Dudley Council is set to consider establishing its own community lottery to raise additional funds for good causes and local events across the borough. A proposal will be discussed at the cabinet meeting on 13 August, outlining plans for a lottery designed to generate unrestricted funding for charities and voluntary organisations.
The new lottery scheme will complement, rather than replace, existing grants and statutory funding, with forecasts suggesting it could raise up to £150,000 annually. Anne Boyd, Dudley’s Director of Growth and Infrastructure, highlighted the benefits in a report to cabinet, stating: “The business case for establishing the Dudley Community Lottery is that it provides an additional, voluntary fundraising opportunity for local community and voluntary sector organisations, helping them diversify income sources and generate unrestricted funding to support local activity and community outcomes. Participation will be entirely optional, with residents choosing whether to purchase tickets and which local good causes they wish to support.”
According to the proposal, 50 percent of funds raised through the lottery will be allocated directly to good causes, while a further 10 percent will be contributed to the Dudley Community Celebrations Fund for council redistribution. The council anticipates disbursing approximately £2,500 per ward each year from this fund, though the actual amount will depend on the lottery’s performance.
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Lottery proceeds will also cover prize money, administrative costs, and VAT: 18.2 percent each for prizes and running expenses, with 3.6 percent allocated to VAT.
To manage the lottery, Dudley Council intends to contract Gatherwell Ltd, a private firm with experience operating online lotteries on behalf of local authorities, charities, sports organisations, and schools. The council will first secure the necessary lottery licence before appointing the company.
The cabinet report notes: “The selected provider offers a fully managed service model including operational delivery, compliance support, platform management, marketing support and reporting. This will be complemented by awareness-raising and promotional activity through Dudley Council for Voluntary Service, helping to maximise participation across the local voluntary and community sector.”