Raffle Prizes

The prizes offered in a raffle are governed by the type of raffle being run. Incidental lotteries cap the amount that may be deducted from proceeds for prizes at £500. Small society lotteries allow prizes up to £25,000 in individual value. Cash prizes, alcohol, and high-value donated goods each carry additional considerations under UK law. The prize structure also has a direct effect on ticket sales — the prizes are the primary reason people buy tickets.

Prize Limits by Raffle Type

The financial rules governing prizes differ significantly between raffle categories.

For incidental lotteries, the £500 limit applies to the total amount deducted from ticket sale proceeds to fund prizes — not to the total value of all prizes. A school fair raffle with £300 in purchased prizes and £2,000 in donated prizes is compliant, because only £300 is deducted from proceeds. The donated goods cost the society nothing and therefore do not count against the limit.

For small society lotteries, the £25,000 limit applies to the retail or market value of any single prize. A car donated to the society and offered as a raffle prize must be valued at its market price. If that value exceeds £25,000, the raffle cannot operate as a small society lottery — a Gambling Commission licence is required.

Cash Prizes

Cash prizes are permitted in all raffle types, subject to the prize limits above. There is no restriction on offering cash rather than goods, and cash prizes are not subject to income tax or capital gains tax for the winner. Lottery winnings are exempt from UK taxation regardless of amount.

For the organising society, offering cash prizes simplifies administration — there is no sourcing, storage, or display required. However, cash prizes are drawn directly from ticket sale proceeds, which reduces the net amount available for the society's purposes. A society offering a £500 cash prize from a draw generating £2,000 in proceeds has allocated 25% of gross revenue to a single prize before expenses are considered.

The 20% minimum to good causes (for small society lotteries) must still be met after all prize and expense deductions. Societies offering large cash prizes should calculate the impact on the good causes percentage before committing to the prize structure.

Alcohol as Prizes

Alcohol is one of the most common raffle prize categories — particularly in hampers, gift sets, and pub or club raffles. Including alcohol as a raffle prize is permitted, but the organiser must be aware of the interaction with the Licensing Act 2003.

If alcohol is sold at an event, the event requires a premises licence or a temporary event notice (TEN). Whether a raffle constitutes a "sale" of alcohol is a matter of legal interpretation. The raffle ticket is a payment for entry into a draw, not a direct purchase of alcohol. In practice, most enforcement bodies treat raffle alcohol prizes as incidental to the event rather than as a sale — but the position is not definitively settled.

The safest approach at events without a premises licence or TEN is to include alcohol as one element of a broader prize (a hamper containing food and drink) rather than offering individual bottles as standalone prizes. At licensed premises — pubs, clubs, restaurants — the premises licence typically covers alcohol offered as raffle prizes.

Age restrictions apply. The legal drinking age in the UK is 18, and it is an offence to supply alcohol to a person under 18. If a raffle winner is under 18, the alcohol prize must not be given to them. The raffle terms should specify that alcohol prizes will only be awarded to winners aged 18 or over, and that an alternative prize of equivalent value will be offered to underage winners.

Prize Categories

Raffle prizes fall into several broad categories, each with different cost, logistics, and appeal characteristics.

Donated goods and vouchers. The most cost-effective category. Local businesses, supermarkets, restaurants, and national brands with community programmes donate goods, gift vouchers, or experiences. Donated prizes do not reduce the society's net proceeds, making them the most efficient way to offer high-value prizes on a low budget.

Purchased goods. Bought by the society specifically for the raffle. These reduce net proceeds directly. Common purchased prizes include electronics, household items, and gift sets. The cost must be factored into the budget and the 20% good causes calculation for small society lotteries.

Experiences. Meal vouchers, spa days, activity days, theatre tickets, and similar. Often donated by businesses or purchased at a discount. Experiences have high perceived value relative to their cost, particularly when they involve well-known local venues.

Hampers. Assembled from donated and purchased items — food, drink, household products, treats. Hampers are versatile and scalable: a small hamper costs £10–£20 to assemble from donated goods, while a premium hamper can have a perceived value of £100+. Hampers are a common raffle prize format across school, church, and charity events.

Cash. Straightforward to administer but drawn directly from proceeds. Most effective as a headline prize alongside donated goods for secondary prizes.

Sourcing Prizes from Businesses

Approaching local businesses for prize donations is standard practice for community raffles. The response rate is higher when the approach is structured, professional, and clear about the benefit to the donor.

A written request — by letter or email — is more effective than a verbal approach. The request should include:

• the name and purpose of the organising society
• the event details (date, venue, expected attendance)
• how the donor will be acknowledged (on tickets, posters, at the event, on the society's website or social media)
• a deadline for responding
• contact details for follow-up

Businesses are more likely to donate when they can see a clear connection to their customer base. A local restaurant donating a meal voucher to a school PTA raffle gains visibility among local families — a relevant audience. A national brand may have a formal community grants or donations programme with an online application process.

The timing of the approach matters. Businesses receive the most requests in November and December for Christmas events. Approaching in September or October for a December raffle, or well in advance for summer events, improves the response rate.

Donated prizes must be recorded — what was donated, by whom, and its estimated value. This information is needed for the lottery return (where prize values are reported) and for acknowledging donors appropriately.

Prize Display and Presentation

At events, the physical display of prizes is closely linked to ticket sales. In practice, prizes displayed visually near the ticket sales point tend to generate more sales than prizes that are not visible to buyers.

Each prize should be clearly numbered and labelled with a brief description. If the prize is a voucher or experience rather than a physical item, a printed card or certificate displaying the prize details serves the same purpose.

For small society lotteries where tickets are sold in advance, communicating the prize list through the society's usual channels (newsletter, social media, noticeboards) serves the same function as physical display. The prize list should name the prizes, state their approximate values, and name the donors where appropriate.

Unclaimed and Returned Prizes

Not every winner collects their prize. The society's terms and conditions should specify what happens when a prize is unclaimed — typically after a holding period of 28 to 30 days. Common approaches include re-drawing, retaining the prize for the society's next event, or returning the item to the donor.

The promoter should make reasonable efforts to contact the winner using the details on the ticket stub. Multiple attempts through different channels (phone, post, email) demonstrate that the society acted fairly. A record of all contact attempts should be kept.

For full guidance on handling unclaimed prizes, see Unclaimed Prizes.

Questions about raffle prizes? See our help centre.

Last reviewed: February 2026