Prize draw guidelines
Version dated: 06.05.2026
Before you set up your prize draw project, make sure you fully understand the rules that apply. You are responsible for ensuring your prize draw complies with them. These include laws on gambling, advertising, privacy and other areas. Most importantly, you must have a free entry route that is just as accessible as your paid entry route.
Crowdfunder encourages prize draw operators and promoters to understand and comply with the Department for Culture, Media and Sport's Voluntary Code of Good Practice for Prize Draw Operators.
You will need to prepare detailed terms and conditions for the prize draw and upload these when you set up your project. We provide a template during the prize draw set-up process for those who want to use it. There are rules on what needs to be in your terms and conditions. Below is some information on the key points you will need to cover. However, please note, this is not legal advice and you should not rely on it as such. In providing the information Crowdfunder is not taking on any responsibility as a promoter, under the UK Code of Non-broadcast Advertising and Direct & Promotional Marketing (CAP Code) or otherwise.
Before You Start
You Are the Promoter
When you run a prize draw on Crowdfunder, you are the promoter. You are legally responsible for ensuring your prize draw complies with UK law. Crowdfunder provides the platform and guidance, but we are not the promoter and do not take on promoter responsibilities under the CAP Code, the Voluntary Code of Good Practice, or UK gambling law.
The Free Entry Route
Every prize draw on Crowdfunder must have a genuine free entry route. This is a legal requirement. A prize draw without a free entry route could be an illegal lottery under the Gambling Act 2005.
Your free entry route must be:
Clearly explained and prominent – not hidden in small print
As easy to use as the paid entry route – the method must not be significantly more burdensome, time-consuming, or complex than entering via Crowdfunder
As accessible as the paid route – free entrants must have the same opportunity to enter multiple times as paid entrants
Entry routes which incur a minimum, unavoidable cost (e.g. standard postage, telephone rates, or email) are still considered free entry routes providing there is no additional cost.
We recommend, and most project owners choose, postal entry as their free entry route.
Make sure you state the free entry route near the top of your project page as well as in the terms and conditions.
Age Eligibility
Prize draws on Crowdfunder must only be open to individuals aged 18 or over.
Setting Up Your Project
How Long Your Prize Draw Will Run
Your prize draw will run on the platform for a minimum of 14 days. This minimum period ensures that people choosing the free entry route have adequate time to participate.
Choosing Your Funding Model
Choose your funding method and target carefully:
Keep What You Raise: You must award the prizes whether or not you reach your target.
All or Nothing: You will only award prizes if your project reaches its target. If you don't reach your target, all entries will be refunded automatically.
Choosing Your Free Entry Method
As specified above, you need to decide how people can enter for free. Postal entry is the most common. But whichever method you choose, it must be as accessible as the paid route.
What Must Be in Your Terms and Conditions
You must prepare detailed terms and conditions for your prize draw, and upload them when you set up your project. We provide a template to help you.
Your terms and conditions must include:
Promoter details
The name and contact details of the prize draw promoter (Crowdfunder is not the promoter – you are).
Who can enter
State who is eligible to enter. Prize draws must only be open to individuals aged 18 or over. Prize draws are usually only open to residents of the United Kingdom.
Include information about anyone who cannot enter – employees, family members, etc.
Details of any other conditions (e.g. must hold a valid passport for an overseas holiday prize draw).
How to enter
a. How to enter via Crowdfunder
Explain how to enter on the site – how much it costs per entry and whether there is a limit on the number of entries per person.
b. How to enter for free
The exact method for free entry (postal address, email address, or online form)
Any format requirements (e.g. must include full name and contact details)
If postal: does it need to be a postcard? What happens with multiple entries in one envelope? What if there's insufficient postage?
Clear confirmation that free entries have the same chance of winning as paid entries
You cannot limit the number of free entries per person unless the same limit applies to paid entries.
Entry period
Start and end date and time for entries.
Prize details
Full description of prizes, how many of each, and approximate retail value
Any other important information about the prizes
Funding model (if using All or Nothing)
If you choose All or Nothing funding, you must include:
A clear statement that the prize draw is conditional on reaching your funding target
Confirmation that if the target is not reached, the draw will be cancelled and all entries refunded
Draw methodology and laws of chance
Include a clear statement that "prizes will be awarded by the laws of chance" or "winners will be selected randomly"
Explain your method of random selection (see Fair Prize Selection in section 5)
Awarding prizes
What verification you will do of the winners. You must verify they are over 18.
When and how winners will be announced
What happens if a winner cannot be contacted
Prize claims and delivery
How prizes can be claimed and when they will be delivered
Any restrictions or conditions on prizes
Data protection
How you will handle personal data
Link to your privacy policy
Explain what data you'll collect, how long you'll keep it, and entrants' rights under GDPR
Running Your Prize Draw
Marketing Your Prize Draw
As a prize draw promoter, you must not use marketing or messaging that:
Suggests participation provides an escape from personal, professional, or financial problems
Implies that prize draw participation is a solution to financial concerns
Presents prize draw entry as an alternative to employment or a way to make money
Targets or appeals to vulnerable individuals or those in financial distress
All marketing must be socially responsible and comply with the UK Code of Non-broadcast Advertising and Direct & Promotional Marketing (CAP Code).
Prize Commitments and Restrictions
Once your prize draw is live:
You cannot downgrade prizes or reduce their value
You cannot substitute prizes unless your original terms explicitly stated this possibility and provided clear criteria
We advise against changing the closing date or extending your draw
Safer Prize Draw Participation
Prize draws should be fun and accessible. However, as a promoter, you have a responsibility to ensure your prize draw does not encourage excessive spending or target vulnerable individuals.
You should not encourage excessive or repeat entries. Consider setting a reasonable cap on the maximum entries per transaction to promote responsible participation. Please see the Voluntary Code for more information about caps.
You should include information about support services in your prize draw communications. The following organisations provide free, confidential support:
Citizens Advice provides free, confidential advice on debt and financial concerns
National Debtline offers free debt advice, or call 0808 808 4000
Samaritans provide emotional support 24/7, or call 116 123
Mind offers mental health support and advice, or call 0300 123 3393
After the Draw
Fair Prize Selection
Your prize draw must be conducted fairly, with all entries having an equal chance of winning. The winner selection must be:
By an independent person who has no interest in the outcome, OR
Supervised by an independent person who can verify the process, OR
Using a verifiably random computer process (we recommend using a third-party random number generator such as gigacalculator.com with our downloadable entry report), OR
Using a certified physical random selection device (such as a lottery ball machine)
Important: Free entries must have exactly the same chance of winning as paid entries. You must include all valid free entries in your draw with equal weighting.
Record keeping: You must document which method you used and be able to demonstrate that the draw was conducted fairly if questioned. We recommend keeping records of your selection process for at least 6 months after the draw.
Announcing Winners and Delivering Prizes
Announcement: We require that you issue a project update confirming prizes have been awarded.
Prize delivery: You must deliver prizes promptly.
Raising for a Registered Charity
If you are running a prize draw where some or all proceeds will go to a registered charity:
You must clearly outline the parameters surrounding charitable contributions. Where possible, publish how much is given to charity and the frequency of such contributions.
If you use the charitable contribution as part of your promotional activity you should meet the requirements in the Code of Fundraising Practice.
You must also comply with the additional requirements in the CAP Code for charitable fundraising promotions.
Verification and Compliance
Verification of Prizes and Draws
We may contact you to verify prizes or confirm the draw has been operated in accordance with your terms. This may include:
Verifying that prizes are genuine and can be delivered as described
Confirming the draw was conducted in accordance with your terms
Requesting evidence of your prize selection methodology
Confirming prizes have been awarded to winners
You must respond promptly (within 5 working days) with any information requested. This may include:
Proof of purchase or availability of prizes
Documentation of your random selection process
Evidence that free entries were included with equal weighting
Confirmation of prize delivery to winners
Suspension and Refunds
We reserve the right to suspend and refund any prize draw that does not comply with these guidelines, our Terms of Use, or applicable UK law.
Suspended funds may be withheld until compliance is demonstrated or may be refunded to entrants.
Where to Get More Guidance
You may want to seek legal advice as the requirements are complex. You can also get guidance from:
This information should not be construed as legal advice and should not be relied on as such. You are solely responsible for ensuring your prize draw complies with all applicable laws and regulations.
As a prize draw promoter, you are expected to comply with:
UK gambling laws
UK data protection laws (GDPR)
Charity fundraising regulations (if applicable)
We also advise you to understand and comply with the Voluntary Code of Good Practice for Prize Draw Operators.