Charities miss out on £45m due to 'outdated' lottery limits, says report

24 Apr 2019 News

People’s Postcode Lottery trusts have had to turn down £45m worth of applications for funding from small charities, according to a report out today from nfpSynergy.

Only three in every ten applications from small charities to the trusts are awarded funding according to the report, Small change: How charity lottery limits impact on small charities.

The total value of applications has climbed from £5.9m to £58.3m since 2012.

The report says legal restrictions on charity lottery sales are behind the high number of rejected applications.

Clara Govier, managing director at People’s Postcode Lottery, said in the report: “We are increasingly aware that more and more applications for local grant funding are having to be turned down.

“Not because the applications are not good enough – but because the Postcode Trusts which allocate the funding are prevented from raising more money.”

Calls to increase charity lottery sales cap to £100m

Carolyn Harris MP said: “The existing £10m annual sales cap has meant that the funds available to the local grant giving trusts funded by players of People’s Postcode Lottery have not been able to grow as the number of applications has soared.”

People’s Postcode Lottery is lobbying the UK government to raise legal limits for charity lottery sales from the current £10m to £100m.

MPs recently voted in favour of a change to current legislation in Westminster. A government consultation on raising the limit to £100m ended last autumn and a government decision is expected this year. 

An nfpSynergy poll also found that 16 per cent of people believe charity lottery ticket sales should be capped at all.

'Raising the charity lottery limits is a win'

Charity lotteries contributed £296m to causes last year, up from £256m in the previous year, according to the report.

Players of People’s Postcode Lottery raised £93.3m in 2017, an increase from £6.1m five years before and its trusts have awarded over £40m since 2009 to small charities.

Joe Saxton, report author at nfpSynergy said: “Raising the charity lottery limits is a win for funding for small and large charities, a win for reducing unnecessary costs and administration which the public so dislike, and a win for the people that charities exist to help.”

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