At my place of work, we hold raffles twice a year where you buy tickets with the hope of winning from a range of prizes. Is this allowed? The money raised from the tickets is used to purchase prizes for the next raffle.
Also, what if this raffle was modified so that the prizes were all provided free of charge to the company and all the money generated from the raffle is donated to charity?
My opinion is that both scenarios are not permissible. In both scenarios you are paying an amount with the hope of winning something. This is gambling in another word.
However, there is nothing wrong to contribute towards the charity the fund is being raised for. So if you wish to donate some money instead of taking part in the actual raffle then you can.