The research consultancy nfpSynergy has proposed a way for charities to claim gift aid on society lotteries without the need for a change in HM Revenue and Customs policy.

Joe Saxton, founder of nfpSynergy, said charities could claim gift aid on a proportion of the price of a lottery ticket, by designating it a suggested donation.

For example, for a ticket marketed as costing £1 the actual price of the ticket would be 20p and 80p would be a suggested minimum donation.

HMRC guidance states that payments to a charity in return for services, rights or goods are not eligible for gift aid. Raffle and lottery tickets fall within this definition. “The payment to purchase a raffle ticket from a charity is not a gift but a payment for the right to enter the raffle,” it says.

The Institute of Fundraising’s manifesto for the 2015 general election calls on the government to increase the amount of money that can be raised through society lotteries by allowing gift aid to be claimed on tickets.

Saxton said getting HMRC to change the rule would take years, but by using his way of working within the rules, a charity could be trialling it within six months.

He has sought legal advice on the scheme and is now looking for charities to test his proposal. Any trial would seek agreement from HMRC before going ahead, he said.   

Saxton said his proposal would still work within the 80:20 rule, under which society lotteries must return a minimum 20 per cent of proceeds to good causes.

Under the scheme, players could insist on paying just 20p for the ticket, but Saxton said it could be made harder for people to go down this route by saying they had to pay by cheque.

Charities would also only be able to claim gift aid back from those who signed a declaration.

Saxton said: “It would be best to trial this with existing supporters that had already signed a gift aid declaration.

“This is a more pragmatic approach. It is trying to maximise the current rule to the full rather than change the rules.”