IoF responds to DCMS Call for Evidence on society lotteries

IoF responds to DCMS Call for Evidence on society lotteries 223Kb PDF

4 March 2015

The Institute of Fundraising has responded to a Department for Culture, Media and Sport (DCMS) Call for Evidence and made recommendations for change that could help society lotteries raise more funds for good causes.

Society lotteries provide valuable income to good causes - £175 million in 2013/14 – income which goes directly to support charities in delivering vital services to communities. Fundraised income through society lotteries has seen growth in recent years, but we believe that there is potential for them to be even more successful and make a greater contribution to the income of the sector.

By relaxing and simplifying some of the present restrictions on revenues, individual prize draws and the minimum contribution (the ‘20% rule’), society lotteries can deliver significantly more for good causes.

The Institute of Fundraising’s recommendations for change which can achieve this are:

  • An increase in the permissible amount of ticket sales for a single draw from £4 million to £10 million, enabling the bigger, more popular charities to raise more money for little extra effort

  • An increase in the annual income cap on any society lottery from £10 million to £100 million to enable the bigger charities to reach economies of scale and maximise their fundraising

  • An increase in prize values from £25,000 to £100,000 and from 10% of the proceeds to 50% to give operators flexibility on prize values in order to maximise the overall amount raised through increased ticket sales

  • Flexibility in the application of the 80:20 rule to allow the minimum contribution for good causes to be aggregated across all draws. The contribution should be allowed to be met over a longer period of time, ideally up three years. This will remove barriers that charities face in starting society lottery fundraising, allow further investment in lottery programmes and reduce risks. 

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