A charitable organization is a nonprofit organization that is exclusively created and operate for purpose to benefit the public interest. Nonprofit organizations run sweepstakes, contests, and raffles to increase donations for their educational, religious, scientific, medical, and environmental purposes.
Charitable organizations must be registered and meet the requirement of Internal Revenue Code 501(c)(3) in order to be exempted from federal income tax. This makes them eligible to receive tax deductible charitable donations and run raffle promotions.
(see also: charity, non-profit organization