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Updated Texas Raffle Guidelines

Nonprofit special events and raffles often go hand in hand. Donors and volunteers frequently encourage having a raffle be part of your fundraising efforts.

Did you know there are guidelines in Texas on who can hold a raffle and how many per year can be held?

Raffle Definition

A raffle is defined as the award of one or more prizes by chance at a single occasion among a single pool or group of persons who have paid or promised a thing of value for a ticket that represents a chance to win a prize.

Who Can Hold a Raffle?

A nonprofit organization that:

  • has existed at least 3 preceding years.

  • is an IRS-classified 501(c) organization.

  • doesn’t distribute any of its income to members, officers or governing body.

  • doesn’t substantially lobby to influence legislation.

  • doesn’t participate in any political campaign.

Individuals and for-profit businesses are not permitted to hold raffles in Texas.

What Can be Raffled?

  • Cash prizes are strictly prohibited.

  • US Savings bonds are allowed.

  • Gift cards are allowed.

  • Up to $75,000 value for purchased prizes

  • Up to $250,000 value for a purchased residential dwelling.

  • There is no limit on the value of donated prizes.

How Many Raffles Per Year?

New guidelines allow for up to four raffles per year.

Want to learn more? Click HERE for my updated Raffle Rules for the Road.


Michelle Crim, CFRE

Dynamic Development Strategies can help. We offer coaching and fundraising services for our nonprofit clients. We specialize in startup and smaller nonprofits because we understand your challenges. Please contact us for more information.

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