Competitions, lotteries and raffles can be a fun way to raise money and can add interest and excitement to any event. There are various rules and regulations governing lotteries and raffles which you need to be aware of.
Firstly, you must understand the difference between an ordinary competition and a lottery or raffle. A competition is won by skill or talent, whereas a lottery or raffle are won by luck or chance. This difference is important as lotteries in particular are regulated by law.
Competitions are popular with all ages and can provide a useful way to raise income, increase participation and raise awareness. The kind of competition you run is only limited by your imagination and resources. Here are some examples of popular fundraising competitions:
Whatever you decide to do, ensure that there is a clear competitive element based on skill or talent, and the judges have the necessary knowledge and experience to select the winners.
A lottery (or raffle) is defined as:
A lottery is a game of chance, and a raffle is just another name for a lottery. There are several different types of charitable lotteries and you must make sure that if you run a lottery or raffle, it fits within one of these types, otherwise it is illegal.
There are three kinds of private lotteries:
Among the rules for private lotteries, you must:
Tickets can be printed but a sweepstake is also permissible. Private lotteries must not be run for profit – all money must be split between prizes. The exception is for private society lotteries where the proceeds can be split between prizes and the club or society.
A society lottery is where tickets are sold to the general public over a period of time. All society lotteries are subject to strict regulation and must be registered:
Small Society Lotteries – up to £20,000 ticket sales: register with the licensing office at Bradford Council
Large Society Lotteries tickets sales will exceed £20,000 for a single lottery, or £250,000 in one calendar year: register with the Gambling Commission.
Other important rules about society lotteries include:
Unless you are running a licensed premises (e.g. a bar), it is probably unlawful for you to install a gaming machine – contact the Gambling Commission for advice.
Any kind of gambling may be considered unacceptable by members of your management committee or your wider community. It is essential to check with your committee and advisable to consider your wider community before planning a lottery.