You cannot run an illegal lottery or raffle on Crowdfunder. However, you can run a prize draw as part of your Crowdfunder project. To do this, you are responsible for making sure your competition complies with all relevant laws.

Here are some of the key things you may need to cover. Please note, this is not legal advice and you should rely on it as such. In providing the information Crowdfunder is not taking on any responsibility as a promoter, under the CAP Code or otherwise.

First and foremost, give all backers the option to pledge on your project without entering the draw and you also need to make sure entry is limited to residents of Great Britain only.

Exercise total transparency by describing your competition accurately. For example, clarify what kind of prize draw you're hosting, as different draws have 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. This should be in the terms and conditions.

Make sure the prize draw terms and conditions are visible on your project page. The terms and conditions must cover the basics of the draw, including your full name as the promoter of the competition, the start and end date of the competition, entry requirements (entry should be limited to residents of Great Britain only), how winners will be selected and announced, prize details, how prizes can be claimed, and when these will be delivered.

The UK Code of Non-broadcast Advertising and Direct & Promotional Marketing provides further information about the above terms, as well as other requirements.

Make sure you comply with the laws relating to handling personal information including what you need to cover in your terms and conditions in relation to this - you can find out more on the ICO website. Only send promotional messages about the competition to those who have given you prior permission to do so.

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 or raffle.

Please also see the guidance on prize competitions and other relevant information and guidance on the UK Gambling Commission’s website.

Wondering about gift aid? Here is our article on Gift Aid.

You must check that your rewards and pledge amounts are eligible before claiming Gift Aid with HMRC. You can find the information on the HMRC website

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