This is one of those questions that must be guided by God’s Word and common sense because there is no chapter and verse that specifically addresses the many fundraising options available to churches today (silent auctions, firework stands, raffles, etc). The leadership of each church has freedom on how to decide these matters, but they should always make an informed, prayerful decision. 

Let’s start with raffles. Every now and then someone will ask if it would be possible to raise money with a fundraising raffle. The most helpful way to address this issue is to first understand what a raffle is. The State of California Penal Code Section 320.5 describes a raffle as a “scheme for the distribution of prizes by chance among persons who have paid money for paper tickets that provide the opportunity to win these prizes.” In order to protect against a raffle being considered an illegal lottery, it has to be operated in-person by a registered charity or non-profit organization and at least 90 percent of the profit from the raffle must go “directly to beneficial or charitable purposes in California.” Religious organizations do not have to report the income from raffles, but all other charities and nonprofits have specific guidelines for registering and reporting raffles with the Attorney General’s office. 

The fact that the state of California includes raffles in their penal code should give a pretty good hint about the wisdom of churches using them. As Christians, we are to be “above reproach,” which means “not being a lover of money.” (1 Timothy 3:2,3) We should always prefer to seek an income by good, honest work, which means avoiding games of chance and gambling (1 Thessalonians 5:22, 2 Thessalonians 3:10-12, Hebrews 13:5). The fact that the California penal code includes raffles as a game of chance makes it clear that this method of fundraising should be avoided by churches. 

Silent or live auctions do not involve lotteries, but they are still regulated by the state. In this case I would recommend seeking legal advice regarding sales tax and the need for each church to receive a California Seller’s Permit. This website has some helpful information www.fplglaw.com/insights/california-charity-auctions. Silent auctions can be effective fundraisers because generous donors often give items to the church that can then be sold to raise funds for the church. Both the party donating the items and those buying them need to have documentation to prove that the church is raising funds with integrity. 

It is important for churches to seek wise financial advice regarding all forms of fundraising because there are many traps that can have a negative impact on the testimony of the Church. Jesus told his disciples, “I am sending you out as sheep in the midst of wolves, so be wise as serpents and innocent as doves.” (Matthew 10:16). The context of this passage is referring to his followers preaching the gospel, but I believe the principle is true for how Christians and churches handle finances as well. Our Lord and Savior is very interested in how churches invest the resources they have been given. 

Luke 19 contains a profound parable that Jesus taught about a nobleman who gave money to ten of his servants before leaving on a journey. When the nobleman came back he praised the servants who had invested the funds wisely, while he cursed the servant who did not invest what he had been given. He said, “I tell you that to everyone who has, more will be given, but from the one who has not, even what he has will be taken away.” (Luke 19:11-27) Jesus Christ promised to build his church, but he wants the church to be wise and thoughtful in how they use the funds they have been given. 

The apostle Paul understood that the ultimate source of all church funds come from God. In his second letter to the Corinthian church he wrote, “And God is able to make all grace abound to you, so that having all sufficiency in all things at all times, you may abound in every good work.” As it is written,“He has distributed freely, he has given to the poor; his righteousness endures forever.” This last quotation comes from Psalm 112:4, which describes the blessings that come to those who fear the Lord. This is the main principle that should guide all church fundraising. It should be done in a way that honors God. In the early church, if one church had a need, it would be communicated to another church, which would prepare a financial gift for the needy church. The attitude of giving was to be one of joy, “Each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver.” (2 Cor. 9:7) This example of giving suggests that the primary source of local church funds should come from believers who are motivated by their love for God. This does not mean that Christians can’t give towards a silent auction or a Tri-tip fundraiser, but it does mean that they are carefully considering their motives whenever they give. 1 Corinthians 10:31 is a helpful motto, “So, whether you eat or drink, or whatever you do, do all to the glory of God.”

My prayer is that those reading this article will be motivated to do the work of research and study with the funds they have been given so they might be considered good stewards of all God has given them.