For the state of Ohio, if you are 501(c)(3) it is legal to have a raffle. It does not say anything about money being raffled but it does say that everything must be raffled and a few other guidelines.
Thanks for the information. I live in California and it did not specifically state anything about a monetary award. I will have to research this further.
I just asked about this last week and was told in Missouri, if you sell a raffle ticket through or to benefit a school or not for profit, everyone who purchases a ticket must get something for that ticket. If you gave each person a lollipop or pencil, viola, it is then ok to do. We havent tried it yet, but are considering it.
In Texas "raffles" are also considered a form of gambling and a raffles with money as the prize are illegal. As Nevadamom said, you'll need to check your own state's laws. I've never had much luck getting accurate information on this type of stuff from the school district or related groups. I've found it's better to check with the agency that governs gaming or the Attorney General's office in whatever state you happen to live.
Just for comparison, here's info from Texas and California:
In Nevada, this would be looked at as a form of gambling and wouldn't be allowed. Check with your state Board of Education to find out the rules in your state.