What are the requirements for hosting a raffle?

Some nonprofit organizations are permitted to hold certain gaming activities in order to fundraise. They are allowed to hold raffles, defined as "an arrangement for raising money by the sale of tickets, certain among which, as determined by chance after the sale, entitle the holders to prizes." The law requires that the promotion and operation of the raffle be limited only to the qualified members of the sponsoring organization and no such member shall receive compensation in any form for their time or effort devoted to the promotion and operation of such raffle. In addition, all raffle proceeds must be used for educational, charitable, religious, fraternal or civic purposes or for veterans' benefits.

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1. What are the requirements for hosting a raffle?
2. How to obtain a permit?