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You might be tempted to raffle a luxury car. However, the best car to raffle is one that matches the demographics of your audience. For example, if you are an environmental charity, then you might want to buy a hybrid vehicle. If your audience is young, then you might want something sporty. However, if your audience consists mostly of families, then you can buy a minivan or other family-sized car. You can't raffle off a car you don't own. Accordingly, you should identify how you will get a vehicle. You have a few options: Obtain donations. People can donate to your organization and then you can use the proceeds to buy a car. Approach local corporations, such as large hardware stores, Fortune 500 companies, professional sports teams, and any business that has expressed an interest in your organization. Ask a dealer to donate. Some auto dealers will donate a car, provided you advertise that they are the donor. Buy with your own funds. If your organization has money from prior fundraisers, then you might buy the vehicle outright. You need to approach donors strategically. No one will give you money without understanding the purpose of your organization. Make sure to have the following information available for potential donors to look at: Your organization's background: when you were established, how much you have raised, etc. How you will showcase the sponsor. For example, will you mention them on marketing materials? On the raffle ticket itself? How you will monitor and evaluate the raffle. For example, does your organization have an accountant or bookkeeper who will oversee the raffle and keep track of the money raised? How you will use the money raised. Explain how the funds will further your mission. You can increase interest in your raffle if you also offer smaller prizes. This way, more than one person is a "winner" at the raffle. Consider offering these other prizes: cash awards vacation getaways electronics items (laptop, flat screen TV, radio, etc.) gift certificates Some government authorities have strict rules regulating raffles. Accordingly, you should consult with an attorney in your area to discuss whether or not you can hold the raffle. You can find an attorney by contacting your local or state bar association. Many U.S. states limit raffles to non-profit charitable organizations, churches, or volunteer organizations. States may also require organizations to have been in existence for a certain number of years before they can hold a raffle. Check whether you need to pay taxes on the vehicle and whether you need to register it before the raffle. The lawyer can also help you register your raffle, which is required in some states. For example, in California, you must register your raffle with the state's Attorney General. Once you have met with an attorney, you can better assess whether you want to go ahead with the raffle. Consider the time and money involved and decide whether to pursue a different fundraiser. There's always a chance you won't sell enough tickets to cover the cost of the car. For this reason, think carefully before buying the car outright with your funds. If you can't get a dealer to donate a car, then you might want to scrap the raffle. As an alternative, you can hold a raffle for smaller items, such as vacations or cash prizes.
Decide what kind of car to raffle. Identify how you will purchase the car. Approach potential donors. Offer other smaller prizes. Meet with an attorney. Decide whether to raffle a car.