The value of fundraising lotteries
As we all know, the UK is experiencing the worst cost of living crisis in a generation. We’ve all had to tighten the purse strings and cut back on non-essentials.
However, it seems the public is not willing to forego one non-essential item: the weekly lottery ticket.
According to Mintel’s latest Lotteries Market Report, consumer spending on raffles and lotteries reached a record-breaking £4.2bn in 2022/23. And it’s estimated to rise to £9.4bn by 2029.
The numbers say it all. Lotteries are weathering the economic downturn, making them a valuable fundraising opportunity for charities.
Before we delve into the reasons why, let’s look at a quick definition.
What is a lottery?
According to The Fundraising Regulator, ‘lottery’ is a broad term that encompasses events such as raffles, tombolas, and sweepstakes. “As a rule, a lottery is a game where you pay to enter, there is at least one prize, and winning is dependent only on chance.”
Why are lotteries so popular?
Lotteries stand out from other fundraising methods as they incentivise giving.
Where else can you "invest" £1 or £2 for the opportunity to win thousands? The risk-to-reward ratio is appealing, even if the odds of winning are small.
Take Age UK’s weekly lottery, for example.
It costs £1 a week to enter. Each week, the charity awards 1,000 cash prizes, ranging from £10 - £2,000.
Although the odds of winning £2,000 are 1 in 185,000, thousands of people play.
As an added incentive, Age UK automatically enters players into their Quarterly Superdraws, where 5,000 players can win anything from £5 to £25,000.
Low risk, high reward.
The benefits for charities
There are 500+ society lotteries in the UK. But the number is on the rise.
A growing number of charities are tapping into their universal appeal and reaping the rewards.
But what’s in it for charities? Here are three key benefits.
1. Predictable income source
Because you know how many players you have, how often they play and how much they pay each time, lotteries are a predictable and sustainable way of generating income.
And that income can be substantial. Since 2005, Age UK’s weekly lottery has raised over £72m.
2. Effective engagement tool
Research shows that four out of five people are more likely to contribute to a charity lottery than make a donation.
The great thing about prize-led fundraising is it combines the intrinsic reward of supporting a cause, and the extrinsic reward of winning a prize.
This can be a great way to convert potential supporters who might not get there on cause-appeal alone.
3. Endless marketing value
Everyone loves a good ‘rags to riches’ story.
Every time a winner is drawn, you have an opportunity to share their stories, while promoting your cause and attracting new players.
Winners’ stories make great fodder for website, social media, and blog content.
St Cuthbert’s Hospice makes good use of winner’s stories on their website.
Easy to manage
Don’t have the resources to manage a lottery in-house? You can outsource it to a third party.
There are a number of reputable lottery managers who can manage the lottery on your behalf. A list is available on the Lotteries Council website.
All bets are on
If you’re looking for a sustainable income stream with universal appeal, a lottery is a good bet.
Just be sure to check out the rules and regs before taking the plunge.
Need an extra fundraiser to get your lottery up and running? We can help. Give us a call on 0203 750 3111 to get the ball rolling.