How to Host a Virtual Raffle: A Guide to Successful Online Fundraising

Introduction to Virtual Raffles

When it comes to fundraising, raffles are one of the oldest and most popular forms of generating money for charity there is, and with today's modern technology, it only makes sense to take raffles online. After all, virtual raffles can be fairly easy to organize, reduce administrative work, and breakdown location barriers, allowing for a much broader audience to participate, and more participants means more donation dollars. 

Virtual raffles work on the same premise as traditional raffles, where participants purchase tickets, a draw is held, and a winner is announced; except with a virtual raffle, everything is done online, including sales, promotion, and even the draw itself. No more setting up tables to sell tickets, or manually keeping track of who bought what number... everything is done directly from a tablet, computer, or smartphone. 

Online fundraising platforms are making virtual raffles even easier to organize by handling ticket sales, tracking entries, processing payments, and even picking the winner for you, which reduces human error and increases raffle transparency.

If you would like help organizing an online fundraiser, check out one of the many comprehensive guides we have on our blog here, or contact the team at Paybee. We're an all-in-one fundraising platform that will not only walk you through the process, we'll also manage your charity event from start to finish.

Why Organize a Virtual Raffle? 

If you're looking at setting up a raffle for your charity or non-profit, you may be wondering what the advantages are of doing so virtually rather than in-person. Here are the top four reasons why you should consider taking your event online:

• Increased Accessibility: Online raffles are convenient. By choosing a virtual raffle as opposed to a traditional in-person event, you're opening up your fundraiser to a much larger audience. Buying tickets online can be done from anywhere at any time, as long as an internet connection is available. Tickets can even be purchased throughout your state or even nationwide, as long as you do your homework and follow the proper rules and regulations. 

• Minimized Costs & Maximized Profits: Online raffles save money. First, you're expanding your reach by making your raffle available to more participants, which most likely will increase your sales and, therefore, your revenue.

Second, you're eliminating the need for physical materials, like pre-printed tickets, posters, and, in some cases, an event space where the winner can be announced. All of these things are done virtually, and fewer expenses means more money goes directly to charity.

• Streamlined Operations: Online raffles save time. Traditional raffles often involve a lot of manual work. Tracking entries, manning the ticket booth, and doing the accounting can take up a big chunk of time. 

When opting to hold a virtual raffle, all of these processes become automated, which also means your event becomes more transparent and reliable. Ticket sales are processed in a safe and secure manner, buyer information is kept as a digital record, and the winning ticket number is generated randomly, which ensures the public that the selection process is fair and without bias.

• Boosted Engagement: Online raffles keep people engaged. Normally, raffles involve buying tickets in-person and then simply waiting for the draw date. With virtual raffles, you can introduce interactive elements, like countdown timers and progress updates. Interested buyers can have access to information about how many tickets have been sold and receive instant notification when the winner is about to be drawn so they can watch the results online. 

With raffle platforms, you also have the option of "gamifying" your fundraiser. Providing leaderboards that keep track of who has bought the most tickets introduces a bit of friendly competition, while random draws for smaller prizes along the way get people excited and is a fun way to keep people interested while increasing ticket sales. 

How to Set Up Your Online Raffle 

Once you've decided to organize an online raffle, it's time to get organized and get the ball rolling. Choosing the right platform, setting achievable goals, pricing tickets correctly and having the right prize are all important aspects to consider in when setting up an event of your own. Here's a step-by-step guide to help you through the process.

•  Choose the Right Platform: If you're planning on organizing an online raffle, it's important that you choose the right platform. Tickets should be generated and tracked automatically, winners randomly chosen, and financial transactions processed with ease by trusted and well-known payment processors that make the checkout procedure as easy as possible. 

Ideally, your raffle platform should be easy to use, secure, and include a ticketing system that is efficient and easy to manage. There are quite a few raffle websites out there, many of which deal specifically with charities, so do some research and find the platform that's the right fit for your charity.

• Set Clear Goals: As with any fundraiser, it's important to set clear and realistic goals. The first thing you need to do is decide how much money you want to raise, and factor in any expenses that you may have along the way. Expenses could include things like raffle platform fees, marketing, and prize costs — unless the prizes are donated.

Once you've set your fundraising goal, it's time to create a timeline to keep everything on track. You need to know when your raffle will start, how long you will promote it for, and when it will end.

While one of the things that makes raffles attractive is that they can run for an extended amount of time, it's ideal to keep the start to finish within the 2-4 week range. You want to keep your event short and focused, which maintains a sense of momentum. 

• Choose the Right Prize: Choosing the right prize is one of the most, if not the most, important parts of putting together a successful online raffle. A great prize can bring people in, get them to buy tickets, and keep them engaged.

Look for items that have a broad appeal, like electronics, getaways, gift cards, or even good old-fashioned cash. Your prize should have enough value that it will make people want to buy and the value of the prize will be the key factor in determining your ticket prices. Also, make sure your prize is easy to distribute; no charity wants to spend a chunk of their ticket sales on shipping and handling from one side of the state to the other.

Keep in mind that with donated prizes, every dollar from every ticket goes directly to your cause. Reach out to both local businesses and major retailers in your area and ask if they would be willing to donate a prize in return for promotion and publicity. You may not get a grand prize caliber item, but as they say, you never know until you ask, and offering donated goods as secondary or bonus draw prizes is an added incentive for participants who love having more than one chance to win.

• Set the Right Ticket Price: Once you've decided on your grand prize, you can set the price of your tickets. You need to take into consideration your fundraising goal as well as the value of your prize. Looking at what you have to offer, how much do you think you could reasonably sell tickets for, and how many tickets will you need to sell at that price in order to hit your goal?

While higher-value items usually mean higher-priced tickets, expensive tickets can also mean limited participation and fewer sales. Lower-priced tickets may mean more sales, but may not cover costs, so ticket pricing is all about finding a balance. 

• Supercharge Your Sales: With the proper strategies and incentives, you can significantly increase your ticket sales, and ultimately your revenue. 

One of the best ways to encourage people to buy more tickets is to offer bundles of tickets at discounted prices. You may sell one ticket for $5, but offering 5 tickets for $20 is an attractive option for those looking for a deal and who wish to increase their odds of winning.

Another successful strategy is offering special pricing to those who pick up their tickets at the very beginning or very end. By dropping ticket prices during these periods, you're creating a sense of urgency and make people feel like they're getting a deal. 

Marketing Your Virtual Raffle 

As with any fundraising initiative, it's important to market your event effectively, particularly if your event is completely virtual, and you're looking to tap into participant markets outside your own community. Let's have a look at the two most popular forms of digital advertising: social media marketing and email marketing. 

Social Media Marketing 101

Naturally, your best bet is to promote your online fundraiser through social media platforms, like Facebook, Instagram, TikTok, Threads, etc. By creating eye-catching posts that include both photos and videos, you can make your raffle stand out and create a buzz.

By creating an event on your charity's Facebook page, you can share it with friends, family, and followers, and ask them to re-post the event on your behalf, creating a snowball effect that builds momentum and engages new audiences that may not know about your fundraiser otherwise.

One of the great parts about social media marketing is that many of the platforms are connected (i.e., Facebook, Instagram, and Threads), so it's easy to share your event across multiple platforms with the click of a button. It's also free, although if it's within your budget, you can access their paid advertising feature and reach an even broader audience through their targeted marketing approach.

By posting new content several times a week, and incorporating relevant hashtags that people are already following or searching for (#winbig #raffle #CharityGiveaway, etc.), you can widen your exposure and attract more participants.

Email Marketing: Connect and Convert

While email marketing may not seem as flashy as it's social media counterpart, it's still a highly effective way to engage participants and drive ticket sales.

If you don't already have one, build an email list that includes the addresses of those who have attended your events in the past, or have signed up through your website or social media pages. People who have supported your cause in the past are most likely to do so again in the future.

Be sure to include an attention-grabbing subject line, and keep your message short, clear, and concise. Include high-quality photos of the prizes and let recipients know all the pertinent information, including the what, when and why.

It's also important to follow up your initial email with a couple of "reminder emails" to keep your email audience engaged and encourage ticket sales right up until the deadline. But don't overdo it and bombard your list with constant emails; a simple update email, countdown email, and last chance email should be more than enough.

If you'd like to simplify things and have all your emails automated and managed for you, services like MailChimp and Constant Contact can do all of this for you, and provide detailed reporting and analytics to help you better understand your audience and what you need to focus on to increase your success in the future.

Running Your Virtual Raffle Event 

One of the advantages of hosting an online raffle is increased audience engagement. Ticket buyers can be part of the process from the moment they buy their tickets to the moment the winning numbers are pulled.

While there are some raffle platforms that include online streaming as part of their services, generally, if you want to go live, you're going to need two separate platforms: the raffle platform that you're already using to manage ticketing and payment systems, and a streaming platform that you are going to use for the live event.

Should you choose to go "live" with your raffle draw, you're not only keeping supporters interested, you're also giving yourself an opportunity to engage face-to-face with participants, which makes the event more interactive and gives your charity another opportunity to speak about its cause.

Popular streaming sites like Zoom, Facebook Live, Instagram Live, and YouTube Live are user-friendly and support additional features like live commenting and screen sharing. With websites like Wheel of Names and RandomPicker, all you need to do is enter participants' names or their ticket number into a text box and a winner will be randomly selected.

With traditional raffles, ticket-buyers would have to be physically present to watch the draw, but with streaming platforms, people can tune in on their smartphones from anywhere, watch the drawing take place live, and be notified almost instantly should they have a winning ticket. So, not only does a live stream increase engagement, it increases transparency because ticket buyers can see firsthand that it was handled legitimately and without bias.

Whatever platforms you choose to use, it's vital that you check them out beforehand. Test your audio, video and internet connections beforehand so that you're prepared, but have a backup plan in place should something go wrong at the last minute. You want your raffle to come across as smooth and professional.

Most importantly, should you decide to go live with your raffle drawing, you or your host need to be clear and concise with their words, engaging with their audience, and be able to stick to a schedule and not drag things out.

Legal Considerations for Virtual Raffles

While raffles can be both an effective and efficient way to raise funds for charity, it's important to make sure that you're running your event in compliance with the law. In the U.S., raffles are considered a form of gambling and are subject to federal, state, and even, sometimes, local (city/county) law. While there are various online raffle platforms that can do all the homework for you and make the process a lot easier to navigate, here are some things to consider:

Federal Laws

• The Unlawful Internet Gambling Enforcement Act (UIGEA), prohibits the sale of raffle tickets by credit card or mobile applications like PayPal and Venmo. All ticket sales must be by debit card, bank transfer or done in person.
• The Federal Wire Act makes it illegal to run interstate raffles, so it's best to only sell tickets within the state and not cross state lines.
• Postal Laws prohibit both raffle tickets and promotional materials to be sent through the mail, so be sure to send any kind of correspondence online. 

State Laws

• Some states prohibit raffles entirely, others only make allowances for recognized non profits, so be sure to check state law before you get started.
• Most states require a raffle permit or license with requirements varying depending on the state and whether the organization is a non-profit or for-profit organization.
• Acquiring the proper permit usually involves applying for a a state gaming license, paying a fee, and submitting financial reports after the drawing.
• While most raffles are governed at state level, sometimes local governments have additional rules, which could include additional permits, or venue and advertisement restrictions. 

Should you wish to run the raffle on your own, best practice is to contact your State Gaming Commission or Attorney General's Office and check in with your city or county clerk's office to find out what you need in order to move forward. 

Post-Event Strategies and Donor Engagement 

Your raffle may be over, but the work isn't done yet! Once you've cut the live feed and drawn the winning numbers, it's important to follow-up with your participants, show your appreciation for their support and let them know how much money was raised and how it will be distributed.

If possible, send out as many handwritten thank-you notes as you can to top donors and sponsors. It can be time-consuming, but it's important to add that special touch that lets people know that you genuinely appreciate the contribution they made and look forward to their continued support in the future.

While it's important to thank your sponsors and top contributors, it's just as important to thank each and every ticket buyer. Send out a thank you email to everyone on your mailing list and use your social media platforms to once again thank sponsors publicly. This is also a great time to let your supporters know how much money was raised and how it will be put to good use. 

And, while everyone may not have been a winner, many are curious to see who it was. Ask winners if they mind having their name shared publicly and ask if it's possible to get a photo of them with their prize. Sharing photos of contest winners makes the event feel more real and relatable. It's also great to use these kinds of photos in future fundraising campaigns; everyone loves a winner!

These post-event strategies all boil down to one thing: keeping donors and supporters engaged and feeling appreciated. In doing so you're building long-term relationships and encouraging participants to get involved and donate in the future. Fundraising is nothing without its supporters, so take the time to let them know their contributions count, today, tomorrow and in the months and years to come. 

The Last Spin: Reflecting on Online Raffles

Virtual raffles aren't only a new twist on a traditional form of fundraising, they're also an efficient and engaging way for a charity to raise money for their cause, plus they're fun! They break down geographical barriers which broadens your donor base, and lower your cost since there's no need for printed materials or physical venues. Lower costs and an increased donor base, can mean big revenue for your charity if you play your cards right.

Before you even begin, be sure to "dot all your i's and cross all your t's" when it comes to legalities, and find an online raffle platform that has all the features you're looking for in order to manage your ticket sales. Make sure you have a safe and secure way to process sales and an effective and streamlined marketing platform that incorporates both social media and email marketing.

Once all of those things are in place, and you have all of your prizes in order, use tested and true methods of bumping up ticket sales with attractive pricing strategies and time-sensitive deals. Once your promotion period is over it's time to go live and engage with your audience ,who are waiting to see who the big winners are. 

Wrap things up by showing your participants your appreciation, updating them on the financial results and letting them know how their donations will make a difference. And voilà! You've just organized and completed what was, hopefully, a successful and rewarding virtual raffle. 

So, why wait? Get organized and start planning your online raffle today!

VIRTUAL RAFFLE FAQ's 

• What is a virtual raffle, and how does it work?

A virtual raffle is the same as the traditional raffle that we're all familiar with, except it is conducted entirely online. Ticket sales, marketing, even the drawing itself, everything is done digitally. 

Virtual raffles allow for a broader audience and lower overhead costs. They are also engaging and convenient for donors, as they can buy their tickets anytime and anywhere, and have the option of being involved throughout the promotion period right up to the drawing just by checking their phone or computer. 

• What are some common mistakes to avoid when organizing a virtual raffle?

When it comes to virtual raffles, there are a few mistakes you need to avoid. The biggest mistake to be made is not checking the legal requirements needed to hold a raffle according to your state, and federal, law. Obviously, there are huge ramifications to not having the proper permits and licenses in order, so be sure to check with the proper government authorities before going any further.

Other common mistakes include using a platform that wasn't designed to manage online raffles or is complicated to use, having lackluster prizes, overpriced tickets, or a poor marketing strategy. Avoid these pitfalls, and you should be all set to have a successful event. 

• What should I do after my virtual raffle to maintain donor engagement and support?

The most important thing a virtual raffle organizer can do after the drawing is to show gratitude to those who showed support along the way. This is best done through personalized thank-you messages, either handwritten or via email, and by making appreciation posts through popular social media platforms. 

Not only should your donors feel appreciated, they should also feel like they're being informed. Be sure to let donors know the financial results of your fundraiser and how the money will be allocated.

Showing gratitude and keeping your supporters engaged is the best way to build long-term relationships with your supporters and get them come back to support you, and your cause, in the future. 

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