Organising a raffle for charity: 5 top fundraising tips

1. Regulation

Lotteries (which include Raffles, tombolas, sweepstakes, and some other activities) are widely used by the charity sector as a way of generating additional financial support outside of their traditional donation request activity. Most charity raffle programmes are regulated by the Gambling Commission and fall under the 2005 Gambling Act, operating as a small or large-society lottery. Fundraisers must ensure that their charity raffle programme complies with relevant legislation.

The Code of Fundraising Practice also requires operators of charity lotteries to respect prospective donors, ensuring that they are adequately informed and that the charity does not exert undue pressure on the individual to participate. Communications with current or future players must also be processed in accordance with GDPR and Data Protection legislation.

2. Engagement

Charity raffles are often very successful. Raffles are often used to engage with potential supporters who may not otherwise choose to donate to the charity and offer the recipient something in return for their financial contribution.

However, the 'type' of donor recruited via a Raffle communication is often quite different to the traditional cash donor or regular giver, and ongoing engagement after the initial raffle play is often lower. Subsequent donations can be more challenging to obtain.

Raffle campaigns also tend to see a higher percentage of anonymous donations with a cheque or cash just sent back to the charity without any personal details or where the supporter has opted out of future communications meaning that while the activity drives much-needed revenue, the charity is unable to have any ongoing contact with the supporter.

3. Number of tickets

Determining the optimum number of tickets to send out to a cold audience is essential when considering a campaign's potential return on investment and the likely response rate the charity is trying to deliver. Fewer tickets may increase response but have lower income levels, meaning that the breakeven point is much further into the future than is acceptable.

In contrast, a higher number of tickets may deliver more pay per responder but is more costly to produce and may deliver a lower percentage of new supporters. The key here is to consider what other charities competing in the same space are doing (if every charity offers a 5-ticket book, then chances are that it works).

More importantly, be prepared to test and learn what works for the individual charity. Data analysis can also help to identify how many tickets are best suited to offer different supporters or prospective donors and help maximise return on investment

4. Audience targeting

Whilst a cash donor and a raffle player generally share many of the same demographics and lifestyle characteristics, their motivation for donating is often different. Therefore, getting the targeting right to elicit the desired response from the prospective supporter is crucial and tailoring the type of communication (cash ask, raffle pack, weekly lottery etc.) based on known behaviours, attitudes and demographics can be the deciding factor in the success or otherwise of the campaign.

Frequency of communication, contact channel and follow-ups are also key considerations for charities, including direct mail targeting via magazine or other publication inserts. Evidence shows that the details matter – envelope types, paper thickness, and pack weights can significantly impact performance and cost. Managing this effectively can affect the return on investment considerably.

5. Transparency

Transparency and accountability have become increasingly important for charities, and prospective donors want to know where their money is going. The most responsive charity campaigns frequently include sufficient information about the cause, the importance of the donation to the organisation and, notably, how the funds will support those in need.

From a compliance perspective, how the organisation will use their data, so it's essential to cover all of these within the mailing pack to give the campaign the best chance of performing. Consider including information such as The purpose of the Raffle - to mark an event, a specific or known cause or a need for particular resources, for example. If the charity has a particular fundraising target, ensure this is communicated, and if possible, particularly for smaller organisations, let the recipient know where the prizes will be coming from.

Now for the numbers!

Success rates

We have run many successful charities raffle campaigns for number of clients. 2020 was a bumper year for charity raffles given Covid restrictions and the number of potential responders who were at home more than usual, coupled with the enticement to win something which uplifted consumers' spirits at a time when it was needed more than ever.

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If you’d like help with your direct mail raffle, get in touch today