Auctions & Raffles | Alumni Association of the University of Michigan                            

Considerations for Organizing Clubs

Please contact the Association's global engagement team prior to planning a raffle, as an unauthorized or improperly administered club raffle could affect the ability of other clubs and the Association to obtain a raffle license in the future. Additionally, because laws and regulations regarding raffles vary from state to state, you should consult your professional advisors and your state's gaming/lottery office for the rules in your state.

Most states require an organization to obtain a gaming license to conduct a raffle. In Michigan, for instance, a club must apply for a license if it will be raffling off items that are more than $100 in value. Licenses generally take 6-8 weeks to process, and failure to obtain one may result in a misdemeanor charge.

Additionally, per USPS regulations, your club cannot promote a raffle or sell or deliver raffle tickets via U.S. mail.

Your club must maintain detailed financial records of all activity. Most states require that you submit a financial report at the end of the raffle.

The Alumni Association cannot take payment for your raffle tickets online.  Online purchasers could be located in any state and laws and regulations regarding raffles vary from state to state.

Considerations for Raffle Donors

Sometimes, in lieu of a monetary gift, alumni will provide a gift-in-kind donation to the club for club use, including for use as a raffle prize. Read more about rules regarding the tax implications of gifts in kind.

Considerations for Raffle Participants

When a person purchase one or more raffle tickets, they are purchasing the "chance to win" the raffle. Because this chance is considered value, a raffle ticket purchase is not tax deductible.