Nonprofit Technology & Fundraising Blog
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April 11, 2025 | Donor Engagement, Donor Retention, Fundraising Communication, Fundraising Events, Thanking Donors
Hosting a prize drawing is more than just giving away a gift—it’s an opportunity to bring people together, spark excitement, and fuel support for your cause. Whether you’re a nonprofit leader planning your next big fundraiser or a community organizer adding a little flair to your event, a well-executed prize drawing can be the heart of your outreach strategy.
When done right, a prize drawing can do more than raise money—it can build awareness, strengthen donor relationships, and turn casual supporters into enthusiastic ambassadors.
In this guide, we’ll explore prize drawing ideas to make your event memorable and impactful, with practical ideas for prize baskets, promotional strategies, and storytelling tips that connect with your audience.
Before jumping into prize selection, it’s important to outline the fundamental steps of organizing your prize drawing to ensure a smooth and engaging experience for participants.
Every great fundraiser starts with a purpose. Are you trying to raise critical dollars for your annual campaign? Create excitement for a new program? Re-engage lapsed donors? Your prize drawing should align with those goals. Knowing your audience—whether it’s families at a community fair or major donors at a gala—will help you choose the right tone, prizes, and promotional channels.
The format you choose should reflect the spirit of your organization. Will it be a casual, fun community drawing or a high-end donor appreciation giveaway? Common entry methods include:
Once you’ve decided on a format, make the entry process simple and clear, and communicate the rules to participants. The easier it is to participate, the more entries you’ll get.
DonorPerfect’s online forms make it easy to create custom entry forms for your prize drawing—whether you’re collecting donations, registrations, or simple sign-ups.
Your prize selection is where excitement meets strategy. The right prizes do more than encourage participation—they reflect your mission, connect with your audience’s interests, and leave a lasting impression. Whether you’re hosting a major fundraiser, a community event, or a donor appreciation night, a thoughtful prize basket can create excitement and deepen donor engagement.
Start by considering your audience:
Aim for variety—offering a mix of practical, personal, and unexpected prizes can increase appeal across donor segments.
Below are some unique and crowd-pleasing basket ideas to help spark creativity and maximize participation:
Transparency builds trust. Create clear and simple rules so everyone knows what to expect. Include:
Now it’s time to get the word out—and this is where your team can shine. A strong promotional strategy is key to building momentum and attracting participants. When promoting your prize drawing, include visuals and descriptions to help participants get excited.
Don’t do it alone! Getting the right people involved can make a big difference in spreading the word. Consider enlisting the help of:
Make it easy to enter with QR codes! Add QR codes to your flyers, posters, and printed materials so supporters can instantly access your prize drawing entry form, donation page, or event details—right from their phones. DonorPerfect’s free QR code generator makes it simple to connect offline interest with online engagement.
Be sure to showcase your prize basket themes with visuals. People are more likely to enter when they can see what’s up for grabs.
Promote your prize drawing ideas with DonorPerfect’s built-in email marketing tools. Create personalized outreach campaigns and reminder emails that keep your supporters excited and engaged.
You may hear people refer to your prize drawing as a “raffle,” but they aren’t always the same thing. A raffle typically involves selling tickets for a chance to win a prize—and that makes it subject to gambling laws in many states.
To avoid legal headaches, many organizations opt for a chance drawing, which doesn’t require a purchase to participate. Always check your local laws before collecting payments or selling tickets. Here is an example of one state’s rules put into practice. If you’re unsure, consult your legal team or seek guidance from your local nonprofit association or resource.
Looking to mix things up beyond traditional baskets? Consider adding some variety to your event with these creative and engaging prize drawing formats:
A 50/50 prize drawing is a simple but powerful fundraising idea. Participants purchase tickets, and the total pot is split evenly—half goes to the lucky winner, and the other half supports your organization. It’s an easy way to generate excitement while directly benefiting your cause. Often, the winner ends up donating the funds back to the charity as well. Be sure to check local regulations, as this format may be subject to raffle laws in some states.
Create a unique experience with an adult-themed prize drawing by assembling a basket or wagon full of spirits, wine, or beer. Invite your board members, staff, or supporters to each contribute a bottle. This crowd-pleasing prize generates buzz and tends to attract high interest. Promote it as a “Whiskey Wagon” or “Booze Basket Bonanza” to build anticipation. As always, make sure to follow any applicable laws or venue rules regarding alcohol giveaways.
These types of chance drawings can add variety and energy to your event lineup while appealing to different segments of your audience. Just remember to communicate the rules clearly, and promote them with the same enthusiasm as your main drawing.
If your prize drawing includes donated items or donor participation, it’s important to communicate what is and isn’t tax-deductible. Transparency builds trust and strengthens your relationship with supporters.
In most cases, individuals or businesses that donate items or services for your prize drawing may be able to claim a charitable deduction for the fair market value of their donation. However, donors should consult with a tax advisor to confirm eligibility and documentation requirements.
Generally, participants who make a payment in exchange for a chance to win a prize are not eligible for a tax deduction. The IRS considers this a transaction rather than a donation since the participant is receiving something of value in return (the opportunity to win).
Helping your supporters understand the tax implications of participating in your prize drawing builds transparency and strengthens donor confidence in your organization.
While your prize drawing may be the highlight, it often fits into a larger event. That means smooth event planning is essential to overall success. With systems like DonorPerfect, you can streamline every step of your event—from invites to post-event follow-up.
A well-coordinated event sets the stage for a successful prize drawing. Pair your prize drawing ideas with an engaging environment to maximize participation and create a memorable experience for your guests.
“DonorPerfect is just easy. It will make life easier. Especially with relationships. Not only the building, but the tracking. Being able to get those letters out immediately, being able to link them to your events—it’s just an all-in-one great tool to use.” – Susan Sauro
DonorPerfect makes event planning simple with built-in tools for invitations, registration, attendee tracking, and secure payment processing—all in one place.
A successful prize drawing is more than just luck—it’s a powerful tool for connection, celebration, and community building. By offering thoughtful prize baskets, organizing with care, and telling your story in a way that resonates, you’ll create a memorable experience that inspires ongoing engagement. Whether your goal is fundraising, outreach, or just a bit of fun, a well-crafted chance drawing can help your mission shine.
Looking to make your next event even easier to manage? DonorPerfect’s event management tools can help you streamline registration, simplify payment processing, and keep your attendees engaged from start to finish.
1. Do I need to register my prize drawing with my state?
2. How can I ensure my prize drawing is fair?
3. What are some inexpensive prize basket ideas?
4. How can I increase participation in my prize drawing?
5. Can businesses donate prizes for my prize drawing?
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