The Institute of Fundraising and Lotteries Council have written a joint letter criticising the government’s intention to consult on changing the minimum percentage society lotteries must contribute to good causes.
In the letter to Maria Miller, the Secretary of State for Culture, Media and Sport, Peter Lewis, chief executive of the IoF, and Clive Mollett, chair of the Lotteries Council, state that they have “real concerns that an increase in the current 20 per cent minimum percentage will actually result in less money overall going to good causes.”
The authors advised that an increased contribution could prove too expensive for some charities to continue running a lottery, meaning that getting close to the £126m raised in 2012 again could be under threat.
“We are committed to the fundamental principle that the amount of money that goes to good causes through fundraising activities is maximised, and that this is crucial to maintaining public trust and confidence in charities,” they write.
“However, while increasing the minimum percentage may seem, at first glance, to imply an increase in the amount of money going to good causes, the impact of this change would in fact be very likely to have the opposite effect.”
Lewis added in a supplementary statement that what he would prefer to see is a more flexible implementation of the current 20 per cent to good causes rule, along with regulation eased to make it easier for charities to fundraise.
The Department for Culture, Media and Sport (DCMS) announced at the end of 2012 that it would consult in the New Year about the issue. The consultation has not yet happened, but DCMS still expects it to go ahead.
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