General information, not legal or tax advice. Raffle rules are set by each state; check with your state's charitable gaming regulator. Federal rules checked against IRS Publication 3079 and the IRS Instructions for Forms W-2G and 5754 (Rev. January 2026), and the Washington example against the Washington State Gambling Commission, on November 2026.
Can a PTO do a raffle? Often yes, but three separate yeses are needed: your state's raffle law has to cover your PTO, your school district has to allow it on its property and with its students, and the PTO itself has to have the nonprofit status the state asks for. Miss any one and the raffle can't go ahead as planned.
Quick answer
Is it legal for a PTO to hold a raffle?
Usually, in states that allow charity raffles, if the PTO or PTA counts as a qualified nonprofit under state law and follows any license, prize and sales limits. The school district's policy then decides whether tickets can be sold at school, during the school day or by students. Check both before printing tickets.
Can a PTO do a raffle? The three checks
A raffle is gambling under state law: a prize, chance and payment. Most states make an exception for qualified charities, so the real question is whether your parent group fits that exception, and whether the school lets you run it there.
| Who decides | What they control | Where to ask |
|---|---|---|
| The state | Who may hold raffles, licenses, prize and sales limits | Your state's charitable gaming regulator, attorney general or gaming commission |
| The city or county | Local permits or police notice in some states | City or town clerk |
| The school district | Use of school property, school hours, student and staff involvement | Principal, then district fundraising policy |
| Your PTO | Bylaws, board vote, insurance, tax status | Your board, state PTA (for PTA units) |
Does your PTO qualify to hold a raffle?
State raffle laws usually limit raffles to nonprofit organizations, and many tie that to federal tax-exempt status. Some also require the group to have existed for a set number of years or to have elected officers. A PTO with its own 501(c)(3) recognition, or a PTA unit covered by its state PTA's group exemption, is in the strongest position.
An informal parent club with no tax status may not qualify at all. Not sure where your group stands? Our guide on whether a donation to a PTO is tax deductible shows how to look up your PTO's status in five minutes.
Run the raffle in the PTO's own name. In some states the school or district isn't an eligible raffle sponsor, so a raffle "by Lincoln Elementary" can be a problem even when the PTO's raffle would be fine.
Example: how detailed one state gets
To show how specific state rules can be, here is what the Washington State Gambling Commission raffles page said when checked in November 2026. Your state will differ.
- A school's PTA or associated student body "will usually qualify" to offer raffles.
- Groups inside a PTA, such as a choir or band, count toward the whole PTA's limits.
- Two unlicensed public raffles a year are allowed if their combined gross revenue doesn't exceed $5,000, with notice to local police at least five days before the drawing.
- Tickets can't be sold over the internet or by telephone, and buyers must be 18 or older.
School raffle laws vs district policy
Even where state law says yes, the district can say no, and it usually has the final word on its buildings. District fundraising policies commonly cover sales on campus, sales during school hours, and whether students or staff may sell. Ask the principal for the policy in writing before you plan.
| Plan | Why it gets questioned | Check with |
|---|---|---|
| Students sell tickets door to door | Some states set a minimum age to sell or buy; safety | State regulator and district |
| Tickets sent home in backpacks | Puts students in the sales chain | District policy |
| Selling at car line or during the school day | Many districts limit sales in school hours | Principal |
| Teachers or staff selling tickets | Staff may be barred from selling for outside groups | District policy |
| 50/50 at a basketball game | Still a raffle with a cash prize | State regulator and athletics office |
| Selling tickets online | Some states ban online or phone sales | State regulator |
A 50/50 at a game is still a raffle, so it needs the same permission; our guide on how to run a 50/50 raffle covers the cash handling. Planning to sell through your PTO's Facebook page? Read how to do a raffle on Facebook first, because both the state and Facebook have rules.
Taxes and money: what the PTO treasurer needs to know
- Tickets aren't deductible. IRS Publication 526 says amounts paid for raffle tickets can't be deducted as charitable contributions, so don't call them donations.
- Large prizes are reported. For prizes paid in 2026, the PTO files Form W-2G when the prize, minus the ticket price, is $2,000 or more and at least 300 times the ticket price, and withholds 24% when it exceeds $5,000, per the IRS Instructions for Form W-2G. Most PTO prizes fall well below this.
- Buying prizes with PTO funds is a normal fundraising expense if the board approves it and your state doesn't cap purchased prizes. Record it as a raffle expense.
- Donated prizes deserve a written thank-you; our PTO thank-you letter for donations has a version for local businesses.
Template: raffle approval request to your principal
Hi [Principal name],
The [School] PTO would like to hold a raffle to raise money for [project]. Here is the plan:
Sponsor: [PTO legal name], EIN [number], [501(c)(3) / covered by the [State] PTA group exemption]
State permission: [license number, or "exempt under [rule], confirmed with [agency] on [date]"]
Prizes: [list and approximate value]
Ticket price and sales period: $[price], [start date] to [end date]
Who sells: adult volunteers only, at [events / locations]
Drawing: [date, time, place], with two board members present
Could you confirm this fits district policy, especially sales on campus and any student involvement? Thank you,
[Name, PTO role, phone]
When the answer is no
If your state doesn't allow raffles, your PTO doesn't qualify yet, or the district won't approve, you still have options. A silent auction removes chance, a free drawing removes payment, and a straight sale of themed baskets at a fixed price removes both. Check free drawings with the regulator too, since a "suggested donation" can count as payment.
Next step
Once the state, district and board have said yes, set a ticket price that covers prizes and still hits your goal. Our guide on how to price raffle tickets walks through the math. Church volunteers face a similar checklist, covered in whether a church can do a raffle.
Frequently asked questions
Can students sell PTO raffle tickets?
Only if both state law and the district allow it. Some states set a minimum age for buying or selling raffle tickets or allow minors to sell only for youth organizations, and many districts keep students out of ticket sales. The safest plan is adult volunteers selling to adults, with students uninvolved.
Does a PTO need to be a 501(c)(3) to have a raffle?
Usually it needs whatever nonprofit status the state's raffle law requires, and many states point to federal tax exemption. A PTA unit may be covered by its state PTA's group exemption. An informal parent group without status should get recognized first or ask the regulator whether it qualifies.
Can a PTO raffle off cash or gift cards?
Some states allow cash prizes in charity raffles and some limit or ban them, and gift cards are often treated like cash. A 50/50 raffle is a cash prize by design. Check your state's rules before advertising cash, and remember that large prizes trigger IRS reporting.
What happens if a PTO runs a raffle without a license?
Where a license is required, an unlicensed raffle can be treated as illegal gambling, and the volunteers who organized it can face penalties. It can also cost the PTO the principal's trust and its use of school space. If you're unsure whether you need one, ask the regulator in writing first.