IoF calls for higher limits in society lottery consultation response
Melanie May | 7 September 2018 | News
The Institute of Fundraising has called for a larger limits for society lotteries and greater flexibility in the 20% rule in its response to the government’s consultation, which closes today.
The consultation opened on 29 June for 10 weeks, and asked for views on increasing the maximum draw prize from £400,000 to £500,000, and on increasing the number of tickets society lotteries can sell to a value of £100 million per year and the amount they can raise per draw to £5 million.
Having sought the views of its members, the IoF has today submitted its response, which is in favour of the government’s proposals to introduce flexibility into the system and raise the limits for society lotteries, but recommends higher limits in every area under consultation.
For large lotteries, it recommends raising the individual per draw sales limit to £10 million rather than £5 million, and the individual per draw maximum prize limit to £1m, rather than the proposed £500,000. It argues that as the limit has remained the same since 2005 it is now worth less in real terms, and that as both prize and cause influence player motivation, increasing prize size could raise lottery demand.
For small lotteries, based on its members’ responses, it states that the vast majority said that the per draw limit should be raised to £40,000, with additional multiple comments from respondents suggesting £50,000 would be preferable, and that the annual sales limit should be raised to £500,000.
The IoF also notes in its response the problems caused by the minimum contribution rule (the 20% rule). It states that one-off sizeable start-up costs make it difficult for society lotteries to reach the statutory minimum to good causes in the first year of operation and therefore acts as a disincentive for new entrants. It would like to see more flexibility in this area.
It also calls for more regular reviews on limits, and for the government to work with The Gambling Commission to provide greater support to charity lotteries, such as through the simplification and streamlining of current processes and rules, or through additional guidance and support for charities.
The Institute of Fundraising’s full response can be read on its site, while Lizzie Ellis, its Policy and Information Officer, has also written a blog summarising the key points of its response, also on the IoF site.
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About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.