Sweepstakes vs. Raffle: Which Is Right for Your Nonprofit Fundraiser?

Sweepstakes are easier than raffles. There. We said it. Not that raffles aren’t great fundraising tools—the problem is that, thanks to raffle laws, they aren’t accessible to every nonprofit.

If you’ve landed here, you’re probably trying to figure out which format actually fits your organization, your state, and your audience. This guide breaks down how raffles and sweepstakes differ, when each one makes sense, what an “opportunity drawing” actually is (not the same thing as a charity sweepstakes—more on that below), and how to run a fundraiser without ever calling it a raffle.

The difference comes down to one thing: whether participants are required to pay to enter.

Raffle: Participants buy a ticket for a chance to win. Whether virtual or in-person, raffle contests are an effective way to raise money—Eventgroove supports online raffles directly. The catch is the legal patchwork: paid entry makes a raffle a game of chance, and in the eyes of the law across most of the U.S., that’s gambling. Online raffles are illegal in 13 states, and in Alabama, Hawaii, and Utah, all raffles are banned entirely. Even where they’re permitted, licensing requirements and cross-state marketing restrictions can add real friction.

Sweepstakes: No purchase necessary. Participants can enter for free via an “alternate method of entry,” which is what takes it out of the gambling category and makes it legal in almost every state.

That distinction—paid vs. free entry—is the entire reason sweepstakes exist as a fundraising format. It’s not a technicality. It’s the legal foundation the whole model sits on.

Charity sweepstakes sidestep the licensing question almost entirely—because without a paid-entry requirement, they aren’t gambling under most states’ laws. That opens up a few things:

• No geographic ceiling. Your fundraiser isn’t limited to donors in your state. Run it online and anyone in the country can participate.
• Legal in almost all 50 states. And in many countries, which means international reach is possible too.
• Revenue holds up. The free entry option sounds counterintuitive, but the numbers don’t lie: the average sweepstakes on Eventgroove brings in 59% more than a comparable raffle. Most supporters give because they believe in the cause—the free entry option is there for legal compliance, not because it pulls donors away.

Two terms come up constantly in nonprofit fundraising circles, and they mean very different things:

Opportunity drawing is a raffle—just under a different name. Some states use “opportunity drawing” in their licensing language, and nonprofits sometimes adopt the term to avoid triggering associations with gambling. But the structure is identical: paid entry, random draw. If your state requires a raffle license, it requires one for an opportunity drawing too. The name is a rebrand, not a legal workaround.

Giveaway is informal shorthand for a sweepstakes—the same legal structure, used mostly in social media contexts. If someone says they’re “running a giveaway,” they almost always mean a sweepstakes: free entry required, no purchase necessary.

Charity giveaways are scalable outside of your geographic location because they are not considered gambling and thus legal. In other words, your fundraising event won’t be limited by your state’s borders! Plus, they’re perfectly legal online, which means your fundraiser is open to everyone in the country. Giveaways also offer the possibility to expand your fundraiser internationally as they’re legal in many countries.

If your nonprofit can’t run a raffle—or just wants to skip the licensing process—a charity sweepstakes is the most direct alternative. Here’s what that looks like in practice:

The structure: Instead of selling raffle tickets at a fixed price, you invite donations. Every donation earns entries. Critically, you also offer a free entry path (the alternate method of entry)—usually a mail-in option or a simple online form. This is what makes the whole thing legal.

The terminology: Don’t use the word “raffle” anywhere in your campaign. Call it a sweepstakes, a drawing, or a fundraising sweepstakes. Using raffle language can create legal exposure even if the underlying structure is compliant.

The rules: Your sweepstakes needs official rules that spell out eligibility, entry methods, prize details, and drawing process. On Eventgroove’s platform, these are built in and legally compliant—you don’t write them from scratch.

The drawing: Winners must be selected by a verifiable random process—a random number generator, not a manual draw.

What you can’t do: A sweepstakes can’t be structured as a 50/50, and you can’t assign specific prizes to specific donation amounts (the way a Tricky Tray works). Every entry has an equal shot at every prize.

For a full side-by-side breakdown, download the sweepstakes vs. raffle cheat sheet—it covers the key rules in a single page.

• Entries: All purchased tickets in a sweepstakes have a chance to win any prize.
• Official Rules: Your sweepstakes must have official rules that detail the terms of the campaign. When you use our fundraising platform for your campaign, legally compliant official rules for each sweepstakes are built in. The rules cover a worldwide drawing where people can pay the entry fee to win any prize listed on your fundraising page.
• Alternate Method of Entry: For a sweepstakes to be legal, you must offer a free entry option. Most people are willing to donate for a charitable cause. Those who enter for free are still introduced to your charity and cause.
• Types of Drawings: You cannot run a 50/50 drawing or a drawing in which different entry donations are assigned to specific prizes (as in a Tricky Tray). In a sweepstakes, every entry has an equal chance of winning any of the prizes.
• Terminology: Never use the word “raffle” when referring to your charity sweepstakes.
• Drawing: Sweepstakes prize winners must be chosen through a random drawing using a random number generator.

Choose a raffle if:

• Your donors are all local (same state)
• Raffles are fully legal and manageable in your state
• You’re hosting an in-person or online event within a raffle-friendly state
• You have capacity to handle licensing and compliance requirements

Choose a sweepstakes if:

• You want to fundraise online or reach supporters outside your state
• Your state restricts or bans raffles
• You want to avoid the licensing process
• You’re running the campaign primarily through email, social, or digital channels

When in doubt, check your state’s raffle laws first. Our state-by-state raffle law guide is the fastest way to know which path is even on the table for your nonprofit.

For a quick side-by-side, grab the full sweepstakes vs. raffles cheat sheet.

Similar to raffles, your fundraiser’s goal and target audience should factor into the prizes offered. Eventgroove sweepstakes organizers have given away everything from cars to gift baskets! Cynthia, our Head of Customer Success, offers this advice for any nonprofit hosting a sweepstakes, “Big ticket prizes may seem like a risk for an organization to invest in, however, if marketed well, the proceeds will compound.”

Reach more potential giveaway participants by incorporate all the promotional tools at your disposal.

• Utilize Social Media: Promote your sweepstakes or fundraiser on all your social media platforms. Use engaging posts, stories, and live videos to capture the interest of your followers.
• Email Campaigns: Send emails to supporters and donors with a link to your sweepstakes site. Personalize your messages to increase engagement and highlight the importance of participating.
• Print Marketing Materials: Create and distribute printed flyers and postcards with QR codes. Place posters in high-traffic areas and at community events, making it easy for people to enter the sweepstakes by simply scanning the code with their phones.
• Your Website: Make sure to feature the sweepstakes prominently on your nonprofit’s homepage. Use a pop-up or a banner to catch visitors’ attention immediately. Include clear calls-to-action (CTAs) that direct visitors to enter the sweepstakes.
• Use Paid Advertising: Utilize Google Ads grants available for nonprofits or run targeted ads on social media platforms. Paid ads can significantly boost visibility and attract new participants who may not be reached through organic methods.
• Content Marketing: Write blog posts or create videos about the impact of your nonprofit’s work and how the funds raised from the sweepstakes will be used.
• Engage with Participants: Share updates, thank participants, and remind them to enter or donate. User-generated content, like posts or stories from participants, can also create a buzz.
• Optimize for Mobile: Ensure that your nonprofit sweepstakes site is mobile-friendly. Many people will enter via their smartphones, so a clean, fast mobile experience is essential.

Setting up a sweepstakes on Eventgroove takes minutes—the platform handles winner selection, official rules, and compliance automatically. Follow the prompts to build your nonprofit’s unique fundraiser.

Your  campaign is automatically equipped with an auto-number generator for winner selection and the necessary official rules to keep things legal.

To see how easy it is to set one up and to get a feel for all the promotional, analytics, and management tools that are at your fingertips, have a look at our quick how-to video:

If a sweepstakes is the right move for your nonprofit, Eventgroove makes it straightforward to launch, manage, and promote—without the legal paperwork. Start your charity sweepstakes today.