New Forest District Council considers launching community lottery to raise money for local good causes

PLANS for a community lottery raising money for good causes are being considered by New Forest District Council.

Members of the cabinet have requested officers produce a detailed report on how the scheme could be successfully run in the district, with a final decision to be made by the full council.

A report to members explained the community grants task and finish group explored how a lottery could run alongside its grants programme to provide further funding opportunities and support to local organisations across the district.

A presentation from community lottery operator Gatherwell, which operates in over 120 other local authorities, explained the allocation of the £1 ticket income distributes 60% to good causes, 18.2% to prizes, 18.2% for running costs and 3.6% VAT, which can be claimed back by the council.

Weekly prizes range from free tickets to cash of up to £25,000, and there is no risk the council will have to fund any of the prizes, no matter how many tickets are sold.

The report adds: “Based on our adult population size and estimated participation, Gatherwell predict approximately £65,000 could be raised annually to support local organisations, with payments being made monthly to organisations.

“The set-up cost is £5,000, with ongoing annual costs of circa £800, which could be funded from the VAT being reclaimed. The lottery provider supply resources, including promotional materials.

“The [task and finish] group considered the merits of a community lottery scheme and were supportive of the principal, recognising the additional support to local organisations and groups that benefit our communities and residents, and noting the competitiveness and resource requirements of applying for grants, and to supplement our existing community grants scheme.”