How the Lotto Factory Wants to Change the Way Non-Profits Fundraise
A New Brunswick business plans to transform the way non-profit organizations can raise money.
The Lotto Factory is a customizable platform that allows non-profits and charitable organizations to host 50/50 draws online.
“We recognized that there was a need in the charitable community for online fundraising tools. Many organizations are doing 50/50 draws, Chase the Ace type things, but it’s all being done manually. Some of the processes involved really are lacking in a secure type of format,” said Ric Cuthbertson, president and CEO of the Lotto Factory. “So what we wanted to do was create something that charitable organizations can use and non-profit organizations can use to raise funds.”
Cuthbertson says using the Lotto Factory platform is very similar to purchasing a 50/50 ticket at the corner store, but it also offers enhanced securities and features that aren’t available with the old-fashioned method.
“It’s the same type of rules, but it’s all done online. You can purchase your tickets, your numbers, multiple numbers if you’d like for multiple draws online,” he says.
“What we’ve done as well is enhance the whole process because now an email confirmation is made when you purchase, updates are sent out, winners are announced via email automatically. So we’ve added a tremendous number of features to the platform, which a lot of the current organizations don’t have. We’ve very much streamlined it.”
Cuthbertson says all transactions that take place are done in a secure online format through a third party service.
“The revenue goes directly into the charitable organization’s account,” he says. “The Lotto Factory does not handle the money whatsoever. The organization just pays us for our services.”
Organizations are charged a monthly fee to use the Lotto Factory platform. The Lotto Factory also takes two per cent of the organization’s raised revenue, and gives one per cent of that to the organization’s national or international governing body.
When it comes to charities and non-profits using the platform, different jurisdictions have different regulations. So if an organization would like to use the Lotto Factory platform, they need to follow all proper channels in order to do so. For instance in New Brunswick, they would have to apply for a license from the government.
“We’re very cognisant of the rules and regulations as far as the province goes. Actually, there are only two provinces right now that have figured out how to adjust their legislation to allow for an online gaming process for these charitable draws, British Columbia and Manitoba,” Cuthbertson says. “The federal government changed the laws a couple years ago allowing for online gaming, but only two provinces right now have actually adjusted their legislation to allow for it.”
With many organizations looking for different ways to become more self-sustaining, Cuthbertson says the Lotto Factory offers a way to raise unrestricted funds.
“It would be a tremendous new source of revenue for them. Organizations are really stretched right now and being able to bring in unrestricted dollars, those are the toughest to raise. “ he says. “Typically when you are looking for donations, donors tend to want to donate to a specific area. And the whole funding of the organization, the cost of staff, the office stuff, the telephones the whole nine yards, the revenues for that are an afterthought, not one which is funded typically by donors.”
Lotto Factory plans to officially launch at the end of the month with its first client. Over the past week, Cuthbertson was in the United States pitching the product to different organizations in the country. So far, the feedback has been good.
“It’s been well received. Each state has its own regulations, much like Canada. we have to go province by province, in Canada and state by state in the U.S.”
“This is a very advanced platform. We have to adhere to all the rules and regulations each province and state would include. And that all happens through the charitable organization which applies for the license because we can’t really launch this ourselves. It has to be done with a charitable partner.”