How to run a charity raffle in the UK: rules, prizes and pitfalls

In short
- A raffle is a lottery in law, so before you sell a single ticket you need to know which type you are running and whether it must be registered.
- Two formats let most groups raise money without a Gambling Commission licence: an incidental lottery drawn at an event, and a small society lottery you register with your local council.
- A small society lottery is registered with your council for a fee of around £40. At least 20% of the money must go to the good cause, and no single prize may exceed £25,000.
- Great prizes are donated, not bought. The right ask, aimed at the right local businesses, keeps far more of the ticket money with your cause.
- The biggest pitfalls are legal, not logistical: selling in the street, letting under-16s buy, or assuming Gift Aid applies to ticket sales. It does not.
A charity raffle is one of the most reliable fundraisers there is, which is exactly why people run them badly. The tickets are cheap, the format is familiar, and it all feels too simple to get wrong. Then someone sells a book of tickets in the high street, or promises a car as the top prize, and the evening that should have raised a few thousand pounds turns into a compliance headache instead.
I am Kevin Durham, a professional charity auctioneer and event host, and I have spent twenty years running the money side of fundraising events across the UK, from village dinners to a Monaco gala that raised over €1,000,000 in an evening. A raffle almost always sits somewhere in that night. Here is how to run a charity raffle properly: the rules that actually apply, how to land prizes people want, and the mistakes that quietly cost you.
What counts as a raffle or lottery in law?
In law, a raffle is a lottery: people pay to enter, prizes are awarded by chance, and at least one stage of the process relies on luck. The moment money changes hands for a chance to win, gambling law applies, and that is true whether you call it a raffle, a tombola, a prize draw or a sweepstake.
That sounds heavier than it is. The Gambling Commission publishes plain guidance on raffles and lotteries for fundraisers, and most small events fall neatly into one of a few permitted categories. The point is simply to know which category you are in before you start selling, not to be caught out afterwards.
The good news for most groups is that you almost certainly do not need a full operating licence. You need to match your raffle to one of the low-admin formats below and then follow that format’s rules. Get that right and everything else is common sense.
The two charity raffles you can run without a licence
For most fundraisers, there are two practical formats that need no Gambling Commission operating licence at all. The Commission sets these out in its guidance on permitted lottery formats, and between them they cover the vast majority of charity raffles.
The incidental lottery. This is the classic raffle drawn at an event: a gala dinner, a fete, a quiz night, a sports club presentation. It is called incidental because the raffle is a side attraction, not the reason people came. You can sell tickets and draw the raffle during the event, with no registration required. There are conditions: the tickets are sold and the draw normally takes place at the event itself, and there are limits on how much you can deduct for costs and prizes. It is the simplest route if everything happens on one night in one room.
The small society lottery. This is the format to use when you want to sell tickets in advance, over weeks, away from a single event. It is run by a non-commercial society (a charity, sports club, or community group) to raise funds for that society’s purpose. It does need registering, but with your local council rather than the Gambling Commission, and the process is straightforward. More on that next.
If your raffle is bigger than either of these allows, or you plan to sell across many areas or online at scale, you may need a licence instead. When in doubt, read the official guidance or ask your local licensing team before you print tickets.

How do you register a small society lottery?
You register a small society lottery with the licensing authority for the area where your group’s main office is based, which in practice means your local council. It is an administrative registration, not a difficult application, and you can usually do it online or by post.
The essentials, drawn from the Commission’s guidance on running a small society lottery, are worth knowing before you commit:
- The fee. Registration typically costs around £40, with an annual renewal of about £20. Your council confirms the exact figures.
- The 20% rule. At least 20% of everything you take must go to the good cause. Spend too much on prizes and printing and you can breach this without noticing.
- Prize and sales limits. No single prize may exceed £25,000. You cannot sell more than £20,000 of tickets in a single draw, or more than £250,000 of tickets across a year. Larger than that and you move into large society lottery territory, which needs a Commission licence.
- Returns. After each draw you send the council a short return showing tickets sold, proceeds, prizes and the amount that went to the cause. Keep clean records from day one and this is painless.
Register in good time. Councils can take a few weeks to process the paperwork, so do not leave it until the fortnight before your event.
What prizes work best, and how do you get them donated?
The best charity raffle prizes are things people genuinely want but would not normally buy for themselves, and the best way to get them is to have them donated rather than bought. Every pound you spend on prizes is a pound off the total, so a donated prize is worth far more than its ticket price to your cause.
In my experience the prizes that sell tickets fastest are experiences and treats, not gadgets: a meal for two at a good local restaurant, a hamper from a farm shop, a spa afternoon, a case of wine, tickets to a match or a show. Local businesses will often give these gladly, because a raffle prize puts their name in front of a warm, local audience for the price of one voucher.
To land good donations, make the ask specific and easy:
- Approach the right businesses. Local, independent, and already community-minded beats a national chain that routes everything through head office.
- Tell them what they get. Their logo on the ticket, a mention from the stage, a photo with the winner. Recognition is the currency here.
- Make saying yes simple. A one-paragraph email, a clear deadline, and an offer to collect the prize yourself.
If you are also running an auction on the night, the same donor relationships feed both. My guide to donation ideas covers how to source lots that raise real money, and the strongest raffle prizes often come from exactly the same conversations. Sourcing in-house, rather than buying prizes in, is one of the simplest ways to keep more of the money with the charity.
How should you price and sell your tickets?
Price your tickets so they are an easy impulse buy, and make the maths of buying more feel like a bargain. The familiar structure works because it works: £1 a ticket, or a strip of five for £5 framed so that buying a strip feels like the sensible choice.
A few rules are not optional. Every ticket must be the same price, so you cannot charge one buyer more than another for the same chance. Tickets must be paid for before the draw, so no IOUs and no “I’ll settle up later”. You can sell to anyone aged 16 or over, but not to under-16s. And you cannot sell tickets in the street, which catches more well-meaning volunteers than any other rule.
To sell more without breaking any of that, keep the effort where the people are:
- Sell in advance and on the night. A small society lottery lets you run for weeks beforehand, which almost always beats relying on the room alone.
- Give sellers a target. People raise more when they know the number they are aiming at.
- Bundle the raffle with the evening’s energy. A raffle draw lands hardest when the room is already warm. Slot it alongside your other fundraising games rather than dropping it flat into a quiet moment.
The single biggest lever is confidence. A seller who believes in the prizes and asks everyone will out-raise a table of tickets left hopefully by the door.
How do you draw a charity raffle fairly?
You draw a charity raffle fairly by making the process visibly random and impossible to rig, then doing it in front of the people who bought tickets. Fairness that nobody sees is worth very little, because trust is part of what makes people buy next year.
Keep it simple and transparent. Fold or tear tickets so numbers cannot be read, mix them properly in a drum or a bowl, and have someone independent draw the winning tickets in full view. If your draw is not at a live event, publish the winning numbers promptly and tell buyers how to claim, ideally with a witness present when you draw.
A short script from the stage helps more than people expect. Name the prizes, thank the donors by name, build a little tension before each number, and celebrate the winners warmly. Momentum is a skill, not luck, and a well-run draw sends people home feeling good about giving, which is the real return on the night.
What are the most common charity raffle pitfalls?
The most common charity raffle pitfalls are legal rather than logistical, and nearly all of them come from treating a raffle as too casual to have rules. These are the ones I see catch good, well-meaning fundraisers:
- Selling tickets in the street. It feels harmless and it is not allowed. Sell at your event, through members, or in premises with permission instead.
- Selling to under-16s. Tickets are for over-16s only. Brief your volunteers so nobody sells to a keen teenager.
- Assuming you do not need to register. If you are selling in advance, away from a single event, that is a small society lottery and it must be registered with the council first.
- Breaching the 20% rule. Overspending on prizes and printing can push the share going to the cause below the legal minimum. Budget for it from the start.
- Promising a prize you have not secured. Never advertise a top prize until it is confirmed in writing. A withdrawn star prize damages trust fast.
- Mishandling the money. Count takings with two people, bank promptly, and keep the records your return will need.
None of these are hard to avoid. They only bite the events that assumed a raffle was too small to bother getting right.
Can you claim Gift Aid on raffle tickets?
No. You cannot claim Gift Aid on raffle or lottery ticket sales, because the buyer receives something of value in return: the chance to win a prize. Gift Aid only applies to genuine, freely given donations, as the government’s Gift Aid guidance sets out.
This trips people up because Gift Aid is so central to other fundraising. The workaround is to keep the two things separate. Run your raffle as a raffle, and offer a straightforward donation route alongside it, a collection, a pledge, or a fund-a-need, where eligible UK taxpayers can add Gift Aid to a true gift. That way the raffle does its job and the donations do theirs, and you claim the tax relief only where it genuinely applies.
A quick compliance checklist before you sell
Before any tickets go out, run through the basics one more time. It takes five minutes and saves the kind of problem that is hard to fix afterwards.
- Which format are you running: incidental lottery at an event, or a small society lottery sold in advance?
- If it is a small society lottery, is it registered with your council, with the fee paid?
- Are all tickets the same price, and will every one be paid for before the draw?
- Are your sellers briefed on over-16s only, and no selling in the street?
- Have you budgeted so at least 20% of proceeds reaches the cause?
- Is every advertised prize confirmed in writing?
If you can tick all six, you are on solid ground. If you are unsure on any of them, the official guidance linked above answers it faster than guessing.
Where to start
Decide your format first, because everything else follows from it. If the raffle lives entirely inside one event, an incidental lottery keeps the admin to almost nothing. If you want to sell for weeks beforehand, register a small society lottery with your council and give yourself time. Then line up donated prizes people actually want, brief your sellers, and plan a draw that feels fair and fun.
A raffle rarely carries a fundraising night on its own, but run well it lifts the whole room and warms people up for the bigger asks. If you would like a hand shaping an event where the raffle, the games and a live auction all pull together, I offer a free initial consultation through my auctioneer services. And if you are still gathering options, my wider list of fundraising ideas is a good place to start.

Kevin Durham
Charity auctioneer & event host
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