How to Run Reverse Raffles for Your Nonprofit

Imagine a fundraiser where the last ticket standing wins, like a game show mixed with a community celebration. Reverse raffles flip the process of traditional draws and build excitement. 

As each raffle ticket gets discarded until one lucky winner emerges victorious, you can count on the engagement and thrill of winning the prize. 

In this article, we’ll learn about reverse raffles, how to organize one, and some best practices for raising more funds for your nonprofit.

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What does our reverse raffles guide include?

What does our reverse raffles guide include?

What is a reverse raffle?

3 considerations before you host a reverse raffle

8 steps to set up your reverse raffle event

6 reverse raffle ideas to boost your fundraiser

Best practices to organize a successful reverse raffle

Case study: How Clinton Wrestling Club raised $19,500 for their reverse raffle using Zeffy

Closing thoughts on reverse raffle fundraisers

FAQs on reverse raffles

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What is a reverse raffle? 

Reverse raffles are also known as Reverse Draws or Last Man Standing raffles. 

Reverse raffle tickets are drawn one by one until the final ticket remains, which wins the grand prize. If there are multiple prizes, tickets are drawn until the number of remaining tickets matches the number of prizes.  

Instead of drawing the winning tickets, the pulled tickets eliminate people until the last standing winner.

Here are different types of raffle events compared to reverse draw.

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3 considerations before you host a reverse raffle  

1. Know the raffle laws in your area 

Raffle laws vary from state to state, and it is crucial to follow the regulations for success. Before planning a reverse raffle, nonprofits should know the state and local rules. 

Some general rules include: 

• Licensing requirements, 
• Limitations on the value of prizes, 
• How much money goes to charity (for nonprofits)
• Record-keeping obligations or reporting requirements 

Most jurisdictions allow nonprofits and charities to host raffles to raise funds for their causes. However, in some states, like Alabama, raffles are considered illegal. 

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2. Nonprofit eligibility 

In the USA and Canada, nonprofits must meet certain requirements to conduct raffles legally. For instance, if your nonprofit has a 501(c)(3) status in the USA or is registered as a charity under Canada's T3010 form, you are eligible for the nonprofit status.

Verify with local authorities to make sure your nonprofit meets all necessary requirements.

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3. Fairness and ethics 

Ensure the fairness of your raffle by following set guidelines. Clearly explain the rules and who can participate to avoid any confusion. Ensure the price of the tickets is reasonable and reflects the perceived value of the prizes. 

Here are a few more ways to ensure fairness and transparency when holding a reverse raffle.

• Consider the target audience when choosing the prizes suitable for them
• Avoid any preferential treatment to a single individual or group
• Use a powerful ticketing platform to keep records of all ticket sales, draws, and winners
• Clearly outline how the winning tickets will get drawn and how winners can claim their prizes
• Protect the privacy and personal information of the participants 

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8 steps to set up your reverse raffle event

1. Choose a location 

Choose a venue that can accommodate the expected number of attendees. 

Ensure the location is easy to reach for most participants and offers the right atmosphere for the event. If you plan to offer food and beverages during the event, partner with local restaurants or eatery joint owners. 

Consider checking if the selected location meets security standards and has necessary facilities such as restrooms and seating arrangements. 

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2. Set your budget and ticket prices

Once you've chosen your venue, estimate the number of attendees and set your budget accordingly. Calculate expenses for venue rental, prizes, catering, decorations, and other costs.   

Consider your fundraising goal and expected ticket sales to set a ticket price. You can cap ticket numbers (for example, selling only 200 tickets) or increase prices when more tickets are sold. 

Decide whether all tickets will be the same price or if prices will increase as the event date nears, and whether to offer group discounts. This will create more excitement about buying tickets early on or buying group tickets. 

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3. Gather your materials 

You'll need presentation materials to display prize items and the winning scoreboard at your reverse raffle event. Make sure to get a raffle drum or box to hold the tickets.  

Prepare materials that show what your nonprofit does and how the event supports your cause. This can be brochures, banners, or slideshows at the venue. 

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4.  Collect your prizes 

Prizes are a key attraction of any raffle. Think about what kind of prizes will excite people and encourage them to buy tickets.  

There are many great prize ideas to maximize raffle ticket sales. Consider a mix of big-ticket items (electronics, vacations) and smaller prizes (gift cards, baskets). 

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5. Plan the event 

Once you have gathered your prizes, it's time to finalize the details of your event. Start by selecting a date and time that will be convenient for your attendees.  

Decide on the format and the theme of the event. For example, outline clear instructions on how you will welcome guests and explain the rules of the reverse raffle. 

Organize the draw to ensure it is the highlight of the event. This will build excitement as the raffle progresses.  

Prepare your closing remarks to express gratitude to attendees, sponsors, and volunteers. 

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6. Buy or create raffle tickets

Once you have sorted the details, it’s time to get the raffle tickets. You can buy pre-printed tickets or use Zeffy’s 100% free platform to design your raffle tickets. Whichever option you choose, make sure each ticket has a unique number to avoid confusion during the draw.

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7. Ask for donations

Seek donations from local businesses, sponsors, and individuals. Explain how it will make the event successful—and what you need, whether it's cash, prizes, or services.

Give recognition during the event and in promotional materials as a thank-you for their support. Clearly outline the benefits they'll receive, such as exposure to attendees and positive community recognition.

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8. Draw tickets

Now, it's time to draw the tickets, either live with a raffle drum or use a number generator for an online raffle event. 

These final tickets are declared winners, and each will receive a prize. Double-check each ticket against the master list to ensure its accuracy. 

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6 reverse raffle ideas to boost your fundraiser 

1. Buy-back option 

Each time they buy back in, you can charge double or triple the initial ticket price.

This option is more beneficial for nonprofits, as it helps them raise additional funds. Participants can get another chance to win, which brings their energy and excitement back into the event. 

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2. Champion tickets 

Try the championship raffle format if you've sold many tickets for your event. 

For example, if you have 100 tickets, draw them in groups of 10. The last ticket drawn from each group goes into the final round. This builds suspense for the last 10 ticket holders, who eagerly await the draw for the main prizes.

3. Staggered prizes 

Distribute prizes at different stages of the event. You can announce staggered prizes all at once or spread them out across different rounds during the event. 

You can name and create different categories of prizes, like runner-up prizes for the final five tickets or prizes for a ticket drawn at 50th place. Such prizes ensure that the event remains lively and engaging from start to finish. 

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4. Money split option 

To add a twist at the end, finalists in the reverse raffle can choose to share the prize money instead of competing for it all.

It adds a strategic element where they can negotiate openly, creating suspense about what they'll decide. 

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5. Halfway prize 

Offer a midway prize for the ticket drawn at the halfway point of the reverse raffle. This will keep the interest alive throughout the event, even if some participants aren't the final winners. 

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6. Mix and match ideas 

Mix and match some ideas to fit your event perfectly. Combine more than one idea, like a reverse raffle and themed dinner or gala, to ensure everyone enjoys the raffle.

Feel free to develop your creative twists for hosting a successful raffle and raise more funds. 

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Best practices to organize a successful reverse raffle

Organizing a reverse raffle opens fundraising opportunities and offers participants a fresh and new experience. Here are some best practices to ensure your event runs smoothly: 

• Break the monotony: To avoid boredom during a lengthy reverse raffle draw, consider hosting it alongside other activities to keep participants engaged. 
• Nonprofit engagement: Use raffles to raise funds and promote your nonprofit. Engage ticket buyers in conversations about your cause to potentially turn them into regular donors. 
• Legal compliance: Check state and local raffle laws to ensure compliance. Each jurisdiction has specific rules that must be followed
• Transparency in the draw: Conduct the draw publicly or via live stream for transparency. Make sure all tickets are mixed well and randomly selected
• Winner announcement: Announce the winning ticket number or name to the audience and make arrangements for how the winner will receive the prize
• Ticket sales strategy: Offer group pricing to encourage larger donations, such as 1 for $5, 3 for $10, or 7 for $20, encouraging participants to buy more tickets 

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Case study: How Clinton Wrestling Club raised $19,500 for their reverse raffle using Zeffy

Clinton Wrestling Club, a nonprofit supporting the Clinton RedWolves Wrestling Club K-12, hosted their 10th Annual Elite Reverse Raffle using Zeffy's 100% free online raffle platform. The event aimed to raise funds for the club's young wrestlers. The reverse raffle offered cash prizes ranging from $500 to $2,000, with tickets priced at $80 each. 

Clinton Wrestling Club raised an impressive $19,500 through the reverse raffle while saving $975 in platform and payment processing fees. By partnering with Zeffy, the club streamlined its ticket sales process and maximized its fundraising potential. Zeffy's 100% free platform allowed the organization to sell tickets online, manage attendees, and process payments without incurring any fees.

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Closing thoughts on reverse raffle fundraisers

Hosting a reverse raffle is one of the best ways of creating an unforgettable experience for the participants. Flip the traditional raffle on its head and plan a reverse raffle to raise funds for your cause. 

Use the above steps and best practices to host a reverse raffle and gather strong support from your community. The key to success lies in following a strategic approach to engage and entertain the participants.

With Zeffy’s 100% free online raffle platform, you can create custom raffle tickets, launch campaign pages, and launch peer-to-peer campaigns to sell tickets. 

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FAQs on reverse raffles