When I first read about the idea, I thought it would be great for our carnvial/auction. After some research, I found that in Texas, you can raffle off most anything, EXCEPT money. Bummer!
We do 50/50 raffles at many of our events. I don't think you need to worry about tax implications.
Dear CB: A 50/50 is when you sell prenumbered tickets at, say, $5 per ticket. Out of the $5, 50% ($2.50) goes to the house and the other 50% ($2.50) is raffled off to (usually) one winner - like a lottery.
So if you sell 100 tickets @ $5 each, the organization running the event gets $250 and the winner of the raffle gets the other $250.
Only thing I would worry about would be any regulations on doing a lottery type raffle. Some areas really frown on that. Otherwise, I think if its possible I would do it because I love 50/50 raffles they are quick easy money!