If you're planning to hold a raffle to raise money for a school project, church repairs, medical assistance for a neighbor, a barangay improvement, or any other worthy cause in the Philippines, you’re not alone. Thousands of ordinary Filipinos, parent-teacher associations, religious groups, NGOs, and community organizations do this every year. However, because a raffle combines payment for a ticket (consideration), an element of chance, and the awarding of prizes, Philippine law treats it as a regulated activity. Doing it without the proper authorizations can expose organizers to charges of illegal gambling, fines, or even criminal liability under the Revised Penal Code.

This article explains exactly what permits are typically required for raffle fundraising, which government agencies are involved, the practical step-by-step process, required documents, realistic timelines, tax considerations, and the most common pitfalls that trip up well-meaning groups. It focuses on the situations ordinary people and small organizations actually face.

Raffle Fundraising and Philippine Law

A raffle for fundraising usually involves selling numbered tickets to the public, holding a random draw, and giving prizes while directing the net proceeds to a charitable, educational, religious, or community purpose.

Under the Revised Penal Code (Articles 195–199, as amended by Presidential Decree No. 1602), unauthorized games of chance with these three elements can constitute illegal gambling. At the same time, the law and regulations allow such activities when they serve legitimate public welfare purposes and are conducted under proper government oversight.

There is no single nationwide “raffle permit.” The requirements depend on how you structure the activity:

Pure charitable or community fundraising through ticket sales → primarily DSWD public solicitation rules + local government unit (LGU) permits.
Tied to selling products or services (sales promotion) → Department of Trade and Industry (DTI) rules may also apply.
Very large-scale, recurring, or online-heavy operations → possible Philippine Amusement and Gaming Corporation (PAGCOR) involvement (rare for typical small community raffles).

The Department of Social Welfare and Development (DSWD) regulates public solicitations for charitable or public welfare purposes under Presidential Decree No. 1564 (the Solicitation Permit Law) and its implementing rules, including DSWD Administrative Order No. 79, s. 2003 (Omnibus Rules on Public Solicitations) and supplemental guidelines such as AO No. 05, s. 2007. Selling raffle tickets to raise funds for a recognized charitable purpose is generally considered a form of public solicitation.

Local Government Units derive their authority from the Local Government Code of 1991 (Republic Act No. 7160). Many cities and municipalities require a Mayor’s Permit or special permit specifically for fund-raising activities, plus a barangay clearance.

Primary Permits Most Fundraising Raffles Need

DSWD Public Solicitation Permit

This is the key national-level permit when you are asking the general public to buy tickets and the proceeds (or a substantial part) will go to charity, education, health, or similar purposes.

When it is usually required: Ticket sales to the public, multi-barangay or multi-municipality coverage, or when the activity is clearly framed as charitable fundraising. Very small, closed-group raffles among members only (no public ticket sales) may fall outside this requirement, but most community fundraisers do not.

Who issues it: The DSWD Regional or Field Office that has jurisdiction over the area where solicitation will occur. For activities spanning multiple regions, coordinate with the appropriate DSWD office.

Typical requirements (confirm with the specific DSWD office as slight variations exist):

Duly accomplished application form
Certified true copy of SEC registration (for organizations) or other proof of legal personality
List of current governing board members with addresses, nationalities, and positions
Board resolution authorizing the fund-raising campaign, often including a pledge or commitment on the ratio of project expenditure versus administrative costs (commonly referenced around 70-30 in older guidelines)
List of authorized persons who will sell tickets or solicit
Endorsements from relevant agencies or the beneficiary institution/project, when applicable
Written commitment by the applicant or officers to be fully accountable for all funds generated

Fee: Approximately ₱500 (based on longstanding DSWD guidelines such as AO 14, s. 2007).

Processing time: Often a few working days to one week once documents are complete. Incomplete submissions cause delays.

After approval, you must comply with conditions such as truthful representation of the cause, proper accounting, and submission of a post-activity liquidation report.

LGU Permits (Barangay Clearance + Mayor’s or Special Fund-Raising Permit)

Almost every raffle that involves public ticket sales or a public draw event needs local government clearance.

Typical LGU requirements (these vary by city or municipality; check your local hall):

Letter-request addressed to the Mayor or Permits Office stating the purpose, beneficiaries, ticket price, number of tickets, expected proceeds, duration of selling, and draw details
Photocopy of SEC registration or equivalent organizational documents
Barangay clearance or endorsement
Sample ticket design or detailed mechanics
Sometimes police clearance for organizers or a list of ticket sellers

Many LGUs have a specific process titled “Permit to Conduct Group/Fund Raising Activities” or similar. Fees are usually modest but can depend on the scale of the activity or expected gross proceeds.

Why both DSWD and LGU? DSWD focuses on the charitable solicitation and proper use of funds nationwide. The LGU handles local public order, venue use (if any), and community-specific rules. Securing both provides the strongest compliance position.

Other Requirements That May Apply

DTI Sales Promotion Permit — Required under Republic Act No. 7394 (Consumer Act of the Philippines) and DTI Department Administrative Orders (such as DAO 10-02, s. 2010 and related issuances) when the raffle is used to promote the sale of goods or services. Thresholds and exemptions exist; small private raffles sometimes fall below certain prize-value triggers, but public sales promotions generally need DTI approval if chance is involved.
BIR Authority to Print (ATP) and tax compliance — Raffle tickets are not automatically BIR official receipts. However, many organizers obtain Authority to Print from their Revenue District Office (using BIR Form 1906 and related requirements) for accountability, especially when tickets are pre-numbered and serial-controlled. Prizes are subject to creditable withholding tax (commonly 20% on cash prizes or the fair market value of non-cash prizes above applicable thresholds under the National Internal Revenue Code). Consult your BIR RDO early.
PAGCOR — Standard small-scale charitable raffles by registered organizations rarely require PAGCOR licensing. The Supreme Court has upheld the authority of barangays to conduct certain community fundraisers (such as bingo) without national gaming permits when done under the Local Government Code for legitimate local projects. However, large-scale, recurring, or online raffles that resemble gambling operations can trigger PAGCOR jurisdiction. Unregistered online raffles have been subject to enforcement actions.

Step-by-Step Practical Guide

Define your raffle clearly. Write down the purpose, exact beneficiaries, ticket price, total tickets, prizes with realistic values, draw date/place/method, and how net proceeds will be used and accounted for. Be specific and truthful — this becomes part of your permit applications.
Confirm organizational requirements. If your group is not yet registered, consider SEC registration as a non-stock, non-profit corporation or foundation. This is usually necessary for DSWD and LGU applications and builds credibility.
Obtain internal authority. Pass a board or organizational resolution authorizing the raffle and designating responsible officers or ticket sellers.
Apply for DSWD Solicitation Permit. Prepare the full documentary requirements and submit to the appropriate DSWD office. Pay the fee and follow up.
Secure LGU permits. Start with the barangay, then proceed to the city or municipal hall’s permits or mayor’s office. Bring the DSWD documents if already approved (or apply in parallel).
Handle BIR matters. Ask your RDO whether Authority to Print is required for the tickets and how to handle prize taxation and reporting.
Print and distribute tickets only after permits are issued. Include permit numbers, organizer details, draw information, and a clear statement about the use of proceeds on the tickets and all promotional materials.
Maintain strict records. Track every ticket sold and unsold, all collections, itemized expenses (keep administrative costs reasonable), and the eventual distribution of net proceeds.
Conduct a fair, transparent draw. Use a neutral method, invite witnesses (DSWD or LGU representatives when possible, or independent observers and a notary for higher-value events), and document everything (minutes, photos, video).
Publish winners promptly through accessible channels (bulletin boards, newspapers, social media, or your organization’s website).
Submit post-activity reports. DSWD and LGU permits usually require a liquidation or terminal report within a set period (often 15–30 days or as specified) showing total collections, expenses, net amount turned over to beneficiaries, winner list, and supporting proofs. Failure to report can affect future permits.

Plan for at least 30 days (often longer for bigger events) from the start of document preparation until you can begin selling tickets. Processing times vary with agency workload and completeness of your papers.

Common Pitfalls and Scenarios

Many groups assume that “it’s for a good cause, so permits aren’t needed” or that a barangay-level activity is too small to matter. In reality, enforcement actions have targeted unauthorized raffles, including cases involving dozens of people arrested for operating without permits.

Frequent mistakes:

Starting ticket sales before any permit is issued.
Vague or changing mechanics after permits are granted.
Poor documentation of how funds were actually used.
Treating online ticket sales or social media promotions casually (higher PAGCOR risk).
Underestimating tax obligations on prizes.
Organizing as individuals instead of through a registered entity when the scale justifies it.

Realistic scenarios:

A PTA raffling appliances for a new classroom: Usually needs DSWD + LGU permits.
A church group selling tickets for building repairs: Often requires DSWD solicitation permit; some religious organizations have simplified pathways but still coordinate with LGU.
An OFW association or foundation helping a hometown project: Best handled through a Philippine-registered organization that secures the local permits.
A small “among-friends-only” raffle with no public sales: May need only minimal LGU clearance if there is any public event component, but crossing into public ticket sales changes the picture.

Foreigners or expats organizing directly face additional layers; partnering with or routing through a properly registered Philippine entity is the practical route.

Required Documents, Fees, and Timelines at a Glance

DSWD Public Solicitation Permit (charitable ticket sales)
Documents: Application form, SEC registration, board list and resolution, authorized agents list, endorsements/commitment letters.
Fee: ~₱500.
Timeline: Several working days to 1+ week with complete papers.

LGU Mayor’s / Fund-Raising Permit + Barangay Clearance
Documents: Letter-request with full details, organizational docs, barangay endorsement, sample tickets/mechanics.
Fees: Vary by LGU (often nominal to modest).
Timeline: Days to a couple of weeks depending on the locality.

BIR (if ATP needed)
Process via Revenue District Office using Form 1906 and supporting business registration documents. Consult your specific RDO.

Always verify the exact current checklist with the offices that will process your application, as requirements can be updated and local practices differ.

Frequently Asked Questions

Do I need a DSWD permit for a small raffle in my barangay or for my child’s school?
If you are selling tickets to the general public and the activity is presented as raising funds for education or community welfare, a DSWD Solicitation Permit is typically required alongside LGU permits. Very small closed-group raffles may not trigger DSWD rules, but LGU clearance is still prudent for any public-facing activity. Call or visit your local DSWD field office and municipal hall to confirm for your specific case.

Can a church hold a raffle without permits?
Religious organizations sometimes have exemptions or lighter processes under certain rules, but public ticket sales for fundraising generally still require coordination with DSWD and/or the LGU. Many churches obtain the permits to ensure full compliance and public trust.

Is it legal to run an online raffle or sell tickets through social media?
It is possible but significantly more complex. Online elements can bring the activity under PAGCOR scrutiny if it resembles unauthorized gaming. Small-scale activities with proper DSWD and LGU permits and transparent mechanics are more likely to stay within bounds, but seek specific guidance before launching any digital component.

What happens if I sell raffle tickets without permits?
You risk criminal charges for illegal gambling, administrative fines from DSWD, DTI, or LGU, and civil complaints from participants. Organizers and responsible officers can face personal liability. Recent enforcement actions have included arrests for unauthorized raffles.

How much do the permits cost?
Direct government fees are generally low (DSWD around ₱500; LGU fees vary but often modest). The main costs are time, document preparation, and compliance (printing, reporting, taxes on prizes). For typical community events, total direct fees are usually manageable.

Do raffle proceeds or prizes have tax implications?
Net proceeds used for legitimate charitable purposes by qualified non-profits are generally not taxable income. However, prizes are subject to withholding tax rules under the National Internal Revenue Code. Organizers commonly withhold and remit tax on prizes above threshold amounts. Raffle tickets may or may not require BIR Authority to Print depending on how they are used; ask your Revenue District Office.

Can foreigners or overseas Filipinos run a raffle fundraiser?
Direct organization by foreigners is complicated by registration and solicitation rules. The practical approach is to work through or donate to a Philippine-registered non-profit or community organization that handles the local permits and compliance. Prizes involving land or certain assets also carry ownership restrictions.

What must be printed on the tickets?
Include the raffle name and purpose, ticket price, serial number, draw date/venue/method, all relevant permit numbers, organizer contact information, and a clear statement on how proceeds will be used. This promotes transparency and meets permit conditions.

How far in advance should I apply?
Begin the process at least 30 days before you plan to start selling tickets. Some agencies move quickly with complete documents, but allow buffer time for corrections or additional requirements.

What if the main prize is a car, house and lot, or high-value item?
Higher scrutiny applies to prize valuation, ownership proof, taxes, and transfer procedures. Real property prizes involve extra steps with the Registry of Deeds and tax authorities. Build extra time and documentation into your plan.

Key Takeaways

Raffle fundraising for good causes is legal and widely practiced in the Philippines when supported by the proper permits — most commonly a DSWD Public Solicitation Permit for the charitable aspect and LGU (barangay + mayor’s) permits for local authority.
There is no one-size-fits-all “raffle permit.” Classify your activity (charitable solicitation vs. sales promotion) and secure authorizations from the relevant agencies before selling any tickets.
Preparation is everything: registered organization, clear written mechanics, board resolution, complete documentary requirements, and early application (ideally 30+ days in advance).
Transparency, accurate record-keeping, fair draw procedures, prompt winner announcement, and timely post-activity reporting to the issuing agencies protect both the cause and the organizers.
Rules exist to protect the public from scams and to ensure that the money raised actually reaches the intended beneficiaries. Taking the compliant route strengthens trust and maximizes impact.
When your situation involves online elements, high-value prizes, multi-location sales, or any uncertainty, contact the specific DSWD field office and LGU permits section that will handle your application, or consult a lawyer experienced in Philippine non-profit and regulatory matters for tailored guidance.

Doing it the right way takes more effort upfront, but it lets you focus on what matters most — successfully helping your community or cause without legal worries afterward.