Before you set up your prize draw project, make sure you fully understand and comply with the rules that apply, as you are responsible for complying with them. These include laws on gambling, advertising, privacy and other areas. Be careful not to run a draw that qualifies as a lottery or raffle. Most importantly, you must have a free entry route.
You will need to prepare detailed terms and conditions for the prize draw and upload these when you set up your project. There are rules on what needs to be in your terms and conditions. Below is some information on some of the key points you will need to cover. However, please note, this is not legal advice and you should not rely on it as such. In providing the information Crowdfunder is not taking on any responsibility as a promoter, under the UK Code of Non-broadcast Advertising and Direct & Promotional Marketing (CAP code) or otherwise.
1. Who can enter (usually over 18 and only residents of Great Britain). Include information about anyone else who cannot enter - employees etc.
2. How do users enter the draw
a. Give details of the free entry route to enter the draw (more information below)
b. Explain how to enter on the site ie how much it costs per entry and whether there is a limit on the number of entries per person or can users enter as many times as they like.
3. Full name as the promoter of the competition (Crowdfunder is not a promoter)
4. Start and end date and time of the competition
5. Prize details (what they are and how many)
6. How winners will be selected and announced
7. How prizes can be claimed, and when these will be delivered.
8. How you will handle personal data for the draw. You will need to link to your privacy policy.
The UK Code of Non-broadcast Advertising and Direct & Promotional Marketing provides further information about the above terms, as well as other requirements. You are responsible for ensuring your terms and conditions meet all legal requirements.
Free entry route
To qualify as a free entry route, it needs to be “clearly explained and prominent”. “Entry routes which incur a minimum, unavoidable cost of entering are still likely to be considered free entry routes providing there is no additional cost” e.g. standard postage and telephone rates or entry by email.
In the terms and conditions you should explain how the free entry route works so give the address if it is to be by post, does it have to be a postcard? What if there are multiple entries in an envelope? What if there is insufficient postage?
Make sure you state the free entry route near the top of your project page as well as in the terms and conditions.
Raising for a registered charity
If you are a third party fundraising for a charity there are additional requirements in the CAP code.
Verification of prizes and draws
We may get in touch with you to verify the prizes you are offering or to seek confirmation that the prize draw has been operated in accordance with your prize draw’s terms and conditions. This is to protect supporters and our platform. We ask that you respond to us promptly providing any information or evidence requested so your prize draw is not impacted.
Keep what you raise/flexible funding or all or nothing?
We offer 2 funding methods for your prize draw. This help article provides more information about these. If you choose “keep what you raise” for your prize draw you must award the prizes whether or not you reach your target. If you choose “all or nothing”, you will only award the prizes if your project reaches its target. If you don’t reach your target, all prize draw entries will be refunded to your supporters.
What to do when your prize draw closes
You must issue a project update so that your supporters know the prizes have been awarded in line with your terms and conditions. We may require this, as well as other proof your prize draw has been run fairly and correctly, before we can release the funds raised to you.
Where to get more guidance
You can get more guidance on how to make sure your prize draw or competition complies with relevant rules from the following sources. You may also want to seek legal advice as the requirements are complex:
There is guidance on prize competitions and other relevant information and guidance on the UK Gambling Commission’s website.
UK Code of Non-broadcast Advertising and Direct & Promotional Marketing.
You can find out more about your obligations relating to privacy on the ICO website.
This information should not be construed as legal advice and should not be relied on as such. In providing the information Crowdfunder is not taking on any responsibility as a promoter, under the CAP Code or otherwise.