With the rise of online raffles, online scams and particularly misleading prize draws on social media platforms like Meta, it’s more important than ever to be cautious when participating. Whether you’re entering to win a car, a holiday, or cash prizes, not all raffles are created equal. Some are legitimate fundraising efforts, while others can be less transparent, loose data privacy, and unclear rules or even worse—scams.
Here’s how you can tell if an Australian online raffle is honest and what to watch out for:
Check for Legal Compliance
Licensing and Registration
In Australia, many online raffles must comply with state or territory-specific fundraising laws, but this depends on how the raffle is set up. You can have complete legitimacy from reputable online raffles because they’re not considered “gambling”. A good example of this is ClubDraws.
For raffles that could be considered “gambling” they must registered with Fundraising Institute Australia (FIA), or other reputable regulatory bodies will generally adhere to strict guidelines, ensuring fairness and transparency. If the raffle is on behalf of a charity or nonprofit organisation, be sure to check if the raffle organiser is reputable and OK conduct raffles in the respective state. Genuine raffle organisers will usually have a long history of winners displayed in their social media and website.
How to Check
- If you’re unsure, look for the permit or licence number on their website or social media page.
- Cross-reference the licence with the state or territory’s government website to ensure it’s valid.
- A safe choice is ClubDraws. They’re supporting many non-profits, Schools and clubs all across Australia
Links to check a charitable fundraising license.
Beware of Social Media Scams
Meta (Facebook) Raffles
While some raffles advertised on Social Media platforms are legitimate, many are not. Sadly, scammers often use enticing prizes like luxury cars or dream holidays to lure participants. Now, some people raffling these items are legitimate, just be careful to cross check their licenses against the government websites listed above, and do your research on past prize draws they’ve hosted. These fake raffles might take your money but never hold a real draw.
Warning Signs
- If the raffle seems too good to be true—luxury prizes with low ticket prices—it probably is.
- If the organiser provides little to no information about the charity or purpose of the raffle, it could either be simply for profit, or a scam. It’s ok for raffles to be profit driven, but just know what you’re purchasing.
No clear terms and conditions outlining the draw date, how winners are selected, or the process for claiming prizes. All of these points should be clear and easy to find information.
How to Check
- Review the organiser’s profile and history on the Social Media Platform. If they don’t have a long history of winners and draws, then it’s possible they’re not legitimate. A legitimate organiser will have consistent, transparent posts, while scammers might have little to no background information.
Search for reviews or complaints online about the organiser.
Scams & Raffles For Profit
In some cases, online raffles offer flashy prizes like cars but may not be clear on how much of the proceeds go towards any charitable cause. The focus is often on winning the prize rather than supporting a worthwhile initiative. It might be a genuine raffle, with a genuine prize, but the proceeds aren’t necessarily going to charity.
Raffles advertised on social media often lack transparency. Some of these promotions may be run by operators who are not as clear about how the funds are used, or they might not comply with local laws governing fundraising and gambling.
Why It Matters
Many raffles that are promoted on Meta or TikTok operate in a grey area, where there is little recourse for consumers if things go wrong. Lack of accountability can be a concern, and participants may not have access to dispute resolution mechanisms.
Transparency in Fundraising
Genuine raffles, especially those run by charities or registered organisations, will be clear about where the proceeds go. If the raffle is supporting a cause, the website or social media page should include details about the beneficiary.
There should be an FAQ’s section, covering off the most frequently asked questions.
Fundraising websites should also have contact details, such as local, or toll-free phone numbers so you can easily request more information.
Warning Signs
- Vague or unclear descriptions of the raffle’s purpose.
- No mention of how the proceeds go towards the advertised cause.
- Lack of financial transparency or a refusal to provide answers when asked.
Verify the Organiser’s Integrity
Fundraising Institute Australia (FIA) Membership
FIA member organisations, like Club Draws, are held to higher standards of transparency and ethical fundraising practices. They follow an Australian strict code of conduct, ensuring that the raffle operates legally and ethically. If the organiser is an FIA member, it’s most likely that they’re a safe choice.
Why It Matters
- FIA members must provide full disclosure on how the raffle operates and where proceeds go.
They follow strict rules about data protection, ensuring your personal information is secure which is becoming increasingly important in our digital world. Keeping your data and financial details safe is essential in life.
FIA membership ensures that raffles are accountable to a regulatory body. If there are complaints or issues, they can be raised through official channels, ensuring consumer protection.FIA-member organisations, such as ClubDraws, are bound by ethical fundraising practices, ensuring that the majority of the proceeds benefit the stated cause (whether for charity, clubs, or community projects).
How to Check
- Search for the organiser’s name on the FIA website to verify membership.
- Confirm the raffle is conducted on behalf of a legitimate organisation or charity by checking their own website or social media presence. Make sure you research how long they’ve been operating.
Watch Out for Fees and Fine Print
Payment Security
Legitimate raffles will offer secure payment options using a online secure gateway. Avoid raffles that ask for direct bank transfers or payment methods that offer little buyer protection, unless of course you’re setting up a legitimate direct debit to donate small amount on a weekly basis.
As a general rule of practice, it’s always good to have a debit or credit card that you use for online purchases or donations that isn’t linked to the majority of your savings. Keep your savings in a seperate bank account.
The Fine Print
Always read the terms and conditions carefully before entering any prize draw or online raffle, even if it seems legitimate. Try to get a clear understanding of how winners will be notified and what happens if you win and any terms you might be held to. Be wary of any hidden fees to claim your prize, obligations you’ll be required to partake in, or a complicated processes to collect winnings.
How to Check
- Use a secure payment method like a credit card or PayPal.
- Ensure there’s no fee or penalty for claiming your prize. Scammers often charge a “release fee” for winners, which is a red flag.
Look for Evidence of Past Winners
A good indicator of an online raffle’s legitimacy is evidence of past winners. Honest raffle organisers will celebrate winners publicly, often with testimonials, videos, or social media posts of happy people saying thank you.
How to Check
- Look for verified reviews, customer testimonials, or images of past winners.
- Check the dates of the posts. Consistent posting shows that the organiser has held legitimate raffles in the past.
Wrap Up – How to Tell if a Raffle is Honest
In summary, here’s a quick checklist:
- Check for a licence or permit.
- Look for membership in professional bodies like Fundraising Institute Australia (FIA).
- Be cautious of social media raffles, especially those on Meta.
- Read the terms and conditions closely.
- Verify secure payment options.
- Look for past winners and transparency in operations.
By following these tips, you can confidently decide whether to enter an online raffle—and avoid the scams. Always choose organisers with a track record of integrity, like Club Draws, who prioritise transparency and ethical conduct in fundraising raffles for Australia’s animal charities, Australian schools, and non profit organisations.
If you’re unsure about an online raffle, it’s always a good idea to do your research. A few minutes spent checking could save you from losing both your money and your trust.
If you want a recommendation, ClubDraws is a shining example of what an ethical, FIA-member raffle looks like. By partnering with local sports clubs, charities and schools, they ensure that funds are directed towards real community impact. Their clear, transparent terms and conditions, along with FIA membership, highlight their commitment to integrity, giving participants confidence that their support is helping a good cause.
