PTA raffle rules
Updated
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Short answer: Raffles are regulated by state law, so whether your PTA, PTO or booster club can hold one depends on your state. Check with your state's charity office or attorney general before you sell a single ticket, and ask your school district whether it has rules of its own. Being tax-exempt with the IRS doesn't by itself make a raffle legal.
| Check | Who to ask |
|---|---|
| Is a permit, license or registration needed? | Your state’s charity office or attorney general |
| Does the school allow raffles on its property? | Your principal or district office |
| Are donated prizes covered if they’re lost or damaged? | Your insurer |
| How will ticket money be counted and deposited? | Your bylaws, standing rules and board |
Can booster clubs do raffles?
The same answer applies to a booster club, a school PTO and a PTA: it depends on your state, and the state decides which groups may hold a raffle and how. Don't assume a rule you've heard from another state applies to yours. Your state's charity office can tell you; NASCO's directory of state charity offices lists every state's.
PTA units can also ask their state PTA, which may have its own guidance for raffles and other games of chance.
PTA raffle license: what to ask for
States use different words: permit, license or registration. When you call or check your state's site, ask:
- Does our group need to register or get a permit, and when?
- Is there a fee, and does it renew every year?
- Is there a report to file after the raffle?
- Are there limits on prizes, ticket sales or selling online?
Write the answers down and add any permit to your yearly registration check, next to insurance and charity registration. See does a PTA or PTO need insurance? for that list.
A state example: California
California shows how detailed the rules can be. The California Attorney General requires eligible groups to register before they sell any tickets, renew every year and file a report afterwards. An IRS exemption alone doesn't qualify a group, and 90% of ticket receipts must go to charitable purposes. Other states work differently, so use this only as an example of the questions to ask.
When the answer is unclear
Handling raffle money
Treat raffle money like any other fundraiser:
- Two people count the cash at the event, and both sign the count sheet.
- Deposit it the same day if you can, into the group's account. Never into a personal account, even for one night.
- Record ticket sales as money raised, and any starting cash float as a re-deposit, so the raffle doesn't look bigger than it was.
- Thank the people and businesses who donated prizes. A single donation of $250 or more needs a written acknowledgment.
Questions people ask
Can we sell raffle tickets online?
Ask your state’s charity office before you do. Rules on selling online differ from state to state.
Is buying a raffle ticket a tax-deductible donation?
Don’t tell buyers it is until you’ve asked a CPA. A ticket buys a chance at a prize, which isn’t the same as a plain gift.
Do we need insurance for raffle prizes?
Property coverage can protect things you hold, including donated auction or raffle prizes. Check your policy before you collect them.
Next step: thank your prize donors properly with the PTA donation receipt template.