Charity lotteries and fundraising games have long helped raise money for good causes in the UK, from paper raffles at local fairs to larger online prize draws.
This blog post explains the main types of raffles and lotteries, how they are set up, and the rules charities must follow. It also covers registration, tickets and prizes, and how proceeds should be handled under UK law.
You will find practical ways to promote draws within the regulations and common pitfalls to avoid. Throughout, the focus stays on clear, compliant fundraising that supporters can trust.
What Are Charity Lotteries And Fundraising Games?
Charity lotteries and fundraising games are competitions where people buy tickets for the chance to win prizes, with proceeds going to a charitable cause. They are intended to raise funds for charities, community groups, or specific projects, not to generate commercial profit.
Unlike commercial lotteries, most of the money from ticket sales is directed to the cause after necessary costs are covered. Formats include raffles, tombolas, and prize draws. Winners are chosen at random, so outcomes cannot be predicted or assured. These activities are a form of gambling, so participation should be considered carefully and kept within personal means.
How Do UK Charity Lotteries Differ From Commercial Lotteries?
Charity lotteries exist to support a cause, while commercial lotteries are run for profit or broader revenue generation. In a charity lottery, a substantial share of ticket revenue must go to the named charitable purpose, which is why prize values are often more modest than in large-scale commercial draws.
Both types are regulated and must treat players fairly, but charity lotteries operate under specific rules on how funds are used, how tickets are sold, and what information must be disclosed. The draw is random in each case, so no outcome is guaranteed.
Types Of Charity Raffles And Fundraising Games
Charity raffles and fundraising games in the UK take several forms. Each has its own features and way of running, but all involve people purchasing entries for a chance to win prizes.
Traditional Paper Raffles
These are common at community events. Supporters buy numbered paper tickets, usually from a ticket book. Once sales close, the organiser draws numbers at random and announces the winners. Their appeal lies in the simple format and low setup cost.
Online Prize Draws
Online draws use websites or digital platforms to manage entries, payments, and the random selection of winners. They can reach supporters beyond a local area and allow for clear records of sales and prizes. The essentials remain the same as paper raffles, including a published draw date and transparent rules.
Ticketed Events And Tombolas
With ticketed events, entry to the draw may be included with the event ticket, provided the terms are clear. Tombolas typically involve drawing tickets from a drum, matching numbers to pre-labelled prizes on display. They work well at fairs where people can see the prizes as they play.
However a draw is run, results are determined at random. That is why clear information and careful management matter more than flashy rewards.
Before settling on a format, it helps to understand the rules that sit behind each option.
What Legal Rules Apply To Charity Lotteries In The UK?
Charity lotteries are regulated by the Gambling Act 2005 and overseen by the Gambling Commission and local authorities. Most draws fall under society lotteries, which are split into small society lotteries and large society lotteries, depending on the scale of ticket sales.
Key legal points include:
- Registration: small society lotteries register with a local authority, while larger operations require a licence from the Gambling Commission.
- Spending and proceeds: there are legal limits on expenses and prizes, and a required minimum proportion of proceeds must go to the charitable purpose.
- Transparency: players must be told the ticket price, draw date, who benefits, and how winners are chosen.
- Age limits: tickets can only be sold to people aged 16 or over, and marketing should reflect that.
Keeping to these rules protects participants and helps maintain confidence in the cause. With the framework in mind, the next question is how to get a lottery set up properly.
How Do You Register A Charity Lottery And Report Results?
To run a charity lottery, the organisation registers it with the appropriate authority based on its scale. For small society lotteries, that is the local council. Larger lotteries apply to the Gambling Commission for a licence.
Applications typically outline the charity’s details, the purpose of the lottery, how tickets will be sold, how the draw will be conducted, and how proceeds will be used. Fees apply, and approval must be granted before sales begin.
Once registered or licensed, organisers must keep accurate records of ticket sales, expenses, prizes, and distributions to the cause. After each draw, a return is submitted to the registering authority, confirming the funds raised, the amount given to the charitable purpose, and the costs and prizes paid out. Clear records not only satisfy regulation but also make it easier to share outcomes with supporters.
With approval in place, attention turns to the practical elements that shape a smooth, compliant draw.
How To Set Up Tickets, Prizes And Draw Mechanics
Tickets should be uniquely identifiable and priced in line with the relevant rules, and must only be sold to eligible participants. Whether sold in person or online, the ticket or confirmation should state the promoter, the charity benefiting, the draw date, and how winners will be selected.
Prizes are best confirmed before ticket sales begin. They can be donated items, vouchers, experiences, or cash. Whatever the mix, be clear about what is on offer and how many prizes there are. If any terms apply to a prize, set them out up front to avoid confusion later.
The draw itself must be fair and random. That could mean drawing numbered stubs from a container, using a certified random number generator, or appointing an independent person to oversee proceedings. Publishing the draw date in advance and sticking to it builds trust. After the event, notify winners promptly and make the results easy to find, for example on the charity’s website or at the venue where tickets were sold.
Good admin underpins all of this. Keep a log of ticket batches, sales, unsold tickets, prize allocations, and winner confirmations. It protects participants and makes reporting straightforward.
When the draw has run its course, the focus shifts to how the funds are counted and directed to the cause.
How Should Proceeds Be Calculated And Distributed?
Proceeds start with total ticket income. From this, organisers deduct reasonable costs, such as printing, ticketing platform fees, marketing, and the value of prizes if they were purchased rather than donated. What remains is the amount available to the cause, subject to the legal requirement that a set minimum share is passed to the charity.
Clear, itemised records help everyone see how the totals are reached. For example, a simple summary that shows gross ticket sales, expenses by category, and the final amount given to the cause can reassure supporters and simplify regulatory returns. Where prizes are donated, note their estimated value separately for transparency.
The guiding principle is that the charitable purpose comes first. Spending should be proportionate, and the share for the cause should be prominent in all communications.
Of course, even the best planned raffle needs people to hear about it.
How Can Charities Promote Raffles Organically?
Organic promotion uses a charity’s own channels to reach supporters without paid advertising. Newsletters, websites, and social media updates can highlight why the raffle matters, what the prizes are, when the draw takes place, and how to buy tickets. Short stories or updates from the project being funded often make the purpose feel real to potential participants.
Word of mouth still counts. Trustees, volunteers, and community partners can share details in their networks, at events, or through local groups and mailing lists.
Keep promotions factual and clear. Avoid claims about outcomes and include the essentials: ticket price, promoter details, draw date, eligibility, and how proceeds support the cause. Communications should follow UK advertising and gambling rules and avoid targeting under-16s.
Even with strong engagement, there are a few areas where raffles often come unstuck.
Common Pitfalls When Running Charity Lotteries
The most frequent issues arise from not following the regulations closely enough. Problems include running a draw without proper registration, unclear information on tickets or websites, and holding a draw before all the required details are in place.
Record-keeping errors can also cause trouble, from missing sales data to incomplete prize logs. Handling personal data without proper safeguards is another risk, so align processes with data protection requirements and only retain information for as long as needed.
Promotions should never exaggerate prizes or suggest outcomes. Over-investing in administration or awards can unintentionally reduce the share for the cause, so set budgets early and review them during the campaign. Finally, ensure the draw is demonstrably fair and communicate results and proceeds clearly afterwards. Openness tends to prevent complaints and builds long-term support.
If taking part stops feeling manageable or begins to affect your well-being or finances, help is available. Independent organisations such as GamCare and GambleAware provide free, confidential support. A careful, transparent approach from organisers, combined with informed choices from players, helps charity lotteries do what they are meant to do: raise money for good work in a way people can trust.
**The information provided in this blog is intended for educational purposes and should not be construed as betting advice or a guarantee of success. Always gamble responsibly.