How to organise a charity raffle or auction
Holding an auction or raffle at your event is a great way to generate big funds with minimal costs. In line with the Fundraising Regulator’s Code, we want to ensure that your fundraising is successful and compliant. Please take a moment to read the following information as well as guidelines from the Gambling Commission and make sure your raffle is legal, open, honest and respectful.
Running your raffle, lottery or auction
Raffle
The simplest way to organise a raffle is to have one as an additional fundraising activity at an existing event. This is known as an incidental lottery and does not require a license or registration with your council to run. It could be held during your afternoon tea, school fete, dress down day or charity ball.
To run an incidental lottery, make sure your raffle meets these requirements:
These raffles can only be held as part of an event. If your event lasts more than one day, such as over a weekend, you may sell tickets on both days.
The draw itself/the subsequent allocation of prizes can be held during the event or after it has finished. Participants must be advised when the draw takes place when they purchase tickets.
Children under 16 cannot sell or buy tickets.
Deductions for prizes must not exceed £500, although it is best practice to have these donated to help you raise as much money as possible.
All tickets must be sold for the same price (e.g. you cannot discount 12 tickets for the price of 10).
Gift Aid cannot be claimed on money raised through a raffle, lottery, sweepstake or competition.
Top tip: You can make your own tickets or use cloakroom style tickets that you can get in most stationery shops.
Small Society lotteries
Small Society lotteries are lotteries promoted for the benefit of a non-commercial society, such as for charity or to support a local sports team or a cultural society activity.
For these, tickets can be sold in advance, and the draw can be advertised to the public. To run a Small Society lottery, a license from the Gambling Commission is not required. However, you must register your lottery with your local authority licensing department, which will cost about £40 – this license will last for 12 months.
Your Small Society lottery must meet the following requirements:
A Small Society lottery can raise up to £20,000 in a single draw and up to £250,000 over a year.
You need to register someone as the ‘promoter’. They are responsible for the lottery, and their name must be printed on all tickets.
You can register your name or group as the promoter raising money for Great Ormond Street Hospital Charity, but not under the charity name as we hold our own license.
At least 20% of the lottery proceeds must be applied to the purposes of the society (the ‘good cause’).
No single prize may be worth more than £25,000, even if it is donated.
Every ticket in the lottery must cost the same and you must take payment for the ticket fee before entry into the draw is allowed.
You cannot sell tickets in a street or door-to-door (including passages through shopping malls).
You must send details of your lottery to the local authority it is registered with, no later than three months after the lottery is drawn. The local authority will have a specific form to use for this.
Auctions
Unlike raffles and lotteries, auctions have the benefit of not falling under gambling law. Here are a few tips for running your auction, and some legislation you should be aware of before you start:
If the auction is being held as part of another event, send a list of auction prizes (together with terms and conditions) out with the final information to your guests. That way they’ll come knowing what they want to bid on.
Make sure you value any items correctly. You will also need to think about a potential reserve price and provide these to the auctioneer. A general practice is that there is a 10% discretion on any reserve price.
Establishing terms and conditions is important to help avoid problems later. For example, what would you do if the auction prize was no longer available? What will you do if someone decides they no longer want to purchase the auction item? Is there an expiry date for any prizes?
Silent auctions are great ways to give your event a boost and include people who can’t make it on the night. You will need to be aware of the Distance Selling Regulations, available on the Chartered Institute of Fundraising’s website with more guidance on how to run an auction.
If you have any further questions about holding a lottery, raffle or auction, we’d advise you to consult the Gambling Commission’s website.
Top tip: Display high-value items in a prominent place during the event and get a volunteer to walk them around during the bidding.
Alternatives to raffles
Not keen on a raffle or lottery? You could also consider organising a ‘Prize Competition’ or ‘Free Prize Draw’. Neither a Prize Competition nor a Free Prize Draw require a license, but you will need to secure permission from us before going ahead with either activity.
Free Prize Draws
In order to run a compliant Free Prize Draw and raise money for GOSH Charity, you must make sure that:
People can choose to take part without paying.
The” free to enter” route is no more expensive/no less convenient than the “pay to enter” route.
The “free to enter” route is promoted/advertised to the same degree as the “pay to enter” route.
The system you use to determine prize winners is the same, regardless of whether or not people have paid to enter.
Prize Competitions
In contrast to a Free Prize Draw, you don’t need to have a ‘free to enter’ option for Prize Competitions and can therefore charge for every entry.
However, each participant will need to demonstrate certain knowledge or skills that limit the number of people who can win, for example, answering a question or completing of a puzzle correctly to enter. Multiple choice questions or a system that gives people a second chance at a question if they first get it wrong wouldn’t meet the threshold.
Promoting your activity
Regardless of whether you’re running a Small Society lottery, Free Prize Draw or Prize Competition you need to make sure that the rules are clear to all participants at the point they buy a ticket.
You will also need to make sure that any “significant conditions” are clearly outlined in any advertising that you use to promote. For example, start date, close date, age restrictions, geographical restrictions, prizes, etc.
Sourcing prizes
Top tips
Here are our tops tips for sourcing tempting prizes to encourage your guests to dig deep and give generously.
Ask early - Ensure you leave enough time before your event to get great prizes.
Find the freebies - To help you source prizes from organisations, we can send you a letter of recognition to confirm that you’re fundraising in aid of GOSH Charity. We recommend contacting local businesses near you as well as larger national organisations. Have a brochure or space for some brand promotion? This is something you can offer in return for a donated prize.
Get networking - Who do you know with useful connections or even links to celebrities, sports figures or artists? Signed memorabilia is always popular!
Mix it up - Think about who your guests are and what kind of prizes would appeal to them. Consider a variety of smaller prizes for games and larger ones for raffles or auctions, and experiences or services as well as physical items.
Add it up - Think about the value of your prizes and how much you hope to raise. This can also help when you’re deciding how much to charge for tickets.
Don't forget
Keep it safe and legal - Please check our Community Fundraising Guidelines for everything you need to know to keep your raffle or auction safe and legal.
Data handling - As part of your fundraising, or at your event, you may come in to contact with personal data belonging to people involved in your activity. You are responsible for ensuring that any paper or electronic data you hold complies with the Data Protection Act. A good rule of thumb is to treat information you come across with the same respect you would wish for your own personal information to be given. For more detail see our Community Fundraising Guidelines.
Cash handling - Please ensure you have two adults present when counting any money raised. You should do this in a secure location and not in public. Please return the money you have raised as soon as possible and no later than six weeks after the date of your event. You can find more information about paying in the money you’ve raised in our Community Fundraising Guidelines.
Treating people fairly - Treat participants fairly and take care not to exploit any in vulnerable circumstances. Also ensure you don’t place any undue pressure on anyone to buy tickets or bid.