For many non-profit organisations, educational institutions and community-based entities, sustainable fundraising remains a major challenge.
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While corporate social investment and grants from the National Lotteries Commission (NLC) play a vital role, fundraising lotteries provide another legitimate, regulated and accessible avenue to raise funds for good causes.
As the regulator of lotteries in South Africa, the NLC is mandated to promote awareness of this mechanism and to ensure it is conducted with integrity, transparency, and player protection at its core.
When properly regulated, fundraising lotteries are a powerful tool for social good. Through effective regulation, the NLC enables registered organisations to raise funds in a lawful, fair and accountable manner, therefore protecting the interests of players and the registered societies.
What is a Fundraising Lottery?
In terms of the Lotteries Act No. 57 of 1997, a society lottery, commonly known as a fundraising lottery/raffle, is a scheme where members of the public get a chance to contribute to good causes with an added element of a chance to win a prize. These schemes are usually operated through ticket sales or monthly contributions.
Any scheme that raises funds through a game of chance and offers prizes must be registered with the NLC. It is unlawful to operate a fundraising lottery without registration.
Who can apply?
All registered non-profit organisations and educational institutions may apply and conduct fundraising lotteries, provided that:
- The purpose is charitable, supports participation in sport or cultural activities, or is otherwise approved by the Commission; and
- The lottery is not for private gain or commercial undertaking.
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How to register
The registration process is through submission of completed application forms which are available on the NLC website and at www.nlcsa.org.za. Organisations are advised to apply at least 60 days before the intended start of ticket sales.
To uphold integrity and protect both organisers and participants, the Lotteries Act sets clear limits as follows:
- Use of Proceeds: After deductions for prizes and legitimate expenses, all proceeds must be used solely for the declared good cause.
- Frequency and Value: An organisation may not conduct more than six lotteries per year. The total value of tickets sold per lottery may not exceed R2 million.
- Prizes: The total value of prizes may not exceed R1 million per lottery.
- Expenses: If proceeds are R1 million or less, a maximum of 15% may be used for expenses. If proceeds exceed R1 million, the allowable percentage is 10%.
Promotion, ticket sales and the draw
Promoting the lottery scheme
While traditional advertising can be costly, digital platforms offer a cost-effective way to reach targeted audiences. All promotional material must be responsible, truthful, and consistent with the terms approved by the NLC.
Ticket sales
Sales must comply with the Act and may be conducted via cash or debit card at the organisation’s premises, by post, EFT or bank deposit.
Ticket requirements
All tickets must clearly display the terms and conditions of the scheme as approved by the NLC. These rules may not be altered once ticket sales have commenced.
The draw
On closure of ticket sales, a draw must be conducted transparently and winners announced timeously — whether at the draw venue, via telephone, SMS, WhatsApp, social media, or through local community platforms such as newspapers, municipal offices, churches, schools and retail outlets.
For more information, visit www.nlcsa.org.za.
Featured image: Supplied
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