GATHERWELL LOCAL AUTHORITY LOTTERIES. Raising funds within the community for the community

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1 GATHERWELL LOCAL AUTHORITY LOTTERIES Raising funds within the community for the community

2 INTRODUCTION In response to the ever increasing pressures on Local Authorities to maintain community grant funding levels, our innovative, low-cost solution has been designed to help you and the Voluntary and Community Sector (VCS) community gain access to new funding streams. Pioneered in partnership with Aylesbury Vale District Council in 2015, the UK s leading online lottery solution offers higher contributions to good causes than any other major lottery in the UK. The model also provides supporters with the ability to choose the good causes they want to support and has virtually no administration requirements. Our lottery model revolutionises the way that lotteries work at a grassroots community level. 2

3 WHY DEVELOP A LOCAL AUTHORITY LOTTERY? We are passionate about empowering local communities and helping them to fundraise. We wanted to create a solution that: Helped alleviate the pressures on the council s VCS budget. Provided a lottery to help the VCS raise funds and maintain long term relationships with their supporters. Supported the VCS whilst moving the council s role from provider/funder to enabler. Enabled the VCS to access a lottery product that is designed for them and at no cost to them. Helped to shift in the minds of the community the role their council takes in VCS matters and their innovative approach to service delivery. HOW DOES THE LOTTERY WORK? Players sign up online using Direct Debit or a payment card. Payments are taken on a monthly recurring plan or a three, six or 12 month one-off payment. Tickets cost 1 per week. Players can buy multiple tickets and support multiple good causes. 60p in every 1 goes to good causes more than double the percentage that the National Lottery gives to good causes. Draws are conducted every Saturday at 8pm and results are posted live online. Winning players are notified via and will receive their prize directly into their nominated account or they can choose to donate their winnings to their chosen good cause. Good causes are paid their income automatically on a monthly basis. Staff and members can play in fact we encourage it! 3

4 CENTRAL FUND VS CHOOSING A SPECIFIC CAUSE When players sign up they can choose to buy a ticket that supports either: The Central Fund (the default ticket type) where 60% of the ticket price goes to the central fund to be awarded by the council s chosen process. or A Specific Good Cause where 50% of the ticket price goes directly to the good cause chosen by the players with the other 10% going to the central fund. Players can buy tickets for as many different causes (including the central fund) as they want CENTRAL FUND All moneys raised by the lottery which is allocated to good causes, can either be used to increase the council s existing community grant funding budget or can be used to replace/ reduce committed funding, thereby releasing general funds back to the council. SPECIFIC GOOD CAUSES Good causes can apply to join the lottery via the website. Once approved, they are provided with their own branded page within the site and provided with regularly updated bespoke marketing materials. The cause keeps 50% of all tickets sales generated through their page. In order to be approved, they must meet the criteria laid out in the lottery s terms and conditions. They will also need to be approved by the licence holder (you). Restrictions should be kept as open as possible, allowing more good causes to apply. (The more causes the better!). 4

5 WHAT ABOUT THE PRIZES? The standard prize structure is shown below but we also have the ability to tailor different prize structure models as appropriate to different communities. NUMBER SELECTION AND PRIZE STRUCTURE Winning Odds Prize 6 numbers 1 : 1,000,000 25,000 5 numbers 1 : 55,556 2,000 4 numbers 1 : 5, numbers 1 : numbers 1 : 56 3 free tickets Overall odds of winning any prize 1 : 50 - WHERE DOES THE MONEY GO? The table below shows the standard structure of how the ticket revenues are distributed but we also have the ability to tailor this for our customers as appropriate. PROCEEDS APPORTIONMENT Player chooses Specific Good Cause Player chooses Central Fund (no specific good cause) % Allocation Allocation per ticket % Allocation Allocation per ticket Prizes Specific Good Cause Council Community Lottery Good Causes Administration VAT Totals

6 WHO RUNS THE LOTTERY? The lottery is run by you through Gatherwell. We re an external lottery manager (ELM). The ELM runs all day to day operations of the lottery, but you control oversight and governance. WHAT DO YOU NEED TO DO? We take care of all operation and administrative requirements. We even provide marketing strategies and advice pre and post launch. The only remaining responsibilities for you is the: application of a Local Authority Lottery license from the Gambling Commission (We will help guide you through this process). The cost of the licence will be approximately 500 per annum. Approval of new good causes as applications are submitted on-line. Authorisation of monthly cause payments and quarterly Gambling Commission submissions. Please note: all of this administration is provided by us so you only need to authorise the work. Finally the most important thing - YOU NEED TO continuously promote the lottery to players and Good Causes! 6

7 WHAT DOES IT COST? We are an ethical company - we are built to keep costs down so the money goes where it s supposed to; to the good causes. There is a small upfront fee to cover the cost of set up ( 3,000) plus the Local Authority Lottery License fee from the Gambling Commission, plus some of your time during the setup process. The Good Causes do not have to pay anything. All running costs are covered within the administration charge (17%) on ticket sales. There is no annual fee. Marketing budget - you may wish to set aside an annual marketing budget to help maintain and grow the lottery. NEXT STEPS We are waiting to help you launch your lottery! - join your fellow local authority colleagues who are already part of raising over 500,000 each year for local good causes. If you have any queries or questions please get in touch, we re happy to help! Ben Speare Managing Director ben@gatherwell.co.uk 7

8 Gatherwell are an external lottery manager (ELM). We create, launch and manage the next generation of lottery systems. You know your community, we know lotteries, together we do great things! We pride ourselves on making fundraising easy. We do all the hard work so you can focus on what you do best. Get in touch to find out how we can help: Copyright Gatherwell Ltd 2017