This contest can be used to complement a dinner fundraiser or a group meeting — have your members donate items towards a white elephant raffle in advance, and these items can be anything they don't want any more, from lamps to ceramic figures.
Put all of your collected items on a table so people can see them. Then use small boxes or gift places to hold numbered labels (from 1 through to the number of items) or consolation prizes (these can be candy or chocolate for example).
Make the packages as enticing as possible to encourage everyone to get involved and purchase one. Buying a gift box means you're in with a chance of winning something from the prize table — the number you unwrap corresponds to the item you've won.
One alternative method is to wrap all of the prizes instead of using gift bags — it really depends what you think will encourage people to spend some money. Wrapping the prizes adds an air of mystery to proceedings, though participants might want to know what some of the high-end items before they are tempted to buy a ticket.
However you decide to do it, this is a straightforward fundraiser that doesn't require much in the way of organization.