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Amy Passmore
Amy Passmore is a fundraising for nonprofit organizations, clubs, schools and groups. Visit her website,
DIY Fundraising for fundraising tips and techniques.
Holding a raffle for a big ticket item is one of the most effective ways a nonprofit organization can earn a large amount of money. For example, in Southern California a nonprofit service organization raffled off a million dollar house and earned over five hundred thousand dollars in the process. If raffling a million dollar house seems too daunting consider raffling off a luxury car, Harley Davidson motorcycle, or an all terrain vehicle.
If you are thinking of holding any kind of raffle you first need to check with your State Attorney General's office and find out what the laws are regarding raffles in your state. You should also check with your local city government. In some states raffles are considered gambling and if they are allowed in your state you will have to register and follow strict guidelines and reporting procedures. You also need to find out if your organization by-laws allow raffles and decide if a raffle is appropriate for your organization. Some organizations would not consider a raffle an appropriate way to raise funds. In some states school children are not allowed to sell raffle tickets.
When you have a big ticket raffle you can have either one grand prize, such as a luxury car, or have the grand prize and other smaller prizes. The best way to acquire the prizes is, of course, to have them donated. However, your organization can also buy the prizes. You can also have a cash prize as the grand prize. The grand prize winner usually has the option of accepting the prize or the cash equivalent of the prize. The prize winner is always responsible for paying the taxes and any fees associated with accepting the prize. Again, this all has to be within the laws of your state.
Let's look at how much money your organization could raise with a Harley Davidson motorcycle raffle. If you sell 3,000 tickets at $10.00 a piece you will take in $30,000.00. Even if you have to purchase the Harley for $10,000, after your other expenses, such as ticket printing and advertising, you could still earn close to $20,000 for one fundraiser. Right now there is a service organization that I know of that is holding a Harley Davidson raffle and selling 3,000 tickets at $50.00 a piece.
Three thousand raffle tickets are a lot of tickets to sell. Your organization will need to decide how many tickets you think you can sell and for what price. If you thought you could only sell 1, 500 tickets you could raise your ticket price to $20.00 a piece. These are attractive odds to potential ticket buyers which is one of the selling points in raffling big ticket items.
As with any fundraiser there will be overhead costs. You will need to advertise your fundraiser in your community. There will costs to print the tickets. You may have legal and accounting fees and taxes. If you can't get the prizes and incentive prizes donated you will have to pay for them. Many times automobile and motorcycle dealers will let you purchase the vehicle at cost. It can be good publicity for them to do so.
Big ticket raffles are worth considering. The potential of earning a large amount of money for your organization is there.
Has your club or nonprofit organization held a big ticket raffle? Feel free to leave a comment and let us know what you raffled and how much money you raised.
Article by Amy Passmore of DIY Fundraising. Visit www.diyfundraising.com for do-it-yourself fundraising ideas for nonprofit organizations, clubs, schools and groups.
Published by Amy Passmore on October 27, 2005 07:28 PM
