Who Is Eligible to Run a Raffle in Canada?

The Short Answer

Not every nonprofit or community group is eligible to run a raffle in Canada. Raffle eligibility is determined by provincial gaming regulators, and eligibility depends on an organization’s purpose, governance, and who ultimately benefits from the proceeds — not simply whether the organization is incorporated or operates on a nonprofit basis.

Confirming eligibility before applying for a raffle license is one of the most important steps in running a compliant raffle.

Why Eligibility Is Commonly Misunderstood

Many organizations assume that if they are a nonprofit, volunteer group, sports team, or community association, they are automatically eligible to run a raffle. That assumption is often incorrect.

In Canada, eligibility is assessed independently of incorporation, fundraising intent alone is not sufficient, and private benefit is a key disqualifying factor. Regulators focus on substance, not labels.

How Regulators Determine Eligibility

While eligibility rules vary by province, regulators generally assess eligibility using similar principles. Key questions include what the organization’s primary purpose is, who benefits from the raffle proceeds, whether there is a recognized charitable or community benefit, how the organization is governed and controlled, and whether proceeds are used for public benefit or private advantage.

Organizations Commonly Considered Eligible

Depending on the province, regulators often approve raffles run by registered charities, charitable foundations, community service organizations, and volunteer-run associations with a clear public or charitable mandate.

Nonprofit Status Does Not Guarantee Eligibility

Adult Recreational Sports Teams

An adult men’s hockey team may be incorporated as a nonprofit, but if raffle proceeds are primarily used to pay player fees, cover travel or equipment costs, or benefit team members directly, regulators will generally find the organization ineligible. The issue is private benefit, not nonprofit status.

Youth and Community Sports: Ownership and Control Matter

Youth and minor sports organizations are often assumed to qualify automatically, but governance structure is critical. Community-owned, volunteer-run organizations operating for public benefit may qualify, while teams owned or controlled by an individual may not.

Why For-Profit Organizations Cannot Run Raffles Directly

For-profit businesses are generally not permitted to run raffles in Canada. This is why professional sports teams operate raffles through separate charitable foundations that are legally distinct, meet eligibility requirements, and hold raffle licenses in their own name.

When Charitable Organizations Pay Costs to Teams or Facilities

Even when a charitable organization is eligible and licensed, financial arrangements with teams or facilities can raise regulatory scrutiny. Examples include stadium rental fees, staff support, or purchasing blocks of tickets used for community programs.

These arrangements are not automatically prohibited, but regulators will assess whether charges reflect fair market value, whether raffle proceeds primarily support charitable purposes, and whether arrangements are transparent and documented.

The Core Eligibility Test Regulators Apply

Across provinces, regulators consistently return to one fundamental question: who ultimately benefits from the raffle proceeds? Public or charitable benefit supports eligibility, while private or commercial benefit may result in denial or scrutiny.

What Happens If an Ineligible Organization Applies?

If an organization applies and is found ineligible, regulators may reject the application, require restructuring, or deny future applications. Confirming eligibility early helps avoid delays and compliance issues.

Frequently Asked Questions

Can any nonprofit organization run a raffle?

No. Eligibility depends on charitable or recognized community benefit.

Can adult sports teams run raffles?

Generally no, if proceeds primarily benefit players or team operations.

Do youth sports teams automatically qualify?

Not always. Governance, ownership, and use of proceeds are key factors.

Can a team charge a charitable foundation for stadium use?

Sometimes. Reasonable, fair-market expenses may be permitted but are often scrutinized.

Final Word

Eligibility is the foundation of every legal raffle in Canada. Understanding eligibility, allowable expenses, and regulatory expectations protects both the charitable organization and the integrity of the raffle.