Rotary Club Of Wednesbury donated the money to Breaking Bread foodbank, also located in Wednesbury.
Malcolm Johnson, almoner of the rotary club, said the group always tries to help those in need.
He said the club, based at Masonic Hall in Russell Street, has a proud tradition of doing so, having been in existence for 90 years.
Two mountain bikes worth £550 was donated to the raffle by Gemini Carpets of Wednesbury.
Five lots of £50 cash prizes were donated by S Webb and Son Ltd Funeral Directors, also of Wednesbury.
Mr Johnson, aged 79 from Wednesbury, said: "The money was raised by something that we have never done before which is an online raffle.
"The prizes were donated by two big supporters of us. They were Gemini Carpets and our friends from the funeral section, S Webb and Son Ltd."
The donation to the foodbank came after a disruptive Christmas period for the group.
Wednesbury's Rotarians were not able to hold their annual festive float, where they visit streets in the town.
This is usually "well received" and raises about £10,000, said Mr Johnson.
He said the online raffle was a "big success" and was done "fairly quickly". They then came to a "unanimous decision" to donate to Breaking Bread.
Mr Johnson continued: "We did it because the Rotary Club of Wednesbury have always been a club that has helped the underprivileged, and people like schools, and the rugby club, the cricket club, girl guides, the churches and that.
"We have been going for over 90 years now in Wednesbury. Long may it continue because we do feel we are there to help people who are not so fortunate as we are."