Text raffles are run as free draws. A free draw must be free to enter, or have a free way to enter, so anyone can enter a text raffle without donating. Running raffles this way means more money reaches your charity.
What is a free draw?
A free draw must either be completely free to enter, or have a free way to enter. The free way must be a letter by ordinary post, or another method that costs no more and is no less convenient than the paid way. The way prizes are given out must not treat free and paid entries differently.
How free entry works
Every entry into a text raffle is free. Supporters can also choose to donate to your charity:
- To enter and donate, supporters reply with the number of entries they want, and donate the amount shown.
- To enter for free, supporters reply with the number of entries they want followed by NODONATION. For example, TENNODONATION gives 10 free entries.
Why free entry means more money for your charity
Because anyone can enter for free:
- your charity doesn't need a lottery licence, and neither do we
- mobile networks treat the money as donations, not payments, so our fee is 5% + VAT, the same as text giving
- donations can have Gift Aid, because the supporter gets nothing extra in return for donating
What if entry wasn't free?
Without a free way to enter, the raffle would be a remote lottery. Your charity would have to register with its local authority or the Gambling Commission, depending on the size of the draw, and any partner helping to run it, such as Donr, would need a Gambling Commission licence. Mobile networks would also treat entries as payments, which cost more to process. Together, this would make each entry much more expensive.
If you want to run a licensed lottery, use GiveCircle (givecircle.com), our lottery platform.
What if someone enters for free many times?
To protect your charity, set a maximum number of entries per mobile number in your terms and conditions. See term 5 in our sample terms and conditions.