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Verdict: Georgia nonprofits can legally run raffles, but only with a county sheriff's license, documented nonprofit membership for all operators, and strict quarterly reporting — skip any step and you're looking at a misdemeanor charge.
What works: Registering with your county sheriff early, keeping a CPA-signed paper trail for every raffle, and using a free platform like Zeffy to simplify ticket sales and reporting.
What doesn't: Hiring outside promoters, selling tickets online, or assuming one county's rules apply statewide — Georgia enforces raffle law at the county level.
Best for: Georgia nonprofits, churches, schools, and civic organizations planning fundraising raffles.
Worth considering if: You're unsure whether your organization qualifies or you're planning a multi-county raffle event.
Hosting a raffle in Georgia as a nonprofit organization is legal, but only if you follow a highly specific list of rules. Georgia Code places restrictions and regulations on raffles to ensure compliance with the law. Whether you're aiming to boost fundraising efforts or simply want to stay within legal boundaries, we'll help you learn the ins and outs of Georgia's raffle laws.
Are raffles legal in Georgia?
Georgia Code Section 16-12-22.1 defines a raffle as a scheme or event in which people pay or are promised consideration for a chance to win a prize. The state also recognizes door prizes and activities that award something in exchange for the cost of admission.
Enforcing Georgia's raffle laws gets more specific for each tax-exempt organization by county, so we always recommend you take a look to remain fully compliant. Here's a helpful map from the Georgia Department of Transportation.
Georgia Code 16-12-22.1: The full statute text with plain-English annotations
Most guides summarize Georgia's raffle law. But to truly understand your compliance obligations, you need to read the actual statute. Below is the verbatim text of Georgia Code 16-12-22.1, the law that governs nonprofit raffle operations in Georgia, with plain-English annotations explaining what each provision means for your organization.
16-12-22.1(a) — Who can legally hold a raffle
Statute text:
"Nonprofit, tax-exempt organizations shall be authorized to conduct raffles provided that no person other than a bona fide member of the organization takes any part in the management or operation of the raffle and provided further that no part of the net proceeds of a raffle shall inure to the benefit of any individual."
What this means in practice: Only genuine members of your nonprofit can run the raffle. You cannot hire outside promoters, contractors, or professional raffle operators to manage the event. Every volunteer pulling tickets, handling cash, and managing prize fulfillment must be a documented member of your organization. Additionally, all net proceeds must go to your nonprofit's mission. Paying staff a percentage of raffle revenue as a bonus, for example, would violate this provision.
16-12-22.1(b) — The registration requirement
Statute text:
"Each nonprofit, tax-exempt organization desiring to conduct a raffle shall file an application with the sheriff of the county in which the organization is located, which application shall be signed by the chief officer of the organization."
What this means in practice: You must register with your county sheriff before selling any tickets — not after the event, not on the day of the raffle. The application must be signed by your organization's top officer (typically your Executive Director or Board President). Operating without this registration isn't a gray area. It makes your raffle illegal under Georgia law regardless of how charitable your cause is.
16-12-22.1(c) — Record-keeping and reporting
Statute text:
"Each nonprofit, tax-exempt organization conducting a raffle shall maintain records of its gross receipts, expenses, and net proceeds for each raffle. Quarterly reports summarizing the information required to be maintained… shall be filed with the sheriff."
What this means in practice: You need a paper trail for every raffle — gross ticket sales, all expenses (printing, prizes, venue), and the final net proceeds. These records aren't just for internal use. You must file quarterly reports with the sheriff's office. If you run a large event like a gala raffle in March, that transaction must appear in your Q1 quarterly report. Build this documentation habit from your first ticket sale.
16-12-22.1(d) — Penalties for violations
Statute text:
"Any nonprofit, tax-exempt organization which violates any provision of this Code section shall be guilty of a misdemeanor."
What this means in practice: Noncompliance isn't just an administrative problem — it's a criminal matter. A misdemeanor conviction can jeopardize your nonprofit's standing, damage donor trust, and put your leadership personally at risk. Georgia courts have prosecuted violations even when organizers claimed ignorance of the law.
Important: Georgia statutes are amended periodically. Always verify the current version of 16-12-22.1 through the Official Code of Georgia Annotated (O.C.G.A.) or consult a Georgia-licensed attorney before planning your raffle.
Can individuals or for-profit businesses hold raffles in Georgia?
Georgia's raffle law is written exclusively for nonprofit, tax-exempt organizations. If you're an individual, a for-profit business, or an unincorporated group, you cannot legally conduct a raffle in Georgia.
Under Georgia Code 16-12-22, operating a raffle outside the nonprofit exemption constitutes commercial gambling. That's a felony charge carrying up to five years in prison, a fine of up to $20,000, or both. The nonprofit exemption under 16-12-22.1 is the only legal pathway for conducting a raffle in the state.
For-profit companies also cannot partner with nonprofits as a workaround. 16-12-22.1 explicitly prohibits individuals, firms, associations, or corporations from taking part in the management or operation of a nonprofit raffle — even in a consulting capacity. A marketing agency cannot manage ticket sales for a charity event. A corporation cannot sponsor prizes in exchange for branding on raffle materials. If your nonprofit is approached by a for-profit entity wanting to "help run" your raffle, that arrangement puts your license and your organization's standing at serious legal risk.
If you're an individual who wants to support a raffle, the only compliant path is to become a bona fide member of the nonprofit running the event before participating in its operations.
How to get a raffle license in Georgia
Do you need a license for a raffle?
Any bona fide nonprofit organizations or entities that want to run a raffle in Georgia must obtain a permit from its local sheriff's office. There is an annual fee for each license that will be due by the entity performing a raffle.
See an example of Fulton County Sheriff's Office raffle license instructions here.
There are two types of raffle licenses in Georgia:
Standard raffle license: This license is best for an organization that will hold four or more raffles in a single year.
Special limited raffle license: This license is best for an organization that will hold three or fewer raffles in a single year as long as the raffle lasts 30 days at maximum.
Georgia raffle license requirements (based on local sheriff's office)
Your local sheriff's office determines an annual application and license fee of up to $100.
A minimum of 24 months in operation for any tax-exempt organizations.
A determination letter from the Internal Revenue Code (IRS) certifying nonprofit organizations qualified are tax-exempt.
A copy of the lease or rental agreement for the raffle location (if applicable).
A statement of conviction(s) for criminal offenses for all individuals on the application.
Steps to obtain a raffle license for bona fide nonprofit organizations
1. Prepare documentation:
Names and addresses of officers and directors
Names and addresses of individuals managing, advertising, or promoting the raffle
Internal Revenue Code tax-exempt certification letter
Georgia Department of Revenue exemption (or supporting documents like Form 990)
Location details of where the raffle will be conducted
1. Apply to your county's sheriff's office.
2. Enclose an application fee if you plan to host more than four raffles (municipality dependent).
Georgia county sheriff raffle license directory
Because Georgia enforces raffle law at the county level, your first stop is always your county sheriff's office. Licensing requirements, fees, and forms vary by county. Below are direct links to raffle license information for major Georgia counties. If your county isn't listed, search "[your county name] Sheriff's Office raffle license Georgia" to find your local page.
Not every county posts its raffle license application online. Call your county sheriff's office directly if you don't find a dedicated raffle page. They'll tell you the current fee, required documents, and submission deadline before your event.
Important Georgia raffle laws for nonprofits
The following raffle laws are set forth by Georgia Code for all organizations that obtain a legal raffle license.
Raffle eligibility
Any nonprofit, tax-exempt organization, church, school, civic organization, and related support group can run a raffle in Georgia.
For individuals, firms, associations, or corporations, partnering or entering into a contract (even for consulting) with a nonprofit for a raffle is illegal. For instance, a marketing firm cannot manage the raffle operations for a local charity, nor can a corporation offer prizes in exchange for branding on raffle tickets.
Eligible organizations are prohibited from lending their name or identity to an ineligible entity to operate or advertise a raffle.
Raffle location and operations
Raffles can only be located on the following premises:
Any premises that the licensed organization owns
Any premises that the licensed organization has a lease or rental agreement
Any premises used regularly for operations outside of the raffle
If an organization wants to host a raffle in more than one Georgia county, it may do so without acquiring multiple licenses. In this case, only a license from the county where the organization is headquartered is necessary.
For example, a statewide charity with headquarters in Atlanta can hold raffles in both Atlanta and Savannah under one license. A raffle license has to be visible at the location where the raffle takes place.
Licensing and violations
Operating a raffle without a license, with an expired license, or not complying with requirements results in:
Violation of Georgia law and subject to prosecution
Violations subject to the office of the county the raffle took place in
Felony with incarceration of up to 5 years, a fine of up to $10,000, or both
Important dates regarding raffle licenses:
December 31st at midnight: Raffle licenses given that year will expire.
January 1st: Raffle license renewals are due to continue operating legally.
April 15th: Any entity performing a raffle must file a report with their local sheriff's office to disclose receipts and expenditures for raffles that occurred in the previous year.
Raffle participation and support
Anyone under 18 cannot participate in a raffle unless an adult accompanies them. Any person violating this rule will jeopardize the organization's standing.
There are also participation restrictions for anyone who is a member of more than one organization that hosts raffles. They can only participate or work at raffles run by two organizations in which they are members.
For instance, a volunteer who belongs to both a local veterans' association and a charity golf club can assist in raffles for those two groups but not a third. These individuals can also only accept $30 per day for assisting in raffle operations across all organizations they support.
Raffle reporting requirements
All organizations hosting raffles are required to submit thorough reporting following their event. A certified public accountant must prepare and sign these reports, which are considered public records subject to public inspection.
This might look like any civic organization like a tax-exempt church flagging their raffle reporting requirements to a CPA or accounting team ahead of time, to ensure that after the raffle everything is in one place and easily accessible.
Such a report should include the following information:
An itemized list of gross receipts for each raffle hosted
An itemized list of expenses or any expenditures relating to the tax-exempt organization
A lease or rental agreement (or multiple if hosting more than one raffle)
The name(s) of anyone whom expenses were paid and relevant receipts
A list of all prizes awarded and the name and address of winners for any prize with a value over $50.00
An itemized list of anyone who received proceeds from a raffle other than the licensee
A record of the number of participants in all raffles conducted
Before you sell a single ticket, make sure you understand every key rule at a glance. This table summarizes the core requirements under Georgia Code 16-12-22.1 so you can check your compliance status quickly.
Rule Category
Requirement
Code Section
Penalty for Violation
Who can hold a raffle
Nonprofit, tax-exempt organizations only (churches, schools, civic orgs)
16-12-22.1(a)
Misdemeanor conviction
Operator eligibility
Only bona fide members of the nonprofit may manage or operate the raffle
16-12-22.1(a)
Misdemeanor conviction
License requirement
Must obtain a raffle license from your county sheriff before selling tickets
16-12-22.1(b)
Commercial gambling felony — up to 5 years, up to $20,000 fine
License types
Standard (4+ raffles/year) or Special Limited (3 or fewer, max 30 days each)
16-12-22.1(b)
N/A (type mismatch may void license)
License fee
Up to $100 annually (set by local sheriff's office)
16-12-22.1(b)
Application rejected
Minimum operating history
24 months in operation as a tax-exempt organization
16-12-22.1(b)
Application rejected
Proceeds
Net proceeds must go entirely to the nonprofit's mission — no individual benefit
16-12-22.1(a)
Misdemeanor conviction
Location
Must be on premises owned, leased, or regularly used by the organization
16-12-22.1
License violation
Multi-county events
One license (from org's home county) covers raffles in multiple Georgia counties
16-12-22.1
N/A if home county license is held
License display
License must be visible at the raffle location
16-12-22.1
License violation
Age restriction
Participants under 18 must be accompanied by an adult
16-12-22.1
Jeopardizes organizational standing
Volunteer compensation
Maximum $30/day per person assisting across all organizations
16-12-22.1
License violation
Record-keeping
Track gross receipts, expenses, and net proceeds for every raffle
16-12-22.1(c)
Misdemeanor conviction
Quarterly reporting
File quarterly reports with your county sheriff
16-12-22.1(c)
Misdemeanor conviction
Annual report deadline
April 15th each year for prior-year raffle activity
16-12-22.1(c)
License violation
CPA requirement
Reports must be prepared and signed by a certified public accountant
16-12-22.1(c)
Report invalid
Prize reporting
Must list all winners of prizes valued over $50, including names and addresses
16-12-22.1(c)
Reporting violation
License expiration
All licenses expire December 31st; renewals due January 1st
16-12-22.1(b)
Raffle becomes illegal mid-year
For-profit involvement
For-profit entities cannot partner with, contract with, or consult for a nonprofit raffle
16-12-22.1(a)
Misdemeanor conviction
Online raffles
Not permitted under current Georgia law; raffle must occur on physical premises
16-12-22.1
License violation
Georgia raffle tax implications for nonprofits and winners
Winning a raffle prize feels great — until tax season arrives. Both your nonprofit and your winners have potential IRS obligations depending on the prize value.
Tax obligations for raffle winners
Raffle prizes are considered ordinary income by the IRS. Winners must report the fair market value of any prize they receive on their federal income tax return, regardless of whether they receive a Form W-2G from your organization.
The IRS requires your nonprofit to issue a Form W-2G to any winner who receives a prize worth more than $600 and whose prize value is at least 300 times the ticket price. Keep this threshold in mind when structuring your prize tiers. A $25 ticket with a $600 prize triggers reporting. A $25 ticket with a $400 prize does not.
If a cash prize exceeds $5,000 after subtracting the ticket cost, your nonprofit may be required to withhold 24% federal backup withholding before paying the winner. This means you'd pay the winner their prize minus the withheld amount, then remit the withheld funds to the IRS. For non-cash prizes above this threshold, your organization and the winner need to work out the withholding arrangement in advance — often by having the winner pay the withholding amount to the organization before receiving the prize.
Tax obligations for your nonprofit
Your nonprofit's tax-exempt status doesn't eliminate all raffle-related tax responsibilities. Raffle proceeds are generally treated as unrelated business income for federal tax purposes unless the raffle is run entirely by volunteers and not regularly carried on. Most Georgia nonprofit raffles qualify for the volunteer exception, but it's worth confirming with your CPA before filing.
Your organization must keep detailed records of all W-2G forms issued, all withholding paid to the IRS, and all prizes distributed. These records support both your quarterly sheriff's office reports and any IRS inquiries. If your organization runs multiple raffles per year, consider building a simple prize-tracking spreadsheet from the start of each event. Always consult a qualified CPA or tax advisor for guidance specific to your organization's situation, as tax obligations can vary based on your nonprofit's structure and activities.
Case study: GCAA Cruise Raffle
The Georgia Community Action Association (GCAA) is dedicated to eradicating the causes and conditions of poverty across the state. To support this mission, GCAA hosted a high-value prize raffle where participants could purchase a raffle ticket for $20 and be entered to win a grand prize of a 4-day, 3-night Bahamian getaway for two on Royal Caribbean.
They creatively announced the winner during their 1st Annual GA Community Action 5K Walk/Run to boost engagement and continue fundraising momentum. All proceeds went directly toward supporting Georgia's Community Action Network.
What makes this raffle successful
Free and transparent platform: GCAA hosted its raffle on Zeffy, ensuring 100% of ticket sales went toward the mission.
Optional donation: An optional donation on the raffle form made it easy for supporters to support the cause even further, increasing fundraising totals.
Affordable and accessible participation: At $20 per ticket, the raffle was simple to join, with no need to be present to win.
Legal compliance and transparency: GCAA included their raffle license number and clear eligibility rules (18+ and two weeks to claim the prize) to meet Georgia raffle rules.
Case study: Exclusively Wives of Georgia gift basket raffle
Exclusively Wives of Georgia hosted a special fundraising raffle to support its mission of creating a brighter, more compassionate world. This gift basket raffle allowed participants to win big and connect as a community at the in-person drawing for a ticket cost of $25.
What makes this raffle successful
Emotional connection: Strong imagery and messaging inspired compassion and community support.
Event tie-in: Hosting the drawing during the live event boosts engagement and attendance.
Engaging raffle page: Beautiful visuals helped to communicate key information to participants about the raffle while keeping the form short and sweet.
Free raffle platform: The nonprofit hosted the raffle on Zeffy, so every penny collected goes directly toward the community of women they serve.
Common raffle challenges & best practices
So, how do you ensure your raffle is successful and fully compliant with Georgia raffle law and guidelines? We've summed up a few challenges to avoid and best practices to remember.
Common challenges
Navigating Georgia's raffle laws: Nonprofits must obtain the right license and follow strict rules, which can be daunting for first-timers.
Boosting ticket sales: Generating excitement and driving sales is tough, especially with competing events. A solid marketing strategy is key.
Handling prize fulfillment: Timely, rule-compliant prize delivery is essential to avoid participant dissatisfaction and protect your reputation.
Best practices
Secure the right license: Choose between a Standard Raffle License or a Special Limited Raffle License. Starting early avoids delays and ensures compliance with Georgia law.
Track everything: Keep detailed records of receipts, expenses, and prize winners (especially for prizes over $50). A fundraising platform can simplify reporting and keep you compliant.
Boost engagement: Partner with local influencers or businesses, offer unique prizes, and host fun events to drive participation and support.
Raffles are legal in Georgia for any nonprofit, tax-exempt organizations, churches, schools, civic organizations, and related support groups. Individuals and for-profit businesses cannot legally conduct raffles in Georgia.
No. Georgia Code 16-12-22.1 limits raffle authority exclusively to nonprofit, tax-exempt organizations. Individuals or for-profit entities operating a raffle can be charged with commercial gambling under 16-12-22, which carries felony penalties of up to five years in prison and fines up to $20,000.
As of 2024, nonprofit organizations qualified to host a raffle cannot host online raffles in Georgia. The raffle must take place on property owned, leased, or regularly used by the organization. While you can't use Zeffy's free raffle solution to sell tickets online in Georgia, you can use it to simplify reporting requirements.
The legal difference is the criteria for entering for a chance to win. Raffles require payment for entries or a promise of a chance to win, while drawings do not. Georgia law regulates the operations of all lotteries, raffles, drawings, sweepstakes, and games of chance for all nonprofit organizations or any related support groups qualified to host them.
Raffles do not count as gambling when conducted with a proper license and do not violate regulations set forth by Georgia Code. If bona fide nonprofit organizations host fundraising raffles without a license, with an expired license, or fail to adhere to requirements, they are considered gambling. The violation is equivalent to illegal gambling and can result in prosecution and a heavy fine.
The law on raffles in Georgia is that anyone who runs one must obtain a raffle license and comply with regulations established in Georgia Code 16-12-22.1. Most bona fide nonprofit organizations qualify. Operating without a license, with an expired license, or not complying with requirements results in criminal penalties under Georgia law.
Yes. The IRS treats raffle prizes as ordinary income. Your nonprofit must issue a Form W-2G for prizes worth more than $600 when the prize is at least 300 times the ticket price. Cash prizes over $5,000 (after subtracting the ticket cost) may require your organization to withhold 24% before paying the winner. Winners should report all prize income on their federal tax return regardless of whether they receive a W-2G.
Potentially, yes. If a cash prize exceeds $5,000 after subtracting the cost of the ticket, your organization is generally required to withhold 24% federal backup withholding before distributing the prize. For non-cash prizes above that threshold, the winner typically pays the withholding amount to your organization before receiving the prize. Consult a CPA familiar with nonprofit tax obligations to confirm your specific requirements.
Look for people who attend related events, follow relevant Facebook groups, or subscribe to aligned newsletters.These aren’t just potential donors—they’re your future advocates.
Look for people who attend related events, follow relevant Facebook groups, or subscribe to aligned newsletters.These aren’t just potential donors—they’re your future advocates.
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