The National Council for Voluntary Organisations is working towards launching a new society lottery that member charities will be able to use to raise funds, Third Sector has learned.
The lottery, which will be called Give and Win and will operate solely online, is expected to be launched towards the end of September. It is being developed in conjunction with the Sport and Recreation Alliance – the umbrella organisation for sport and recreation governing and representative bodies – and the external lottery manager Capen.
The NCVO and the SRA have both been granted licences by the Gambling Commission to run individual society lotteries, which will operate together under the Give and Win brand.
For each £1 ticket purchased, 40p will go to the cause, 40p to the prize fund and 20p to the management and promotion of the scheme. Players will be able to buy a ticket that will benefit a member charity; otherwise, the good-cause portion will go into a shared prize fund administered either by the NCVO or the SRA.
In order to participate, charities must be NCVO members and sign up to the scheme. Individual charities will then be able to promote the scheme to their own supporters, who will be able to purchase tickets that will benefit that organisation. The maximum prize will be £25,000 in the weekly draw.
Richard Williams, director of enterprise at the NCVO, told Third Sector that he expected the "relatively low-key" venture to benefit mostly smaller charities.
He said he expected initial returns for charities to be relatively small, but they had the potential to enable some smaller organisations to embark on new projects that they would not otherwise have been able to afford.
The NCVO lost thousands through its involvement in BingoLotto, which closed in 2009 after only four weeks when the company that ran it went into administration.
Williams said there was much less risk with Give and Win and that the NCVO had not invested any cash – only staff time. The demands on staff would be low once the scheme was up and running, he said. "We always had a wish to do this again, only with a different business model," Williams said.
Simon Rydings, chief executive and founder of Capen, said that he anticipated that the bulk of initial players would be established charity supporters who would buy tickets in support of a particular organisation.
"When you buy a National Lottery ticket, you do not get to choose who gets the good-cause money," he said. "The interesting thing here is that we anticipate this will be driven by people who already have an organisation in mind."
Williams said that Give and Win would have a low-key launch towards the end of the month.