Yes, it’s possible to run a prize competition as part of your Crowdfunder project. To do this, you must make sure your competition complies with the following guidelines.
First and foremost, give all backers the option to pledge on your project without entering the competition.
Exercise total transparency by describing your competition accurately. For example, clarify whether it’s a prize draw, a raffle, a lucky dip or a skills-based competition. Each has different terms and conditions.
Offer your backers a way to enter the competition for free and explain clearly how to do this on your project page. For example, provide a business address or PO box where they can send their competition entries.
Make sure the terms and conditions are visible on your project page. These must include your full name as the promoter of the competition, the start and end date of the competition, entry requirements, how winners will be selected and announced, prize details, how prizes can be claimed, and when these will be delivered.
Be open about the way you will use the personal information that you collect from those who enter the competition, and only send promotional messages about the competition to those who have given you prior permission to do so.
Please do not automatically enter backers into your competition if it launches after your project has gone live. Only enter those who have both seen and agreed to your project terms and conditions.
Finally, please make sure your competition complies with all relevant laws including gambling and privacy laws, as well as the UK Code of Non-broadcast Advertising and Direct & Promotional Marketing. You must make sure that your competition does not qualify as an illegal lottery.