CharityVillage® Research: Home lotteries --- a hot new trend

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Home lotteries --- a hot new trend
November 6, 1995; Canadian FundRaiser

These challenging economic times demand new and innovative revenue sources. One source that is growing in popularity is the Home Lottery. A relatively quick and efficient way to raise large amounts of money, when done in partnership, a lottery can increase your success quotient, reduce the workload, heighten awareness, share the risk and significantly strengthen the case. British Columbia's Surrey Memorial and New Westminster Columbian Hospital Foundations mounted their second joint home lottery this past spring to raise dollars needed for an MRI at Royal Columbian and to support a new children's health centre at Surrey Memorial. Selling out 90,000 $100-tickets in just 18 days, the joint venture raised $3.7 million for the hospitals.
Certainly prizes are the big draw: in this case, three homes retailing at $650,000 each; an early bird prize of either a Mercedes-Benz, Motorhome or Boat; and 4,506 other exciting offerings - 40 new vehicles, 31 boats, 64 vacation packages, 2021 home electronics and 2350 sport & leisure prizes. With 1 in 20 odds to win something, little wonder the lottery is so `hot'. "You can pretty much anticipate a noticeable increase in these lotteries," forecast Michael Petrie, Executive Director of the South Fraser Healthcare Foundation (the fund-raising arm for Surrey Memorial). "Lotteries won't cut into traditional gifts and endowments. People who buy a ticket do it as a lark, not as a substitute for a charitable donation."
Also new on the scene is The Calgary Regional Health Authority. It has just kicked off its first Super Home Lottery, with the proceeds to help create a centre for people with Alzheimers and other forms of dementia. "In the first three weeks we sold half of the 60,000 tickets offered. People are definitely responding," adds Melody Engelman, Lottery Spokesperson. "We hope to raise $2.5 million. Selling half the tickets in the first three weeks reinforced how well the lottery has been organized and how strong the level of support is in the community." For $100, ticket buyers have a 1 in 20 chance to win one of three furnished estate homes or one of 3,011 other impressive prizes. To help with the minutiae of planning and logistics for this Home Lottery, Alberta's largest, consultant Orme Asher was called in.
CIBC gives project a financial edge
With the October launch of Oakville Ontario's Dream Home Lottery, another partnership has hit the ground running. Created to assist The Canadian Red Cross Society and the United Way, this venture brings together two important community agencies to initiate one fundraising venture...with a twist. "This project reaches beyond the boundaries of Oakville and helps the entire region," explains Mary Ellen Frederick, Red Cross Project Manager for the Dream Home Lottery. "We will be tracking the postal code of each ticket purchaser, so we can direct lottery benefits to their home communities." Selling their 80,000 tickets for a mere $25 (or five for $100), they hope to raise $500,000. Odds on this lottery are 1 in 120 to win the grand prize, a $417,000 manor home that includes a furnishing and landscaping package, and 347 other exciting prizes with a value of $180,000 that are up for grabs. Yet what is particularly impressive about The Oakville Dream Home Lottery is its financial edge. In a pacesetting demonstration, the Canadian Imperial Bank of Commerce is underwriting the fundraising campaign, providing a $1.1 million guaranteed and irrevocable line of credit. Treating the venture as a pilot project with the potential for a national roll-out, the CIBC has virtually assured the success of the project.
Unexpected bonus in new-found partnerships
In addition to reducing or eliminating as much of the risk as possible, when planning a Home Lottery allow sufficient planning time - often up to twelve months. Ensure that a strong volunteer force is in place; it can take thousands of volunteer hours. And of course, garner the best possible quality prizes. Some organizations budget up to half the gross proceeds. The real bonus is in partnerships: where there has traditionally been a competitive element, more often than not it is replaced with new-found collaboration, often resulting in the emergence of new joint projects.
Some food for thought: Surrey Memorial and Royal Columbian recently received a joint bequest. The reason? One donor was so impressed with the partnership undertaken by the two hospitals she decided to acknowledge their leadership with a gift of close to $5 million.
For more information call Oakville Dream Home Lottery @ 1-800-305-2010; Calgary Super Home Lottery @ 1-800-818-1015; Surrey Memorial/Royal Columbian Hospital Foundations Home Lottery @ (604) 588-3371.