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Fundraising raffles are a powerful way for nonprofit organizations to engage their communities and raise money while having some fun. While raffle laws differ by state, charitable raffles are legal in Ohio.
There are, however, some precise regulations to ensure compliance and avoid penalties. This guide explores Ohio's raffle laws, compliance requirements, common pitfalls, and best practices to run a successful, legally sound raffle.
We’ve even created a free checklist for Ohio raffle compliance to download.
The Ohio Revised Code (ORC) Section 2915.092 governs charitable raffles in the state. Qualified organizations can host their events without a formal raffle license as long as raffle proceeds benefit a charitable purpose.
Who can conduct a raffle?
To conduct raffles legally in Ohio, you must meet one of the following criteria as a qualified charitable organization:
Be a 501(c)(3) organization with the internal revenue code (think charitable, educational, or religious nonprofit organizations)
Be a 501(c)(4), 501(c)(6), 501(c)(7), 501(c)(8), 501(c)(10), or 501(c)(19) organization
Be a school district, community school, STEM school, chartered nonpublic school, or a college-preparatory boarding school
Any organization with a 501(c)(4), 501(c)(6), or 501(c)(7) status must make sure that at least 50% of the net proceeds go to a qualified charitable purpose or a government entity from charitable gaming events like raffles.
Compliance requirements for Ohio raffles
Financial reporting and recordkeeping
Ohio has some pretty strict reporting requirements for nonprofit organizations that host raffles. According to Section 2915.10 of the Ohio Revised Code, records must include:
Gross receipts and itemized expenses
List of all raffle prizes awarded (service, merchandise, and cash prizes included)
Net profit distribution details (including recipient names and addresses)
Number of participants and inventory of raffle supplies
Name of the manufacturer of the supplies
These records matter as you prepare for, during, and, most importantly, after your raffle. They must be kept for three years after the event. Records must be kept at the organization’s principal place of business or headquarters in Ohio,, and the Ohio Attorney General must be notified of the location where they are stored.
Age restrictions
Selling tickets: Anyone under 18 may sell raffle tickets as long as they are not present at the raffle site.
Purchasing tickets: Minors can legally purchase raffle tickets in Ohio.
Use of profits
You’ll need to deposit gross profits from each raffle into a dedicated checking account used exclusively for the raffle. Payments for expenses and net profit distributions can only be made by checks or electronic fund transfers from this account.
501(c)(3) organizations: May retain 100% of the net proceeds.
Other nonprofit organizations: Must allocate at least 50% of the net profit to a qualified charitable purpose.
Good to know: Only prizes paid out may be deducted as expenses. Other costs (rent, equipment, supplies, etc.) must be paid using other sources of funds.
Event and location requirements
Raffles can be held at various venues, including businesses, private homes, or public spaces, as long as a charitable organization is hosting. The raffle must also comply with all other Ohio charitable gaming laws we lay out here.
Audits
The Attorney General may adopt rules regarding accounting, recordkeeping, and reporting and may at any time:
Investigate charitable organizations, distributors, and manufacturers
Examine accounts and records
Conduct audits, inspections, and observations of raffles and related premise
That’s why it’s best to keep things organized and accessible. An online raffle software or donor management system like Zeffy can help you do this easily (and it’s 100% free!)
Imagine your nonprofit hosts an annual holiday raffle where you raise $15,000 and celebrate a successful event. Fast forward six months, and the Ohio Attorney General’s office requests an audit of your records. Turns out, no one kept a detailed record of ticket sales, winners, or expenses.
Ohio law (ORC 2915.10) mandates that all gross receipts, expenses, prize winners (especially those receiving $600+ in raffle prizes), and net profit distributions be documented and kept for three years. Without these records, your organization risks penalties, fines, and potential loss of raffle privileges.
2. Mixing raffle money with general funds
Imaginehosting a spring raffle, selling $10,000 worth of tickets. To simplify things, your treasurer deposits money into the organization’s general account, assuming it’ll be easy to track later. A few months later, an internal audit revealed that some funds were inadvertently used for unrelated operating expenses.
This can be a massive risk because Ohio requires that all raffle proceeds be deposited into a separate checking account devoted exclusively to the raffle. Payments for expenses (even in small amounts) must be made via check or electronic fund transfers from that account.
3. Underage ticket sales
Imagine enthusiastic high school volunteers helping sell raffle tickets at your annual gala. You would be glad to receive the help. Unbeknownst to the organizers, several minors purchased tickets during the event to support their friends.
While Ohio law allows minors to purchase tickets, they cannot be present at the raffle drawing site. Violating age-related provisions could put your raffle at risk of being deemed illegal, leading to fines or reputational damage.
4. Exceeding prize value limits
Imagine you organize a mega raffle with a grand prize valued at $150,000. However, Ohio law prohibits offering prizes of over $100,000 in a single raffle drawing or an aggregate of $500,000 annually without additional permits.
Even if you do everything else right, exceeding these limits may invalidate your raffle and result in penalties or disqualification from future events.
5. Unreported online sales and non-physical drawings
Imagine you broaden your raffle by selling tickets online to increase participation. The event is a hit, and you opt for an online randomizer tool to choose the winner without realizing that Ohio law requires a physical drawing from a tangible receptacle.
While online sales are allowed, the final drawing has to be conducted physically or the raffle may be considered invalid.
3 pro tips for successful raffle management in Ohio
Now that we’re clear on what to avoid, let’s talk about how to manage your raffle and make your fundraiser an event to remember.
1. Set clear goals and rules
Before you even think about selling raffle tickets, take some time to get crystal clear on what success looks like for your raffle.
You might ask yourself:
Are you raising money for a specific program?
How are you covering operational costs?
Are you funding a community project?
How will you promote your raffle?
Where will your physical location drawing take place?
Will you incorporate in-person or online raffle ticket sales?
Having a well-defined goal will guide your decisions and make it easier to communicate the purpose of the raffle to your audience. Set a measurable goal: "We’re aiming to raise $10,000 to fund new equipment for our after-school program.”
You’ll also want to clearly outline how many tickets can be purchased, age restrictions, and payment options. Ensure these rules are displayed on your website and printed on the tickets.
Bonus tip: Create a FAQ section on your website to address common questions about ticket purchases, eligibility, and prize claims.
2. Promote your raffle strategically
A well-run raffle needs visibility to succeed. Relying solely on word-of-mouth won’t cut it so it’s a great idea to lean into strategic promotion to maximize your reach and increase ticket sales.
A few ways to attract participants and raise more include:
Leveraging social media: Post behind-the-scenes content showing the impact your nonprofit makes. Use countdowns, testimonials, and videos to build excitement. Consider creating an event page on Facebook to invite people and remind them about key dates.
Using email marketing: Send targeted emails to your donor base with updates, success stories, and clear calls to action. Include a direct link to purchase tickets.
Tapping into community partnerships: Ask local schools, community centers, and other nonprofit organizations to share your raffle information in their newsletters or social media channels.
Bonus tip: Consider running a referral program where supporters who sell the most tickets receive a small incentive or recognition at the event.
Ohio’s raffle laws require strict financial tracking to avoid penalties and maintain nonprofit status. Mismanagement of funds can undermine trust and jeopardize future fundraising efforts.
Here are a few ways to stay accountable before your raffle begins:
Open a dedicated raffle account: Avoid mixing raffle proceeds with your general funds. Use a separate account to simplify reporting and ensure all transactions are traceable.
Utilize digital payment platforms: Consider platforms like Zeffy for secure, seamless payments. If you’re selling tickets online, ensure the platform generates digital receipts for buyer records.
Track ticket sales diligently: Maintain a real-time log of all tickets sold, amounts collected, and any outstanding payments. Assign a trusted volunteer or staff member to oversee financial reporting.
Bonus tip: Schedule regular check-ins with your treasurer or financial team to review records and ensure compliance with Ohio’s reporting requirements.
Get inspired with this successful Ohio raffle example
Therapeutic Riding Institute (TRI) launched its bourbon raffle with an inspiring balance of online convenience and checking the boxes of Ohio legal compliance. The organization leaned into Zeffy’s 100% free fundraising platform to maximize proceeds, knowing they could skip unnecessary transaction or platform fees that other solutions require.
What to take away for your raffle:
Leveraging online ticket sales through Zeffy: TRI could quickly sell tickets online, ensuring that every dollar went toward their mission and automatically tracking sales with simple reporting.
Maintained a legal physical drawing: Although tickets are sold online, TRI follows Ohio law by conducting the final drawing from a physical receptacle during their marked live event.
Transparency and impact: TRI emphasizes that all proceeds benefit their community programs, building trust with participants and helping them visualize their impact.
Multiple ticket options: The online form features a single ticket or bundle option for supporters to increase their chances of winning, with the addition of an optional donation.
It is legal to run a 50/50 raffle in Ohio along with all other raffle types. A 50/50 raffle awards a prize equal to half the amount raised and can encourage attendees to purchase more tickets to increase the prize pot.
Big charities such as Ohio State University and Ronald McDonald House Charities of Central Ohio conduct charitable raffles using the 50/50 format to engage the community and increase funding for important causes.
A raffle is not considered gambling in Ohio. It is legal for qualified organizations, including nonprofits, and is governed by a separate entity from gambling activities. You do not need a raffle permit to host this type of fundraising event as long as you are recognized by the Internal Revenue Service as a 501c organization.
Gambling includes activities like state lotteries, horse races, and casinos, governed by the Ohio Lottery Commission. Depending on state raffle laws across the US, gambling and raffles may share legislation or have separate laws.
A 50/50 raffle is not considered gambling in Ohio. All raffles are legal in Ohio and governed by Attorney General Dave Yost's Charitable Law Section.
Raffles count as donations regarding the money earned and how a nonprofit can use it. In Ohio, charitable organizations can receive 100% of their earnings from a raffle to contribute to fundraising goals.
In terms of federal income taxation, money spent on raffle tickets or participating in a raffle is not exempt federal income like a standard donation. Automate donation tax receipts and stay compliant with Zeffy’s 100% free platform
The difference between a raffle and a drawing is that there are different entry requirements. A drawing usually doesn't require a purchase to gain entries, as a raffle does through ticket sales.
Nonprofits can choose whether or not to host a raffle or a drawing, knowing both are legal activities in Ohio.
You can raffle alcohol in Ohio with a new law that regulates this type of prize.
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