Why sweepstakes, and why now
A well-run sweepstakes lets a nonprofit raise money from people far beyond its ballroom, its mailing list, and its zip code. Galas and live auctions remain the backbone of event fundraising, but they reach only the people in the room. A sweepstakes puts a compelling prize in front of a national online audience, turns every entry into a gift, and hands the organization a list of new supporters when it closes.
For organizations that already run strong events, a sweepstakes is not a replacement. It is a way to extend a campaign’s reach, fill the gap between events, and bring in donors who would never buy a gala ticket.
Sweepstakes are not raffles
The difference is legal, and it is what makes a sweepstakes workable online. A raffle combines a prize, chance, and a required payment, which most states treat as a form of gambling. Charities can usually run one only under a state or local license, often limited to in-person sales and local participants.
A sweepstakes removes the required payment. Anyone can enter free through an alternative method of entry, so donations become optional rather than the price of a ticket. That structure is what allows a sweepstakes to accept entries from supporters across the country instead of only those who can attend.
Why sweepstakes work
- Reach beyond the room. Entries come in online from anywhere, so a supporter’s out-of-state friends and family can take part.
- New donors, not just new dollars. Every entry captures contact information, giving the organization a list of warm prospects to cultivate after the drawing.
- Prizes people share. Travel packages, sporting events, and VIP experiences give supporters something exciting to post and forward.
- Mobile-first giving. TapKat reports that 70% of donations on its platform are made on mobile devices, which matches how people respond to social posts and texts.
- Year-round revenue. A sweepstakes can run between events, before a gala to build momentum, or after it to capture those who could not attend.
What to get right
Sweepstakes reward organizations that treat them as a campaign with rules, not a quick add-on. Four areas matter most:
- Official rules and free entry. Publish clear rules and offer a free entry method that is treated equally with paid entries.
- State requirements. Some states, including New York and Florida, require registration and bonding when total prize value exceeds $5,000. Confirm requirements with counsel before launch.
- The prize. The prize drives participation. It should appeal to a broad audience and carry little or no upfront cost to the organization.
- Promotion. A sweepstakes succeeds only if people see it. Plan emails, social posts, board outreach, and event-night mentions before launch.
Winners of prizes valued at $600 or more receive a Form 1099, and donation receipt language should be reviewed by the organization’s tax advisor. This article is not legal or tax advice.
Raising Paddles and TapKat: a partnership built for our clients
Raising Paddles has partnered with TapKat, a Boulder, Colorado company that runs online sweepstakes fundraisers for nonprofits. We help organizations across Chicago and the Midwest raise more in the room. TapKat helps them raise more beyond it.
TapKat’s model is built to keep risk low for the nonprofit:
| Feature | How TapKat handles it |
| Cost to start | No upfront costs and no subscription fees |
| Platform fee | 10% of donations, plus card processing |
| Access to funds | Proceeds go to the nonprofit’s bank account as donations arrive, not after the drawing |
| Prizes | Travel and experience packages on consignment, so the organization pays only for what it uses |
| Setup | Drag-and-drop dashboard with automated entries and donor receipts |
| Drawing | Winner selected by a secure random number generator and posted publicly |
| Eligibility | U.S. nonprofits with IRS status for at least one year |
For our clients, the fit is natural. The same travel packages and experiences that perform on auction night can anchor a sweepstakes that runs for weeks, reaches supporters who could not attend, and builds the donor list for next year’s event.
Let us connect you with TapKat
If your organization wants to reach new donors, extend a gala campaign, or add a revenue stream between events, a sweepstakes deserves a look. We would be glad to introduce you to the TapKat team for a no-cost consultation. They will walk through whether a sweepstakes fits your goals, which prizes make sense, and what a realistic timeline looks like.
To request an introduction, contact Dan Campbell at (630) 235-4566 or email dan@raisingpaddles.com. Let us know you are interested in a sweepstakes consultation, and we will make the connection.
