A raffle is a gambling activity, where tickets are sold and prizes are awarded based on chance.
Your charitable or nonprofit organization must be organized and operating for at least 12 months before offering a raffle and your organization’s by-laws or article of incorporation must state you are organized and operation only for one of more of the following purposes:
Or be one of the following:
If your organization has a stated purpose other than those listed above, you don’t qualify to offer raffles.
Lobby groups typically don’t qualify, even with a 501c rating from the IRS.
A school’s PTA or ASB will usually qualify to offer raffles. Each group within a PTA or ASB (choir, band, debate) is part of the organization and does not have to individually meet the qualifying requirements. However, money raised and the number of raffles conducted by each group counts towards the limits for the entire PTA or ASB.
Proceeds must be used towards your organization’s stated purpose. Proceeds may go to the charitable benefit of a specific person, but only if you request and receive approval from the Gambling Commission prior to offering the raffle.
Print rules on each ticket or on a handout:
You can advertise using the Internet, telephone and mail.
Individuals must be 18 years or older to purchase tickets. Members of the selling organization may purchase tickets.
Ticket stubs from all sales must be placed into a receptacle and selected randomly to allow an equal chance of winning.
If you are conducting an unlicensed raffle, you must notify local police at least five days prior to selecting winners. If you are conducting a licensed raffle, you must notify local police, in writing, prior to selling tickets.
Members must not be paid for managing raffles. Recordkeeping and reporting requirements and forms are available on our website. Unlicensed raffle records must be kept for one year, and licensed raffles records must be kept for three years.
You may offer two unlicensed raffles to the public each year, if the combined gross revenue from the two raffles does not exceed $5,000 in a calendar year. To exceed these limits, you must obtain a raffle license.
In addition to two unlicensed public raffles each year, you may offer an unlimited number of members-only raffle, as long as the combined gross revenue from the members-only raffles does not exceed $5,000 in a calendar year. You need a license to exceed $5,000.
Tickets must be sold, and prizes awarded, only to members of your organization or their guests. Guests cannot exceed 25% of members present at the meeting.
Tickets must be sold and winners determined during the same meeting/event, at the same location.
Liquor may be awarded as a prize, if you have a permit from the Washington State Liquor & Cannabis Board.
Credit unions may offer raffles if all revenue, less prizes and expenses, is donated to charity.
Counties, cities and towns may offer raffles if all revenue, less prizes and expenses, is used for community activities or tourism promotion activities.
You must apply for a raffle license if:
When you apply for a raffle license, you will need to prove that your organization has made significant progress towards its stated purpose(s) during the 12 consecutive months prior to applying for a license.
For licensed raffles, you need to display your license when selecting winners. Check with your local taxing authority for any taxes due. The first $10,000 of net proceeds is exempt from taxation.