The Supersized Guide to Sweepstakes for Nonprofit Fundraising

Just like a sweepstakes, this guide for nonprofits is Enter to Win!

In the quest for innovative and effective fundraising campaigns, many nonprofits have turned to the enchanting world of charity sweepstakes to shake up their strategies. This vibrant fundraising method not only excites potential donors but also creates a thriving community around your cause. In this extensive exploration, we will uncover the essential elements, exciting benefits, and practical steps involved in holding a sweepstakes for nonprofit fundraising.

And away we go!

The Allure of Sweepstakes

The Big Benefits of Hosting a Sweepstakes

01. Sweepstakes Are Risk-Free Through Curated Consignment

While raffles and sweepstakes have many key differentiators, the most important in the world of nonprofit fundraising is that online sweepstakes can be strategically designed to reduce your financial risk to zero as they require no upfront costs nor documentation of prize ownership before the sweepstakes begins. Like our travel packages, sweepstakes prizes can be purchased on consignment!

If you're unfamiliar with consignment as it applies to sweepstakes, this example will help. Let's say your community garden nonprofit is holding a sweepstakes and you want to offer a prize that speaks to your donor base. You find a vendor, a local hardware store, that will source you an electric lawnmower for the sweepstakes and you make an agreement that the vendor will reserve that lawnmower for the duration of your sweepstakes. Your nonprofit then internally sets a minimum amount of money that must be raised in order for the mower to be awarded to the winner. The minimum amount should always exceed the retail value of the prize in order to reach your fundraising goals or cover your costs. If at the end of the sweepstakes entry period your minimum has been met, you purchase the mower from your vendor and the winner of the draw receives it as their prize while your organization takes home the difference. If at the end of the entry period your minimum has not been met, the vendor is free to sell the mower as normal and your organization must decide on an alternate prize for your winner. Industry experts suggest an alternative cash prize taken from a percentage of what you raised during the sweepstakes. Not only does this mean you still raised funds for your cause but it is often enthusiastically received by understanding donors.

02. Sweepstakes Increase Visibility and Awareness

A well-publicized sweepstakes can significantly elevate your nonprofit’s visibility, allowing you to reach a broader audience. By leveraging social media, email campaigns, and local press, you can create a vibrant buzz around your cause. This is an exciting opportunity to educate potential donors about your mission and showcase the tremendous impact of their contributions. 

A sweepstakes also gives you the creative freedom to showcase your nonprofit’s personality and message enthusiastically. You can design eye-catching graphics, compose charming narratives, and craft enticing prizes that resonate with your audience. All these elements contribute to memorable branding that creates a long-lasting impression.

03. Sweepstakes Put the Fun in Fundraising

Of course, one of the most significant benefits of hosting a sweepstakes is the potential for substantial financial growth. By charging an entry fee, you can directly generate funds for your nonprofit. Additionally, participants may be encouraged to donate beyond the entry fee, broadening your financial base.

The Essential Steps for a Successful Sweepstakes

Now that we've established the numerous perks of fundraising through sweepstakes, let’s delve into the essential steps required to launch a captivating and effective campaign.

01. Determine the Purpose

The first crucial step in organizing a captivating sweepstakes is to establish a clear, passionate purpose. Whether it’s creating awareness about a specific project, funding a recurring program, or building general operating funds, aligning the sweepstakes with a substantial cause is paramount. The more compelling and impactful the cause, the more participants will feel motivated to engage.

02. Choose Irresistible Prizes 

An exciting sweepstakes hinges on the allure of enticing prizes that ignite interest and enthusiasm. It is prudent to select prizes that resonate with your target audience. Consider what they value or enjoy, ensuring that participation feels genuinely rewarding. Whether it be luxury experiences, exclusive items, or high-demand merchandise, a well-chosen prize not only boosts participation but also reflects the values of your nonprofit.

Potential prize ideas include:

• Experiential Rewards: Unique experiences can be incredibly attractive. Think about exclusive dinners, unforgettable travel opportunities, or once-in-a-lifetime adventures. Check out our Experiences for over 250 world-class travel packages for our world-changing clients to place for free at auction or as sweepstakes prizes.
• Gift Baskets: Curate captivating gift baskets with theme-related items, local treasures, or vouchers from popular businesses.
• Memberships or Subscriptions: Offer memberships to community organizations, local attractions, or subscriptions to popular magazines.
• Unique Merchandise: Branded or limited-edition merchandise like apparel, artwork, or accessories can create lasting connections to your cause.

03. Structure the Sweepstakes Rules

While raffles might ruffle the feathers of certain states that prohibit them even for nonprofit fundraising due to their status as Gaming, sweepstakes are regulated by federal law and there are no registration or licensing requirements. Additionally, there are no restrictions on use of funds which makes fundraising through sweepstakes a breezier experience for nonprofits who don’t have the time or resources to hire or train a gaming manager needed for raffles.

Now that you know the rules that apply to you and your organization, developing clear and transparent rules for your donor base is essential for the integrity of your sweepstakes. Detailed guidelines can help participants understand how to enter, the criteria for winning, and any eligibility requirements. This meticulous attention to detail can build trust and enthusiasm among potential participants.

Some key elements to include in your rules might be:

• Eligibility: Specify who can enter, such as age restrictions or geographic limitations.
• Entry Methods: Clearly outline how participants can enter (e.g., online entries, email submissions, or in-person entries).
• Entry Fees: Define whether there will be an entry fee and how the funds will benefit your organization.
• Prize Details: Describe the prizes, including any restrictions or conditions.
• Selection Process: Explain how winners will be chosen, whether through random drawings or other methods.
• Deadline: Set a clear end date for the sweepstakes to create urgency in your marketing.

Navigating the legal landscape of sweepstakes can be tricky. Each state has distinct regulations governing sweepstakes, making it essential to be compliant. It is advisable to consult an attorney specializing in nonprofit law to ensure that all legal requirements are met.

Key legal considerations to include are:

• No Purchase Necessary: To qualify as a legitimate sweepstakes, participants must be able to enter without making a monetary contribution. This requirement ensures that the sweepstakes is not classified as gaming. But don’t worry — as long as you actively promote your sweepstakes, experience has proven that generous donors will outnumber free entrants. Because of the freedom that sweepstakes offer nonprofits, many organizations are switching from a raffle model to a sweepstakes model and seeing increased raises and growth in their donor base. 
• Official Rules: Clearly outline the rules of the sweepstakes, including eligibility, duration, and how winners will be chosen.
• Taxes: Keep in mind that winners may be responsible for taxes on their prizes, which is an essential detail to communicate transparently.

04. Create an Engaging Marketing Campaign

One of the major benefits of holding a sweepstakes over a raffle is that sweepstakes can be marketed online while federal regulations prohibit raffles from being marketed across state lines, meaning your raffle cannot be shared on websites or social media. Selecting a sweepstakes means supersizing your outreach to potential donors with no restrictions.

With the rules in place and enticing prizes decided, it’s time to craft an engaging, multichannel marketing campaign to promote your sweepstakes! This creative effort should evoke excitement, urgency, and enthusiasm while encouraging participation.

Engaging Content Creation means two things:

• Dynamic Storytelling: Content is king in today’s digital age. Share visually striking stories and testimonials about the cause your nonprofit supports. Narratives about real people who have benefited from your services can inspire potential participants to join the cause wholeheartedly.
• Utilize Eye-catching Visuals: Create alluring graphics and videos showcasing not only the prize but also the impact of your organization. High-quality visuals can capture attention and evoke emotions, motivating participants to get involved.

Here are some engaging strategies to amplify your marketing efforts:

• Utilize Social Media: Leverage platforms like Facebook, Instagram, and Twitter to spread the word about your sweepstakes. Create visually stunning posts, share participant testimonials, and encourage sharing to extend your reach.
• Email Campaigns: Send enticing email blasts to your subscriber list, highlighting the captivating prizes and thrilling mission behind the sweepstakes. Foster a sense of urgency by emphasizing the deadline to participate.
• Collaborate with Influencers: Identify local influencers or key community figures who resonate with your nonprofit's mission. Encourage them to share your sweepstakes with their audience, amplifying your reach and impact.
• Create a Landing Page: Design a visually appealing and easily navigable landing page on your website that provides all necessary information about your sweepstakes. Include a direct link to enter and captivating visuals that grab attention.

05. Manage Entries and Engage Participants

As the sweepstakes unfolds, it’s essential to actively manage entries and engage with participants. A glowing, warm, and responsive presence will enhance the experience for everyone involved.

Encouraging donations with creativity and compassion is key:

• Entry Fee Structure: Determine the optimal entry fee to maximize participation while providing valuable support to your cause. Sliding scale fees can allow individuals of varied financial abilities to contribute, ensuring inclusivity.
• Bonus Entries for Donations: To further incentivize contributions, consider offering bonus entries for larger donations. This tactic can turn a simple sweepstakes into an exceptional fundraising platform, doubling as a motivation for increased generosity.
• Social Media Sharing: Encourage participants to share the sweepstakes on social media for additional entries. This not only amplifies exposure but also cultivates a sense of community around your cause.
• User-Friendly Platforms: Selecting a reliable platform for your sweepstakes is paramount. Consider utilizing online tools that simplify entry management and data collection. User-friendly interfaces can enhance participant experience, fostering positive feelings toward your nonprofit.
  • Track Entries: Use software or a spreadsheet to track entries securely and maintain confidentiality. This meticulous approach can help ensure a fair selection process.
  • Engagement Campaigns: Regularly engage participants through updates about the sweepstakes and heartfelt messages showcasing your nonprofit’s progress. Sharing behind-the-scenes glimpses of your work can deepen connections with participants.
  • Interactive Elements: Consider integrating interactive elements, such as polls or quizzes, to keep participants engaged and excited about your cause.

06. Execute an Exciting Winner Announcement

One of the most thrilling moments of a sweepstakes is the announcement of the winners. Create a memorable and celebratory atmosphere around this event, as it reflects the spirit of your nonprofit and the excitement surrounding your sweepstakes.

You can announce winners through various channels such as:

• Live Event: Host a live event, either in-person or virtually, where you reveal the lucky winners. Consider combining this with additional festivities or a small fundraiser to keep the momentum alive.
• Social Media Celebration: Take to your social media platforms to announce the winners with vibrant graphics, heartwarming stories, and, if possible, live interviews with the winners.
• Personalized Communication: Send personalized congratulatory emails to winners along with heartfelt thank-yous for participation. This gesture fosters goodwill and encourages future engagement.

07. Express Your Gratitude and Share Impact

Following the sweepstakes' conclusion, it’s vital to express gratitude to all participants, as their involvement contributes to your nonprofit's mission and goals.

Consider the following gratitude strategies:

• Thank You Messages: Send personalized thank-you notes to all participants and donors, acknowledging their support and sharing how their contributions will make a meaningful difference.
• Impact Reporting: Provide participants with updates on the impact of their involvement, detailing how their contributions will help further your mission. This transparent approach inspires excitement and anticipation for future initiatives.
• Future Engagement: Invite participants to stay connected and engaged with your nonprofit. Share upcoming events, volunteer opportunities, or future fundraising efforts to keep the spirit of giving alive.

08. Reflect to Improve

Once the exhilaration has subsided, it’s time to analyze the campaign. Sweepstakes have consistently shown excellent year-after-year growth in both funds raised and audiences reached so it's valuable to invest time and brain power into looking back on your campaign with the next one in mind.

• Post Sweepstakes Evaluation: Gather feedback from participants and volunteers to identify areas for improvement. What strategies were successful? What fell short? Reflection is key to evolving and growing for future endeavors.
• Build on Success: With each sweepstakes, your organization gains valuable experience and insights. Use the lessons learned to craft even more engaging and impactful future campaigns. Every successful sweepstakes adds depth to your organization’s storyline.

The Lasting Impact of a Sensational Sweepstakes

Hosting a captivating sweepstakes for nonprofit fundraising is an exuberant and dynamic endeavor that can yield substantial benefits for your organization. When executed thoughtfully and creatively, sweepstakes can amplify your nonprofit’s visibility, enhance donor engagement, and contribute to meaningful fundraising.

By following the essential steps outlined in this guide, from establishing a passionate purpose to generating excitement through engaging marketing strategies, you can create a memorable and impactful experience for all involved. So unleash your creativity and watch your nonprofit flourish through the power of a captivating sweepstakes.