Virginia 50/50 Raffle Laws: Can Nonprofits Run Cash 50/50 Raffles?

A 50/50 raffle can be one of the simplest fundraising ideas for a nonprofit to explain. Supporters purchase raffle tickets, the prize grows as participation increases, and the eventual winner receives a portion of the proceeds while the organization keeps the remainder for its charitable mission.

But simplicity for the supporter does not mean the fundraiser is legally simple. Virginia regulates nonprofit raffles as charitable gaming. Organizations need to understand who qualifies, when a charitable gaming permit is required, how raffle tickets and drawings must be handled, and what records must be maintained.

For nonprofits specifically considering a cash 50/50 raffle, there is good news. Virginia Code § 18.2-340.22 authorizes qualified organizations to conduct raffles and recognizes the award of prize money in charitable gaming. Virginia's own charitable gaming application materials also specifically identify standalone 50/50 raffles.

The important question, then, is not simply whether Virginia allows 50/50 raffles. It is how a nonprofit can conduct one correctly.

Quick Answer: Are 50/50 Raffles Legal in Virginia?

Yes. Qualifying organizations can conduct charitable raffles in Virginia, and Virginia's current charitable gaming materials expressly contemplate standalone 50/50 raffles.

Virginia Code authorizes qualified organizations to conduct raffles and recognizes prize money in charitable gaming. The Virginia Department of Agriculture and Consumer Services, or VDACS, regulates charitable gaming in the Commonwealth.

That does not mean every person or organization can simply start selling 50/50 tickets. Depending on the organization and anticipated raffle receipts, qualification, permitting, reporting, ticket, drawing, recordkeeping, and other requirements can apply.

For the broader legal framework beyond 50/50 raffles, read our complete guide to Virginia raffle laws.

Virginia 50/50 Raffle Laws at a Glance

The most important takeaway is that Virginia provides a workable framework for charitable raffles, but nonprofits should distinguish between the state's authorization of raffles and the specific method they intend to use to sell tickets and administer the drawing.

What Is a 50/50 Raffle?

A traditional 50/50 raffle uses ticket sales to create a cash prize pool. Instead of announcing a fixed merchandise prize before the fundraiser begins, the eventual prize is generally tied to the amount raised through ticket sales.

The familiar concept is straightforward: one portion goes to the winner and another portion remains with the organization. The exact campaign structure and use of proceeds still have to comply with applicable charitable gaming requirements.

That makes a 50/50 raffle different from a conventional raffle for a donated television, vacation package, vehicle, gift basket, or other fixed item. The increasing cash prize can itself become part of the campaign's appeal because supporters can see the potential award grow as participation increases.

For nonprofits, that creates a fundraiser in which promotion and prize growth can reinforce one another.

Does Virginia Law Allow Cash Raffle Prizes?

Yes. Virginia Code § 18.2-340.22 recognizes the award of prize money in authorized charitable gaming and identifies raffles among the forms of charitable gaming qualified organizations may conduct.

The practical confirmation for 50/50 fundraising also comes directly from VDACS. The agency's Charitable Gaming Permit Application specifically addresses a “standalone raffle only, including 50/50” along with other raffle formats.

The application asks organizations for information including the raffle prize, ticket prices, beginning date for ticket sales, drawing date and time, oversight, rules of play, and whether tickets will be sold outside Virginia.

That gives nonprofits a much clearer answer than trying to infer whether a 50/50 fundraiser qualifies from the general word “raffle” alone.

Who Can Conduct a 50/50 Raffle in Virginia?

Virginia's charitable gaming law uses the term “qualified organization.” The definition contained in Virginia Code § 18.2-340.16 and the broader charitable gaming framework determine which organizations can conduct authorized charitable gaming.

The law encompasses qualifying organizations organized for recognized religious, charitable, community, educational and other authorized purposes, subject to the statutory qualification requirements. Organizations should therefore verify that they meet Virginia's definition rather than assuming federal nonprofit or tax-exempt status automatically answers the state charitable-gaming question.

This distinction can matter for schools, booster organizations, youth organizations, churches, veterans organizations, community groups and traditional charities.

The relevant question is not simply, “Are we a nonprofit?” It is also, “Do we qualify to conduct charitable gaming under Virginia law?”

That qualification should be confirmed before planning the campaign.

Does a Virginia Nonprofit Need a Permit for a 50/50 Raffle?

Not necessarily. Virginia provides an important raffle-specific exemption based on the organization's anticipated gross raffle receipts.

Under Virginia Code § 18.2-340.23, an organization that reasonably expects to realize $40,000 or less in gross receipts from raffles during any 12-month period can qualify for an exemption from the charitable gaming permit requirement applicable to those raffles.

If actual raffle gross receipts exceed the $40,000 threshold, VDACS can require the organization to obtain a permit and file the applicable report.

For organizations expecting to exceed the threshold, VDACS provides its current charitable gaming organization licensing information, including application procedures and current fees.

That makes anticipated annual raffle volume an important planning question. A nonprofit hoping to build a substantial or recurring 50/50 fundraising program should consider its expected cumulative raffle activity rather than looking at only one campaign.

Compliance Tip: The $40,000 Threshold Is Based on Gross Raffle Receipts

The $40,000 figure concerns gross raffle receipts during a 12-month period, not simply the nonprofit's share after awarding the prize.

That distinction can matter considerably with 50/50 fundraising because a significant portion of the money raised may ultimately become the winner's prize.

Organizations planning several raffles should therefore monitor cumulative gross receipts rather than treating every campaign as an unrelated compliance calculation.

What Happens if a Raffle Starts Small but Exceeds $40,000?

Virginia addresses that possibility directly. An organization may reasonably expect to remain at or below $40,000 and initially qualify for the raffle exemption.

If its actual gross receipts later exceed the threshold, VDACS can require it to obtain a charitable gaming permit and file the applicable report under Virginia's charitable gaming exemptions.

That means successful fundraising can change an organization's regulatory obligations. A nonprofit should not wait until the end of the year to discover that multiple successful raffles pushed it beyond the applicable threshold.

For organizations planning frequent campaigns, compliance should be built into the fundraising strategy before growth occurs.

Can Virginia Raffle Tickets Be Sold Outside the Organization's Local Jurisdiction?

Virginia provides geographic flexibility for raffle ticket sales. Under Virginia Code § 18.2-340.26, a qualified organization may sell raffle tickets both inside and outside the jurisdiction designated in its permit.

In the ordinary case, the raffle drawing is conducted within Virginia. The statute also provides a framework for certain raffles involving drawings outside the Commonwealth, but additional requirements can apply.

For most Virginia nonprofits, the practical takeaway is simpler. A qualifying raffle is not necessarily confined to supporters located in the organization's immediate city or county merely because that jurisdiction is associated with its permit.

That potential reach can be valuable for organizations whose supporters, alumni, families, volunteers or donors are distributed across Virginia.

Can Virginia Nonprofits Sell 50/50 Raffle Tickets Online?

This is where nonprofits need to be particularly precise.

Virginia law clearly permits qualified organizations to conduct raffles and allows raffle tickets to be sold beyond the jurisdiction designated in an organization's permit. However, those provisions should not automatically be interpreted as blanket authorization for every form of internet checkout, electronic ticketing, or digital raffle administration.

Virginia's standalone raffle ticket regulations contain specific requirements governing raffle tickets. Among other provisions, the regulations address consecutive numbering, detachable sections, purchaser information, drawing information, ticket price and other required raffle details.

The Virginia primary sources reviewed for this guide do not provide a simple blanket provision authorizing an ordinary charitable raffle to replace applicable ticket requirements with unrestricted internet checkout through any website or payment platform.

For that reason, a nonprofit planning a digital 50/50 campaign should confirm its exact proposed sales and ticketing process with VDACS and ensure that the technology it uses can satisfy the requirements applicable to its organization and raffle.

This is an important example of why “raffles are legal” and “this specific digital raffle process is compliant” are not the same question.

What Information Must Be on Virginia Raffle Tickets?

For organizations subject to Virginia's charitable gaming regulations, standalone raffle tickets have detailed construction requirements.

11VAC20-20-140 requires each applicable ticket to have a detachable section and to be consecutively numbered. Both sections must bear the same number, while the portion retained by the organization must provide space for purchaser information.

The purchaser's portion must also contain required information concerning the raffle, including information about the drawing, charitable organization conducting the raffle, ticket price and charitable gaming permit.

These requirements demonstrate why a nonprofit should not assume that a generic online giveaway application automatically satisfies Virginia charitable gaming requirements.

Fundraising technology should be selected around the applicable legal framework, not the other way around.

How Must the Winner Be Drawn?

Virginia establishes specific requirements for conducting a raffle drawing.

Under Virginia Code § 18.2-340.26, eligible ticket stubs or other detachable sections are placed into a receptacle from which the winning ticket is drawn. The receptacle must be designed so each ticket has an equal opportunity to be selected.

That requirement is especially important when evaluating digital raffle technology.

Automated random winner selection may be appropriate in jurisdictions whose rules permit that process, but a nonprofit should not simply substitute a software-generated drawing for Virginia's prescribed procedure without confirming that the proposed process complies with applicable requirements.

Technology should adapt to the law, not the law to the technology.

What Records Must a Virginia Nonprofit Keep?

Virginia's charitable gaming regulations impose recordkeeping requirements on organizations subject to them. Those requirements include maintaining information concerning raffle receipts, prizes, deposits and qualifying prize winners.

Virginia's charitable gaming recordkeeping requirements also address retention of raffle-related records. VDACS provides additional forms and resources through its charitable gaming forms library.

For a growing nonprofit, this is another reason raffle administration matters.

Selling tickets is only one part of the fundraiser. Reconciliation, documentation, drawing integrity and financial records all remain part of operating a responsible charitable gaming campaign.

Can Minors Participate in Virginia Raffles?

Virginia's charitable gaming regulations contain specific provisions concerning minors. An organization's house rules may further restrict minors from purchasing raffle tickets.

Virginia regulations also allow individuals younger than 18 to sell raffle tickets for a qualified organization when they are raising funds for activities in which they actively participate. Organizations can review the applicable provisions in 11VAC20-20-60.

This can be particularly relevant for youth organizations, school-related groups and other organizations involving young participants.

Organizations should still establish clear house rules and confirm how those rules apply to the particular campaign they plan to conduct.

Can a Third Party Run the Raffle for the Nonprofit?

Virginia places important restrictions on compensated outside management of charitable gaming.

Virginia Code § 18.2-340.33 generally prohibits a qualified organization from contracting with or compensating another person for the purpose of organizing, managing or conducting charitable games, subject to statutory exceptions.

This distinction matters when a nonprofit evaluates fundraising technology. Using software to support raffle administration is not necessarily the same thing as transferring legal responsibility for conducting the raffle to an outside company.

The organization should retain appropriate control over its charitable gaming activity and understand which functions Virginia law requires it to perform.

A platform should support the nonprofit's raffle. It should not cause the nonprofit to assume that its legal responsibility has been outsourced.

How Can RaffleGives Support Virginia 50/50 Fundraising?

RaffleGives is built specifically around nonprofit cash and 50/50 fundraising. The platform is designed to reduce the administrative burden associated with launching, promoting and managing nonprofit raffle campaigns.

Organizations can use RaffleGives to support campaign setup, participant information, reporting, campaign sharing and other fundraising workflows. The RaffleGives Ambassador Program can also help nonprofits activate board members, families, volunteers, alumni, employees and community partners to expand campaign reach beyond an existing donor database.

Virginia's specific charitable gaming requirements mean the implementation still matters. RaffleGives does not make a raffle legal simply because the technology exists.

A Virginia nonprofit should first determine which charitable gaming requirements apply to it, including whether it qualifies for the $40,000 raffle exemption or requires a permit. The organization should also confirm that its proposed ticketing, sales and drawing workflow complies with applicable VDACS requirements.

That reflects the compliance-first approach behind RaffleGives:

Technology determines what a nonprofit can do. State law determines what it may do.

Organizations interested in the platform can see how RaffleGives works and review our pricing before planning a campaign.

Why Are 50/50 Raffles Attractive to Virginia Nonprofits?

The appeal is partly psychological. A fixed-prize raffle asks supporters to decide whether a particular item interests them, while a 50/50 raffle offers a cash prize whose potential value can increase as participation grows.

That can create a natural campaign story. Instead of repeatedly posting the same fundraising request, an organization can communicate campaign progress, participation milestones, approaching deadlines and the evolving prize opportunity.

Digital promotion can expand that effect further when an organization has a large existing community. Board members, parents, volunteers, employees, alumni, teams, congregations and community partners may each have networks the nonprofit does not reach through its donor database alone.

The fundraiser can therefore become both a revenue tool and a supporter-engagement opportunity.

What Should Virginia Nonprofits Do Before Launching a 50/50 Raffle?

A strong campaign begins with compliance rather than promotion.

First, determine whether the organization qualifies to conduct charitable gaming under Virginia law. Next, estimate total raffle gross receipts over the relevant 12-month period so the organization knows whether the $40,000 exemption is realistically applicable.

If a permit is required, allow adequate time for the VDACS application process. The agency's charitable gaming licensing page provides the current application requirements, fees and processing information.

The organization should then document the raffle structure, prize calculation, ticket pricing, sales method, drawing procedure, campaign dates, responsible personnel and recordkeeping process.

For any digital component, confirm the proposed workflow against the requirements that apply to the raffle rather than assuming that general permission to conduct a raffle automatically authorizes every digital sales method.

Once those pieces are established, the organization can turn its attention to the part supporters actually see: the campaign.

Virginia 50/50 Raffle Compliance Checklist

Before launching, a Virginia nonprofit should be able to answer the following questions:

• Does our organization qualify under Virginia charitable gaming law?
• What do we reasonably expect our total raffle gross receipts to be over 12 months?
• Do we qualify for the $40,000 raffle exemption?
• If not, have we obtained the required charitable gaming permit?
• Have we established the prize structure and rules of play?
• Do our tickets satisfy the requirements applicable to our organization?
• Where and how will tickets be sold?
• If digital sales are contemplated, have we confirmed that exact process?
• Where will the drawing occur?
• Does the drawing procedure satisfy Virginia requirements?
• Who within the organization is responsible for oversight?
• Have we established reconciliation and recordkeeping procedures?
• Are our campaign promotion and technology consistent with the compliant raffle structure?

If the organization cannot confidently answer one of these questions, that issue should be resolved before ticket sales begin.

What Are Common Virginia 50/50 Raffle Mistakes?

One of the easiest mistakes is assuming that nonprofit status automatically authorizes charitable gaming. Virginia uses its own qualification framework, so organizations should verify eligibility under state law before conducting a raffle.

Another is misunderstanding the $40,000 exemption. The threshold relates to gross raffle receipts over a 12-month period. Organizations planning multiple campaigns should monitor cumulative activity rather than looking at each raffle in isolation.

A third is assuming that because Virginia permits ticket sales outside the jurisdiction designated in a permit, every form of online ticket sale is automatically authorized. Those are different questions, particularly given Virginia's detailed ticket and drawing requirements.

Finally, organizations should not wait until after a successful campaign to think about documentation. Reconciliation and recordkeeping are part of charitable gaming administration, not cleanup work after the raffle ends.

Frequently Asked Questions About Virginia 50/50 Raffles

Are 50/50 raffles legal in Virginia?

Yes. Virginia permits qualified organizations to conduct raffles, and VDACS's charitable gaming application materials specifically identify standalone 50/50 raffles. Organizations must still comply with the charitable gaming requirements applicable to their campaign.

Can a Virginia nonprofit give the winner cash?

Yes. Virginia law recognizes prize money in authorized charitable gaming. The organization must still conduct the raffle in accordance with applicable statutes and regulations.

Does every Virginia raffle require a permit?

No. Under Virginia Code § 18.2-340.23, qualifying organizations reasonably expecting $40,000 or less in gross raffle receipts during a 12-month period can qualify for a raffle-specific exemption.

How much does a Virginia charitable gaming permit cost?

VDACS currently lists a $200 nonrefundable application fee for organizations required to file a Charitable Gaming Permit Application, subject to applicable exemptions. Organizations should verify the current amount on the VDACS licensing page before applying.

How long does Virginia charitable gaming approval take?

VDACS currently states that its Office of Charitable and Regulatory Programs has 45 days to process a completed application. Incomplete applications can delay issuance, so organizations should plan ahead.

Can Virginia raffle tickets be sold outside the nonprofit's city or county?

Yes. Virginia Code § 18.2-340.26 states that a qualified organization may sell raffle tickets both inside and outside the jurisdiction designated in its permit.

Can Virginia nonprofits sell 50/50 tickets online?

Virginia clearly permits charitable raffles, but organizations should not interpret that authorization as automatic approval of every form of internet raffle-ticket checkout. Because Virginia contains specific ticket and drawing requirements, nonprofits planning online sales should confirm their proposed process with VDACS before launching.

Does Virginia require physical raffle tickets?

Virginia regulations establish specific construction requirements for standalone raffle tickets for organizations subject to those regulations, including detachable sections and consecutive numbering. Organizations should determine exactly which requirements apply to their campaign before choosing a ticketing system.

How is a Virginia raffle winner selected?

Virginia Code § 18.2-340.26 establishes requirements for eligible ticket stubs or detachable sections to be placed in a receptacle designed so each eligible ticket has an equal opportunity to be selected.

Can minors sell raffle tickets in Virginia?

Virginia regulations allow individuals younger than 18 to sell raffle tickets for a qualified organization when they are raising funds for activities in which they actively participate. An organization's house rules can impose additional restrictions.

Related Virginia Raffle Resources

Virginia nonprofits looking beyond the 50/50 format should begin with our complete Virginia Raffle Laws: How Nonprofits Can Hold a Legal Raffle in Virginia guide.

Organizations evaluating fundraising technology can also read RaffleGives: The Best Online Raffle Platform for Nonprofits Running Cash and 50/50 Raffles.

If your organization is comparing software costs, read Free Raffle Websites for Nonprofits: What Does “Free” Really Mean?.

You can also explore the RaffleGives State Raffle Laws library to understand how charitable raffle requirements differ across the country.

Ready to Explore a Virginia 50/50 Raffle?

Virginia gives qualifying nonprofits an opportunity to incorporate cash and 50/50 raffles into their fundraising strategy. The format can be particularly engaging because supporters are not simply contributing to a cause. They are participating in a fundraiser where the potential prize can grow with the campaign.

The compliance work comes first. Determine whether your organization qualifies, understand the $40,000 gross-receipts threshold, obtain a permit when required, establish compliant ticket and drawing procedures, and verify your proposed sales process before launch.

Once those requirements are clear, RaffleGives can help your organization build a fundraising campaign designed to activate and engage your community.

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This article is provided for general informational purposes and does not constitute legal advice. Charitable gaming requirements can depend on an organization's status, campaign structure and circumstances. Organizations should review current Virginia Department of Agriculture and Consumer Services requirements and consult qualified legal counsel when appropriate.