front of a larger audience will diminish doubts that the winner was fairly drawn.

Each of these are absolutely essential to having a successful raffle.

Often what we think of when we hear the word gambling are games like poker or slots at casinos.  But anything that is a game of chance that requires money to play is in effect gambling.  So games such as bingo and raffles are also forms of gambling and fall under state laws.

Like I said, raffle legalities vary so much from state to state.  However, there is one thing that is clear in states that do allow raffles.  State laws restrict gambling events like bingo and raffles to nonprofits and state entities.  The states want to have control over lotteries.  Buy a lotto ticket at the corner store and the proceeds go the the state.   Raffles that are run outside of state governments must benefit a charitable organization.

So while it would make things so much easier if there was one federal system over raffles, that is just not how raffle legalities work.  So how do you find out about legalities in your area?  Check with the state laws in the state in where you live.  Most states have information about this online.  You can view a list of laws by US state here.

Before you proceed further with considering planning a raffle, you can get a quick start by answering these two questions:

1. Will your raffle be run by and benefit a registered charitable organization?
2. Have you checked with the state and local laws?

If you can you answer yes to these two questions then a raffle may be a possibility for your organization.

Raffle Secrets has an entire chapter on raffle legalities that goes beyond these two basics. It includes a checklist to use when contacting the state attorney general, how to write the raffle guideines, and ideas for getting help with planning your raffle. So, for both legal and practical reasons, contacting legal authorities in your area about charitable gambling laws is the first step for planning your raffle.

Gift cards in values of $20, $50, $100 are nearly as good as cash, right?  But they look kind of boring just sitting on a table.

Here is a way to add some “wow factor” to your gift card prizes.  I saw these gift baskets at my local grocery store and this idea just struck me.  Create your own gift baskets using boxed candy to create a fun prize that displays the gift cards well.

What you need:

• Boxed candy (4)
• Extra packaged candy
• Plastic stick card holders like florists use
• Styrofoam for bottom of the box
• Scissors or xacto knife to cut foam
• Hot glue gun
• Clear plastic gift wrap and a bow
• Colored plastic gift wrap
• Gift cards

• Using the hot glue gun, glue the four boxes of candy together.
• Cut the foam to the size of the inside of the box and put inside
• Put candy on to the plastic card holders and stick into foam
• Put gift cards onto plastic card holders and stick into foam
• Add colored gift wrap for decoration (like the yellow smiley face wrap in this basket)
• (Optional) Wrap the entire box with clear plastic wrap and tie with a bow

Planning a Raffle in 2012

Visit Raffle Secrets for more information on planning and holding your raffle.

So I got to thinking, why not have your raffle drawing at the mall.  It’s a great public location, so you’ll have lots of people “witness” the drawing and attest to its validity.  You can build some excitement about your raffle drawing and your organization. If you plan just right, and work out permissions from the mall, you can sell tickets the day of the drawing, or for several weeks leading up to the drawing date.

It would depend on the volume of traffic your local mall gets whether it would be worthwhile to staff a ticket sales location all week.  Perhaps you just have people there on the weekend.  But take advantage of the empty storefront’s windows and create an attractive display about your raffle and your charity.  For example, if you are giving away a car, why not display the car in the storefront?  What a great way to attract attention!

No matter what base price you decide on, you can sell more tickets by using incentives.

Here is an example of one group using this strategy.  The Kiwanis of Cape May are raffling off a 2011 Ford Mustang.  Here’s the terms “Only 500 tickets will be available at $100 each. If you buy five you get a sixth free.”

See what they did?  First, a limited amount of tickets creates scarcity.  It says to the potential ticket buyer “there are only so many, you better get yours now before they are gone!”

Then, they give an incentive for people to buy 5 tickets.  If you are willing to donate $500 you’ll get six tickets instead of just five.  So if someone wants to give more, they have an extra push to go to the $500.

These ticket buying incentives can make a big difference in the outcome of your raffle!

In the Raffle Secrets ebook we have a whole chapter on strategies for boosting ticket sales. Plus there is a special report just on car raffles with several other examples of car giveaways.

With that in mind, here is a list of the top five best raffle prizes.

1. Cars – One of the most popular raffles prizes is an automobile. A convertible, an SUV, truck, sedan or even a classic car… people love the idea that they could win a new car.

2. Cash – Cash is always a great motivator for people to buy a raffle ticket! Just be careful on this one, many states and local areas prohibit cash as a prize because it overlaps with the lottery and gambling regulations. If your area does allow a cash prize, also be sure that you get some donations or underwriters to offset the cost of the prize.

3. Travel – Who wouldn’t want to win a vacation? Roundtrip airfare, a package deal, a cruise, hotel stays, even airline miles all make some of the best prizes. The larger trips, such as week-long cruises or packages with airfare and hotel, may draw more ticket buyers.

4. Electronic Equipment – Big screen TVs, iPads, smart phones, and MP3 players are also attractive prizes. These are big incentives for people to buy tickets. Just don’t pay retail!

5. Gift Cards – These prizes have great broad appeal to your ticket buyers. Plus they are easy for many retail and dining businesses to donate to you. They make great secondary prizes, or bundle them together in a gift basket.

Raffle laws are different for every state, but they agree that, in general:

A raffle is a game where players buy tickets for a chance at winning a prize, or prizes. A raffle winner is selected at random, usually at a public ticket drawing event.

This random outcome with the players’ money at risk makes a raffle a gambling venture, and subject to state gambling laws.

For an organization conducting the fundraiser, a raffle involves inviting dozens to thousands of people to buy tickets for a chance to win a certain prize(s) at a drawing scheduled for a predetermined date. Typically, the winning ticket number(s) is drawn randomly from a container holding a representation of every ticket number issued.

In some raffles, the selected ticket number is matched to a collection of prizes that have numbers attached to them. This book addresses the style of raffle that does not assign a specific prize to a specific ticket. Instead, any ticket holder may win any one of the possible prizes.

What a raffle is not

For a complete understanding of what a raffle is, it may help to know what a raffle is not.

A raffle is NOT:

1. A way to make personal or business income. Federal, state and local laws allow raffles only for federally recognized charitable organizations, if at all.
2. A drawing or sweepstakes. Ticket purchase is not required for this type of random drawing.
3. A contest.While not bound by law, this requires a winner be selected based on comparative skill, judging, or some other non-random method.
4. An immediate money maker.Sufficient time is necessary to apply for a license and/or permit, thoughtful planning, and ticket sales.
5. A guaranteed fundraising win. Expenses can exceed proceeds if there are insufficient ticket sales or an ill-prepared or disregarded budget.

So that should answer the basic question, what is a raffle!