What are the Sources of Lottery Charity Funding
By Space Coast Daily // August 8, 2019
Lottery charity funding is vital to helping the organization meet its objective of serving a good cause while financing the day to day operations.
You have probably seen a charity lottery advertisement on television, magazines or newspapers showing a countdown to a mega draw. One thing to note about these charity lotteries is that new names emerge in this industry from time to time, and the prizes get juicer by the day.
But how do these organizations gather the lottery charity funding?
Gathering Lottery Charity Funding through Sale of Tickets
The primary method of collecting funds to support charitable causes is through the sale of raffle tickets. The catch is in the prizes. The more attractive the rewards, the more players the lottery will attract. And this translates into more funding.
The prizes, usually cash, electronics, automobiles, and household items are purchased and sourced from the ticket money. With proper marketing and a lot of positive PR, a charity lottery can make enough money to give prizes and have more left over to pay staff, support charitable causes, and finance other necessary activities in the organization.
There are strict rules governing the operations of a charity lottery. The state requires that a specified percentage of the proceeds from the lottery should go towards the support of a good cause.
In addition, since charity lottery is considered gambling, there is a law limiting the age of the players. In most states, it is sixteen.
With the high amount of funds that can be collected from the sale of tickets, charity lotteries are an attractive platform for fraudsters to rip off unsuspecting ticket buyers. For this reason, all legitimate companies are licensed by the gambling commission. The license number, displayed on the website, is proof of legitimacy.
Most charity lotteries also acquire funding from trading profits made in the course of carrying out work associated with its charity beneficiaries.
From Direct Donations
Prizes act as an incentive for people who do not usually support charitable organizations. They also add a little excitement to fundraising, which could sometimes turn boring and monotonous.
But some participants still prefer the traditional method of offering direct donations. This is where an individual provides direct lottery charity funding, expecting nothing in return. Some participants will add the donation money when buying the ticket.
The donation can be carried out directly through their website or during fundraising organized by the charity lottery organization.
Tax Exemptions
Charities also have fewer tax obligations. They are allowed tax exemptions on profits made from the lottery. They also enjoy charity relief on the income from fundraising events.
These benefits are only applicable if the organization operates with the proper license from the Gambling Commission.
In Conclusion
A well-organized charity lottery is financially manageable for anyone who would like to serve a good cause. Sources of lottery charity funding include the sale of tickets, donations, fundraising events, and income generated in the course of helping its beneficiaries.
The best part is that most of these funds receive charity exemption, which reduces the tax obligation. However, all these benefits are acquired on the condition that the lottery operates under the license and regulation of the Gambling Commission.
CLICK HERE FOR BREVARD COUNTY NEWS
