RAFFLE SOFTWARE FOR US NONPROFITS

Raffle Software for US Nonprofits

Sell tickets online and in the room, then draw on screen in front of everyone.
Check your state's rules before you start.

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Before You Sell a Single Ticket

Raffles are state regulated

A few states prohibit raffles outright, and most require a license or registration first.

Several states restrict who may sell tickets, often to volunteers rather than paid staff or third parties. Selling across state lines is restricted in many places, which affects whether you can sell online at all.

How proceeds may be used

Some states specify what raffle proceeds can fund and require reporting afterward.

This is not legal advice. Our state by state guide is a starting point. GalaBid does not obtain licenses or handle compliance for you.

Generate more from every raffle ticket sale

A transparent payment approach and tip-sharing means more funds go to your cause.

Supporters can add an optional tip at checkout, and you automatically receive 10% of every tip, creating a new stream of revenue without raising ticket prices. You also stay in control of processing fees, choosing whether you absorb them, supporters cover them, or supporters decide at checkout, with no markup on Stripe fees, ever.

Draw the raffle live at your event

GalaBid's leaderboard display brings the draw to life with animated visuals updating in real time.

Build a custom draw display and watch each winner's name appear as their ticket is pulled. Use the display to showcase sponsor branding, your cause and prize details.

Raffles with the features you need

Over 100 features, built to raise more from every ticket.

Each raffle comes with its own link and QR code for email, social and the event itself. Build excitement with live countdown draws and instant winner reveals. Combine ticketing, auctions, and donations seamlessly in one campaign for a maximum-impact fundraising experience.

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Fundraising payment confirmedfunds go straight to account

Other platforms hold your funds.
With GalaBid, funds go directly to you.

Every dollar your supporters give goes straight to you, not through us.
GalaBid never holds, delays, or touches your funds.
No holding accounts. No delays. No platform float. No risk transferred to you.

Raise more at your next fundraising event

Receive our latest features brochure and a personalised quote to see what GalaBid can do for your next event
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How do I run a raffle for my US nonprofit?

Check your state's rules first and get any required license before selling a ticket. Then create your raffle on GalaBid in minutes. Supporters buy tickets and receive numbered digital tickets by email or text. The draw is a one-click process with real-time winner notifications and a draw log for your records. With payments through your own Stripe account, proceeds settle to your bank automatically. Our US raffle rules by state guide covers licensing requirements and where raffles are prohibited.

GalaBid Online Raffles Explained:

Federal Reporting and Tax

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Form W-2G reporting

Reporting is triggered when the prize, less the wager, is $600 or more and is at least 300 times the wager.

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Withholding above $5,000

Withholding obligations apply above $5,000. Rates have changed over time, so confirm current figures with the IRS or your CPA.

flexible payment crowdfunding

Noncash prizes

Noncash prizes have their own treatment, where the winner pays the organization the withholding on the prize's fair market value.

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Tickets are not deductible

The IRS does not treat a raffle ticket purchase as a charitable contribution, because the purchaser receives a chance to win in return.

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What GalaBid does and does not do

The platform provides ticket and winner records. It does not calculate, withhold or file anything on your behalf.

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Digital receipt

Receipts are issued the moment payment is made.

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Custom design

Add a home page and info pages for your cause, other fundraising activities and sponsors.

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Fast receipt of proceeds

Raffle proceeds are processed by Stripe and deposited to your bank account on Stripe's schedule.

Advice to help you with your online raffle campaign

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Helping over 10,000 fundraisers raise more since 2011

trustpilot-stars

"This is our second year using Galabid for our biggest event of the year. Their customer svc is amazing; they are ALWAYS there to help when needed (even when I had a question at the end of our event at 9pm!) I also conducted a comparison between Galabid and other top bidding sites - Galabid was at the top. You won't be disappointed."

trustpilot-stars

This was my first experience running an online auction and this was such a great experience. The help chat was so helpful with any questions that I had. Will definitely be doing this again next year”

trustpilot-stars

“It's the first time we used GalaBid but we'll certainly use them again - it was brilliant. Extremely easy to upload items to the online auction that we created. Support online chat function was excellent - got immediate answers to anything we were confused about. Added donation function as an additional item on our auction - it was so easy and so amazing and we were thrilled with the whole thing!”

trustpilot-stars

“Our Pride 2024 Event fundraising was a success in part due to the Galabid Auction/Raffle/Donation page we were able to create. It was simple to do, and easy for the participants to view and get their bids in. The pages of auction items looked great! Very smooth process and also the funds were deposited quickly to our account. Thanks!

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Frequently Asked Questions About US Raffles

Are charity raffles legal in the US?

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It depends entirely on your state. Raffles are regulated as gambling at state level. A few states prohibit them, most require a license or registration before any ticket is sold, and the rules differ sharply between them.

Do we need a license?

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In most states, yes, and it must usually be in place before you sell the first ticket. Check your state's requirements and allow time, because some licenses take weeks.

Can we sell raffle tickets online?

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In some states and not others. Selling across state lines is restricted in many places, which is the single biggest constraint on online raffle sales. Confirm your state's position first.

Are raffle tickets tax deductible?

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No. The IRS does not treat a raffle ticket purchase as a charitable contribution, because the purchaser receives a chance to win in return. This catches supporters out every year and is worth stating on your ticket page.

When do we have to report a prize to the IRS?

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Reporting on Form W-2G is triggered when the prize, less the wager, is $600 or more and is at least 300 times the wager.

When does withholding apply?

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Above $5,000. The applicable rate has changed over time and older IRS material is out of date, so confirm the current figure with the IRS or your CPA before your draw.

What about a noncash prize like a car?

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Noncash prizes carry their own treatment, where the winner pays the organization the withholding on the prize's fair market value, and the organization can choose to pay it on the winner's behalf at a grossed up rate. Take advice before offering a large noncash prize.

Does GalaBid handle the tax side?

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No. The platform provides ticket and winner records. It does not calculate, withhold or file anything on your behalf, and it does not obtain licenses.

How are raffle winners notified?

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Once the raffle is drawn the winner will be notified instantly via email or SMS. The message will state with item code (number) they have one and the winning ticket number, there will also be a link included which takes them to the raffle item description.

How many raffle prizes can I have?

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There is no limit to the number of prizes you can make available to your participants, make sure to set the number of prizes you have within the one raffle item when editing and creating the raffle item. For example set Prizes Available to 3 and then in the same item description list Prize 1 xxx, Prize 2 xxx, Prize 3 xxx

Are raffle tickets tax deductible?

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No, raffle ticket purchases are not tax-deductable, only charitable donations are.

Does the purchaser receive a receipt or invoice

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Yes, once payment is made for their raffle ticket they will be emailed a payment receipt from your Stripe account. If you would like to also issue an invoice from GalaBid please set this in Setup > Tax/Invoicing and you will need to 'Close the Auction' to send them out.

Can we sell tickets in the room as well as online?

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Yes. Volunteers log in and record cash and card sales taken in person, so tickets sold in the room go into the same draw as tickets sold online.

How do the ticket packages work?

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Set multiple price points, so five tickets cost less per ticket than one. It is the simplest way to lift average spend.

Can we run the raffle alongside the auction?

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Yes, in the same campaign. Supporters buy tickets while browsing auction items and settle everything in one checkout.

How does the draw work?

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On screen with your branding, showing each winner's name and ticket number as a pop up. Bulk draw runs several at once where you have multiple prizes.

Where do the funds go?

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Into your organization's own Stripe account, on Stripe's payout schedule.

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You can create a raffle within a couple of minutes, if you have a Stripe account already. Setting up a Stripe account takes on average 10 additional minutes if you have all required information on hand. Some clients take a few days to have their Stripe account verified so this is the first recommended step to setting up a raffle.