House raffle brings charity back into profit

12 August 2008
Posted in Organizing House Raffles

The Ocean Institute in Dana Point recently ran a successful house raffle offering players a chance of winning a $1.2 million house in return for a $150 raffle ticket. According to this review of their latest financials, it appears that this fundraiser single handedly helped them return into the black, after spending more than it earned in two of the three years examined.

This article on the Orange County's OC Watchdog provides some interesting insight into the finances of the experiential ocean educational organization between 2004 and 2007. After incurring a deficit as high as $732,345 in 2004, a house raffle was organized in 2006 to help raise much-needed funds.

The property raffle cost a total of $1.8 million to run, including purchasing the dream home. After generating total raffle ticket sales of $2.6 million, this helped the Ocean Institute clear a net profit of $845,545 with this single promotion. This, combined with efforts to save costs generally, allowed the organization to generate a surplus of $594,577 in 2006.

The current Laguna Beach Million Dollar Home Raffle is giving away a $1.2 million Laguna Beach home, offering a sweeping view over the ocean from the large windows of its living room and large open deck. In 2006, Laura Melnick from Irvine won the top prize and chose to walk away with the cash alternative. In 2007, Audrey Morgan of San Juan Capistrano also opted for the million dollar cash prize.

This provides an interesting example how, if done successfully, organizing regular house raffles can provide non-profit organizations with an effective source of funding.

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