Raffle Fundraiser Tips For Nonprofits
Nonprofits often use raffles to introduce their cause to new supporters. They can also increase their fundraising potential by using 50/50 raffles. Unlike other ticket types, this type of raffle splits the money collected between the winner and the organization.
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Most nonprofit raffle ticket templates have space to upload local business sponsors, allowing them to boost ticket sales. In addition, they feature perforated stubs to allow supporters to write their contact information.
Prizes
Whether you’re organizing an in-person fundraising event or an online raffle, it’s important to have a great selection of prizes. A quality raffle is a big draw for your attendees and helps you raise more money for your cause. If you’re not sure how many prizes to offer, start by drawing up a list of potential contributors. This could include vendors, local businesses, major donors, and board members.
Prizes are what make your fundraiser unique and help you stand out from the crowd. For example, a fashion-related prize like a shopping spree at a local boutique with a personal styling session will appeal to women. Or, a culinary experience like a private chef dinner will be appreciated by foodies.
Ask your local businesses to underwrite your prize, if possible. This will ensure the financial success of your raffle and build a long-term relationship with a community partner. In addition, it will allow you to connect with people who have bought your tickets and develop them into long-term supporters.
Ticket sales
Ticket sales are the lifeblood of any fundraising event. They determine whether you meet or exceed your goal, so it’s important to plan ahead and ensure that you have enough tickets sold to cover the cost of the event. This includes the venue rental, food and entertainment costs, and any other expenses that may be incurred.
The key to maximising raffle ticket sales is to use effective marketing strategies. These include choosing attractive prizes that appeal to the audience, offering discounts and bundles, promoting the event through social media and email, partnering with local businesses for sponsorship, optimizing your sales team’s training, and creating eye-catching displays of the raffle items on-site.
Nonprofits can also mobilize supporters, volunteers, and donors as ambassadors for the raffle to spread the word about the event and encourage their networks to buy tickets. In addition, announcing the winner of the raffle is an exciting moment for event attendees and your organization.
Drawing
If you’re hosting a raffle fundraiser, you’ll need to draw the winner. This can be done using a random number generator online, or with a live drawing at an event. This type of fundraiser is a great way to promote your organization and build excitement for the event. It’s also important to collect contact information from supporters who buy tickets.
Nonprofits can choose prizes from their own inventory or solicit gifts from vendors, sponsors, and other local businesses. Prizes can range from gift certificates for services such as pet portraits or car servicing to once-in-a-lifetime experiences.
Choosing the right prize will help your nonprofit reach its fundraising goals. You should consider the suggested retail value of the package and the costs of advertising, promotions, ticket sales, and printing. You should also take into account your organization’s reach, average donor size, and existing donors when deciding how much to charge for each ticket. The more people who want to support your cause, the higher your revenue goals will be.
Tax deductions
Raffles are a great way to raise funds for your organization, especially when you’re able to find prizes that are worth more than the cost of the tickets. However, the IRS considers raffles to be gambling and requires a license in most states. In addition, they require documentation from ticket buyers and proof that the prize was procured at cost.
For tax-exempt organizations hosting fundraisers, a careful review of the IRS guidelines is essential. This includes consideration of the impact on tax-exempt status, avoiding unrelated business income, recordkeeping, and tax withholding.
It’s also important to note that the purchase of a ticket for a raffle is not tax-deductible in the US or Canada. Rather, only the amount that exceeds the fair market value of the goods and services received by the ticket purchaser is eligible for tax deduction. If you’re not sure, it’s best to consult with a qualified tax accountant for more information and assistance.
