This is their definition of "Raffle":
26. "Raffle" means a lottery in which each participant buys a ticket for a chance at a prize with the winner determined by a random method and the winner is not required to be present to win. "Raffle" does not include a slot machine.
Basically if someone gives you money for a chance to receive something in return, it is a raffle, even if you call the money receipt a "donation". According to their rules you must have a gaming license to have a raffle AND you must be a non-profit organization to obtain a license. Some of the wording in their "rulebook" is confusing and I would probably need an attorney to figure it all out.
So, this is what I have decided so far: I am going to design a commemorative shawl pattern which I will sell to anyone who wishes to purchase it. I will then be donating the proceeds, less expenses, to an organization offering assistance to those affected by the NE Iowa tornadoes - tentatively this will be the Community Foundation of Northeast Iowa.
I will be posting updates here regarding the pattern progress, when it will be available, etc. So bookmark this page!