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check the local government Regulatory Agencies to make sure your organization can legally hold a raffle your state may prohibit Raffles other states Place regulations on how many Raffles non-profit organizations can conduct per year and the types of prizes that are allowed consult your States laws about Raffles or better yet talk to an attorney avoid prizes that could cause legal problems prices over 600 might draw the attention of the IRS 1X research source also avoid prizes that are tightly regulated such as Alcohol Tobacco and Firearms defined rules for your raffle you might get into legal trouble if a disgruntled loser decides to challenge the contest if the rules are spelled out clearly you can mitigate some of that liability be sure to cite the appropriate provision of your state law and your raffle rules for example this raffle is conducted according to the rules of the state of your state here in accordance with cite a reference to the law here spell out the rules in plain En