It might be a problem to have a raffle in your state, even if it's for a good cause, especially since you would be hosting it as in individual (rather than the raffle being held by a charitable group). I think this would especially be a problem if cash is involved in the prize. So... I think I would steer clear of that option, although it was very kind of you to think of it. Perhaps there's a group that has the "charitable institution" designation that could take this on?
As far as the son's girl friend with the cat, I think it would make a delightful gift for her, and I don't think you should worry about the cat. If she has cats, she should have some way of keeping them out of things that really would be ruined by them. It would be a shame if simply having a kitty kept her from ever receiving nice gifts. Maybe just give it and point out that you hope she will keep it safe from her kitty.
Regardless of who gets the basket, it is adorable and you've taken basket making to a whole new level with the cover insert.