To hold a raffle, you sell people tickets, then have a drawing. One or more ticket-holders win prizes. 

PROS

• The potential return is high.
• If you can get a corporation to sponsor your raffle, you can offer a fine prize with no cost to your organization.

CONS

• Raffles may be illegal in your state.
• You must register with every state in which you solicit funds. The cost in time and filing fees may make the 
  project unfeasible.
• There are many laws, IRS regulations, postal rules, and accounting hoops to go through.
• Recordkeeping is complicated and difficult.
• You face potential lawsuits if you don't meet your obligation to provide the prizes you advertise.

TIPS TO REMEMBER

• Do a cost analysis first to be sure you will exceed your break-even point by a comfortable margin.
• Consult with an attorney and accountant before going ahead, and have them on hand throughout the project. Their professional opinions will be critical to the specifics that come up.
• The purchase of a raffle ticket is not tax-deductible. You must clearly explain this fact on every announcement of the raffle, including the ticket itself.