Second Amendment Sports, the gun shop in the Illinois town of McHenry, is looking to raffle off an AR-15 assault riffle to raise money for the OneOrlando fund.
The fund was set up after the June 12 shooting, where 49 people died when a heavily armed man opened fire inside a popular LGBTI nightspot.
The shop will also donate an additional $2000, on top of raffle takings.
Shop co-owner Bert Irslinger Jr told BuzzFeed the shooting was an issue of terrorism, not one of guns.
“We denounce terrorism on our soil in any way, shape or form and we’re standing with American citizens and loved ones of the victims of this heinous act," he said.
“The issue in Orlando is not an issue of guns. It’s an issue of terrorism and it’s an issue of hate and we stand against those things.”
Executive director of the Illinois Council Against Handgun Violence in Chicago, Colleen Daley, called the raffle offensive.
"I'm glad people are trying to raise money," she told the Chicago Tribune.
"I just don't think it's the most appropriate way to do that. These guns are weapons of war, meant to kill large numbers of people in a short time, which is what happened in Orlando. I find it very distasteful and offensive."
Many on social media have criticised the shop.

Comments on the Illinois Council Against Handgun Violence Facebook post about the raffle (Facebook) Source: Facebook
The raffle winner must fill out a US government issued form and hold a firearm owner's identification card, Mr Irslinger said.
The shop is selling raffle tickets for $5 apiece, throughout the month of July, with the draw set to be held on July 31.