A new independent report published by the Cebr has outlined the benefits for charities through reducing regulations on society lotteries.

 

‘The Economic Impact of People’s Postcode Lottery’ reveals:

• Players of People’s Postcode Lottery directly contributed £10.2 million to good causes in 2013 – this is a six fold increase since 2008 and represents approximately 8.8% of the society lotteries sector.

• Funding to good causes made possible by players of People’s Postcode Lottery increase to £27.5 million once the charity multiplier is taken into account. For each £1 in Postcode Trust funding, charities indicate that they are able to raise an additional £1.70 from other sources, providing a multiplier of 2.7.

• A key driver behind this multiplier appears to be the largely unrestricted nature of the funding provided by players of PPL.  The ability of charities to direct this funding to where it is most needed can prove invaluable to removing resource bottlenecks and getting projects off the ground.

• There is significant potential for PPL in Britain to expand the contributions made to good causes through players – contributions in other European countries such as Sweden and the Netherlands (where other Postcode Lotteries operate)are significantly higher, despite Britain having a much larger population, suggesting that regulatory reform could have a substantial impact on increasing the funds available for good causes.

• The annual direct contribution made to good causes by players of the People’s Postcode Lottery could increase to as much as £130.2 millionif regulations governing revenue and prize sizes were relaxed. This would be expected to lead to total charitable income of £351.5 million once charity multiplier effects are taken into consideration.

• Based on available evidence, The National Lottery should not be negatively affected by the deregulation of the society lottery sector that could bring about these increased contributions. A review of the academic literature and evidence from other countries shows that the National Lottery stands to benefit from the complementary nature of a larger society lottery sector.

The report called for an increase in society lottery turnover and draw limits, which will substantially boost the ability of organisations such as People’s Postcode Lottery, who commissioned the study, to better support good causes.

 

People’s Postcode Lottery, is a society lottery raising funds for, and building awareness of, charities and good causes in the UK and globally. It is part of a family of charity lotteries operating in the Netherlands and Sweden, which combine to make the world’s second largest private funder of good causes*.

 

The report highlights that every £1 in support from players of People’s Postcode Lottery is leveraged by charities to generate, on average, an additional £1.70 in income. With this multiplier of 2.7, coupled with a simplification in society lottery regulations, players of People’s Postcode Lottery have the potential to raise as much as £351.5m in a calendar year for good causes**.

 

Mark Astarita fundraising director at the British Red Cross has backed the call for the government to simplify the regulations restricting the ability of society lotteries to achieve more for charities.

 

Mr Astarita said: “I welcome this report, and indeed any evidence, that demonstrates the need for responsible reform of current society lottery regulations. The hoops that charities have to jump through are disproportionate.”

 

He went on to add: “Excessively tight restrictions can put charities off running lotteries and this limits the funds they have available to spend on their work. Players of People’s Postcode Lottery help charities like British Red Cross do more to support people in crisis, and simple reforms could enable the available pot of money to grow.”

 

The report’s launch coincides with an ongoing inquiry by the Culture, Media and Sport Select Committee into the benefits de-regulation in the society lottery sector might offer to good causes.

Peter Lewis, Chief Executive, Institute of Fundraising welcomed the research findings and said:

 

“This report highlights the importance society lotteries have in the fundraising community. Simplifying existing regulations will allow even more to be raised by charities, delivering increased support to good causes at a time when they need this most.”

 

Grant Baskerville, Head of Public Affairs, People’s Postcode Lottery, said: “The report represents a turning point in the debate on how best to regulate society lotteries. It provides unequivocal evidence that there is so much more our players could achieve for good causes with some very simple changes to existing regulations. ”

 

It is anticipated the Government will launch a call for evidence into society lotteries before the end of the year, with the possibility of changes being made to the sector in time for the upcoming UK General Election.

 

To find out more about People’s Postcode Lottery, click here.

 

* City A.M. 20 December 2013

** The realisation of this growth in fundraising is dependent on a number of factors, most importantly People’s Postcode Lottery’s ability to sell more tickets.

Interview opportunities available (please contact Rachel Ruxton, Head of Communications, People’s Postcode Lottery, 07535 168 837 to coordinate)

Grant Baskerville, Head of Public Affairs, People’s Postcode Lottery

Peter Lewis, Chief Executive, Institute of Fundraising