Home

Consultation on thresholds for free draw registration

The Fundraising Regulator proposes introducing clearer requirements for registration and use of the Fundraising Badge by free draw and prize competition operators. The criteria for registration of new free draw and prize competition operators and renewal of existing registrants will include a requirement to demonstrate a minimum level of charitable contributions.

This consultation was launched on 10 March 2026 and closes on 3 April 2026.

You can read more about this consultation in our blog


Proposal 1: Incremental thresholds

The Fundraising Regulator proposes introducing charitable contribution thresholds incrementally from September 2026 to align with the start of the 2026/27 levy reporting year.  This will allow new and existing registrants to increase their charitable contributions gradually and retain use of the Fundraising Badge during the implementation period. 

The proposed thresholds of charitable contribution are: 
  1. In 2026/27 – minimum of 10% of ticket sales (before expenses) 
  2. In 2027/28 – minimum of 15% of ticket sales (before expenses) 
  3. In 2028/29 and beyond – minimum of 20% of ticket sales (before expenses) 
The final threshold of contributing 20% of ticket sales to charitable causes aligns with the levels of contributions required for licensed charitable competition operators, such as small society lotteries. 





Proposal 2: Demonstrating contributions

If the Fundraising Regulator introduces these thresholds, we will also need to establish clear criteria for free draw and prize competition operators to demonstrate their charitable contributions.  

In line with the requirements for legally registered charitable competitions such as society lotteries, we propose asking operators to provide an annual declaration outlining income related to all ticket sales (before expenses) and the value of charitable contributions for the previous financial year as part of their registration and renewal process.