Prize draws are a popular way to earn a little extra money for your business, club, or organisation. The simplicity of the prize draw, which can be easily arranged with nothing more than a roll of raffle tickets, or, if you are feeling ambitious, some lovely stapled booklets, perhaps printed with the name of your group or cause, and even customised with your logo.
If you’ve found success with a one or two day prize draw or raffle conducted within the auspices of your event (considered a “small lottery” under the law), it might seen logical to take it to the next step. Why not increase your profit by increasing the size of your prizes?
The answer to that is, of course, that this may be illegal. The law restricts small lotteries to prizes of with a value of 250 GBP or less, and forbids the awarding of a cash prize in such situations. You may already be aware of some of the other laws pertaining to small lotteries, lucky dips, tombolas, and sweepstakes. For instance, you may only sell these raffle tickets during the event, and you must choose the winner during the course of the event.
Cash Raffles may be arranged, but they require special licence and oversight. If you wish to maintain your fundraiser as a small lottery, you must avoid cash prizes. Otherwise, you must register with the Gaming Council and be subject to other rules and oversight.
If you’d like to learn more about using a prize draw or raffle as a fundraiser, you can ring the Institute of Fundraising on 020 7840 1000.
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