Definition of a charity lottery

In different parts of the world state- or private lotteries donate parts of their profits to good causes. This varies among countries from a relatively low contribution to one specific sector, often the sports sector, to larger shares for a much wider range of organisations. When can we speak of a charity lottery?

• The primary aim of a charity lottery is to raise funds for charitable organisations (the charity lottery is a tool). The fundraising efforts are not used as a mere excuse for organising the lottery, but are indeed the main reason.

• A substantial part of the sales is directed to charitable organisations. As a standard, we would advice that (as soon as the financial situation of the lottery permits it and depending on national legislation and market situation), that a minimum of 20% is directed to charities.

• A charity lottery provides institutional support - beneficiaries can spend the money as they see fit. A lottery supports the objectives of organisations, rather than projects or activities of organisations.

• A charity lottery should be a reliable partner to the organisations it supports, therefore funding should be long-term.

• There is no political interference in the allocation and distribution of the funds – funding decisions are made by an independent board. The most effective way to achieve long term funding, is without political interference in the allocation and distribution of the funds. After all, when politics are involved, distribution funds can change, especially after elections, in order to match government policies. In our opinion, charity lotteries can best be private organisations, and make their own decisions on allocations and the distribution of the funds, to ensure that funding is additional to government subsidies, instead of replacing them.

• Charity lotteries are non-addictive by nature – in principle charity lotteries offer only long odds games.