What happens to the money earned from Lotto sales?

The money earned from the sale of lotto sales is distributed by the New Zealand Lottery Grants Board (NZLGB) which is part of the Department of Internal Affairs.

The NZLGB distributes money as grants to individuals and community organisations, to help fund projects which provide a community benefit. They also allocate money to Creative New Zealand, the New Zealand Film Commission and Sport and New Zealand.

If you would like to know more about how lotteries grants are distributed visit the Community Matters website.

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How can we get funding for our non-profit organisation?

There are a number of different places non-profit community organisations can apply to for funding. Here are some of them:

  • Grants are available from the Community Organisation Grants Scheme (COGS) and Lottery Grants Board. See the Community Matters website for more information about applying for funding.
  • Local councils may also provide grants to support a range of local community groups and initiatives. Contact your local council to find out what kinds of projects they fund and how to apply for funding support.
  • Local gaming machine societies distribute grants to non-profit community groups. See the Department of Internal Affairs' Funding for Community Groups web page for more information about applying for funding, or to find the nearest gaming society.

You may also find other funding sources by searching Generosity New Zealand’s giveUS database. Access is by subscription only, but many public libraries subscribe and allow library members to access the database for free.

Further information about funding options for non-profit organisations is on the  CommunityNet website

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Are there rules around doing street collections for charity?

If you wish to fundraise for charity on the streets you will need to talk to your local council, as you may need to obtain a licence. You might also be restricted to certain street and times.

Your charity organisation may also have a code of conduct that must be followed - for example many charities that fundraise by going door to door or in the street belong to the Public Fundraising Regulatory Association (PFRA) and follow the PFRA's code of conduct.

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What is crowdfunding?

Crowdfunding is simply raising money by having many people contributing small amounts of money towards a project or cause - (it can be for personal, charitable or business purposes.

There are a number of New Zealand-based and international crowdfunding platforms but the main local donations-based crowdfunding platforms which deal with business, charitable and personal projections are Givealittle and Pledgeme.

Most crowdfunding websites cover their costs by charging fundraisers a fee to use their service. You can read general information about crowdfunding on this Consumer NZ article.

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How do I go about organising a fundraising raffle?

Any games of chance including raffles, must comply with the Lottery Game Rules under the Gambling Act 2003. However, the requirements of the Act for raffles are not onerous and it is a fairly straightforward process to comply with the Act. 

As long as the prizes are worth less than $5000, and you won’t be earning more than $25,000 in raffle ticket sales, you won’t need a gambling license to run the raffle. If tickets will be sold to the public, the drawing must be open to the public. The money earned from the tickets sales should benefit the community.

It’s important to know that there are certain products which you are not allowed to offer as prizes, e.g. firearms, liquor and tobacco products. 

Also, the rules will differ depending on the value of the prize or prizes:

  • If the prize or prizes have a retail value of no more than $500 you should read the rules for Class 1 Gambling;
  • If the prize or prizes have a retail value of no more than $5000 you should read the rules for Class 2 Gambling;
  • If the prize or prizes have retail value of more than $5000 you should read the rules for Class 3 Gambling.

For more information about the rules for raffles and games of chance see the Department of Internal Affairs' website.  

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I want to raise money for victims of a disaster. Do I have to join a registered charity?

People would probably feel a lot more confident about giving you money if you were collecting for a registered charity. There are likely to be a variety of reputable organisations involved in assisting people affected by a disaster, that need volunteers to help with street appeals or other work relating to the disaster. Look on the Volunteering New Zealand website for organisations which may require such assistance. 
You might also consider starting up crowd funding account. 
The Council for International Development’s website has a list of organisations in New Zealand that provide aid and development assistance to other countries. Many of these organisations are involved not only in immediate relief assistance for disasters but they also support ongoing reconstruction initiatives in disaster areas as well as longer term community development in those countries.

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Are there any rules around begging in the streets?

Rules around begging are set out by your local authority in the bylaws. Where begging in a public place is allowed, the main restriction is that people are not permitted to beg in a way which may intimidate or cause a nuisance to others.

Begging on private property (for example, in a shopping mall) would be at the discretion of the property owner.