One of these options is to register and run a fundraising (or society) lottery in line with the Lotteries Act.
The National Lotteries Commission (NLC) was established in terms of the Lotteries Act 57 of 1997, as amended to regulate lotteries and sports pools. From these regulatory activities, revenue is collected to distribute funds to good causes.
Every year, the NLC receives thousands of applications for funding from organisations working in the not-for-profit (NPO) sector to help communities. These grants are made possible through a sharing of a percentage of national lottery ticket-sales revenue that is directed to the National Lottery Distribution Trust Fund (NLDTF).
Many organisations apply for funding from the NLC for projects or to run their programmes. However, this is not the only way that they can survive. There are several options available to NPOs to raise money, with the guidance of the NLC.
One of these options is to register and run a fundraising (or society) lottery in line with the Lotteries Act.
This type of lottery is a fundraising scheme where participants may donate to a good cause or buy tickets for a chance to win a prize.
Many organisations have used this method of fundraising to reach their goals. For example, an organisation caring for persons living with disabilities that raises funds to purchase wheelchairs.
NPOs can apply to run this type of lottery in compliance with the Lotteries Act by contacting the NLC to register a fundraising lottery. The purpose of fundraising is to obtain financial resources to support a good cause, so proceeds from this lottery may not be used for private or commercial gain.
Costs involved include a once-off payment of registering a society is R 557, while registration of a fundraising lottery is R 112.
Up to six lotteries may be conducted in any calendar year.
Running the Lottery
A lottery manager must be appointed to run the lottery. This can be someone from within the organisation. If the lottery manager is an individual from outside the organisation, he or she must be issued with a certificate by the NLC.
The NLC will register the lottery in compliance with the Lotteries Act, provide a toolkit for the process, answer all your questions and perform a compliance inspection after the draw for prizes.