California Raffle Laws Are Stuck in the Past. Let’s Fix That.
California nonprofits are being held back by outdated raffle laws that don’t reflect how people give today. While raffles are legal, organizations cannot process payments online and are limited in how much they can spend on prizes—making them harder to run and less effective as a fundraising tool. Free the Raffle CA is a focused effort to modernize these rules by allowing secure online payments and increasing prize flexibility, so nonprofits can raise more, engage more supporters, and put more dollars toward their mission.
The Problem Isn’t Raffles - It’s the Rules.
A Simple Fix with Meaningful Impact
Our goal is straightforward: modernize California’s raffle law so it works in today’s world. That means allowing nonprofits to accept online payments for raffle tickets and increasing prize flexibility from 10% to 20%. These are practical, responsible changes that remove unnecessary friction and unlock a stronger, more effective fundraising tool for nonprofits across the state. It's time to update California's raffle laws.
The Pain Points of the Current System
While raffles remain a popular and familiar fundraising tool, California’s current regulations limit their effectiveness in real ways. Nonprofits cannot process payments online, forcing them into outdated, manual systems that reduce convenience and participation. The 90/10 rule restricts prize flexibility, making it harder to create compelling offerings that attract donors. These limitations don’t just create inconvenience—they directly impact revenue.
Questions About Raffles and Fundraising?
Can nonprofits sell raffle tickets online in California?
No. Current law requires raffle tickets to be sold in person—online payments, credit cards, and remote transactions are not permitted. The proposed law change would allow online payments within the state of California.
Who is allowed to run a raffle in California?
Only qualified nonprofit organizations that are registered with the state and in good standing can legally conduct raffles. That would remain the same under the proposed change to the law.
What percentage of raffle revenue can currently go toward prizes?
Currently no more than 10% of total gross receipts can be used for prizes. At least 90% must go toward the organization’s charitable purpose. Our proposed change to California's raffle law would raise the percentage to 20% of total gross receipts that can be used for prizes.
Can we currently accept credit cards or digital payments for raffle tickets?
No. Raffle ticket purchases must be made through in-person transactions, which limits the use of modern payment methods. Our proposed change to the law would nonprofits to accept digital online payments for sales of raffle tickets.
Are 50/50 raffles allowed for nonprofits?
Generally, no. Most nonprofits are not permitted to run 50/50 raffles under current California law (with limited exceptions like certain sports-related organizations). We are not proposing any change to this portion of the current law.
Do we need to register before holding a raffle?
Yes. Nonprofits must register annually with the state and follow all reporting requirements, including submitting results after the raffle.
Can we currently promote our raffle online?
Yes—with limits. You can promote the raffle online, but you cannot sell or process ticket purchases through the internet.
Why are these current restrictions a challenge for nonprofits?
They limit fundraising potential by preventing convenient giving, reducing participation, and making raffles harder to manage in a digital-first world. Modern fundraising has shifted to digital giving and it has been proven that removing the digital payment option creates a barrier to donor giving and raffle ticket sales.