Why Prize Draws are a winning strategy for charity fundraising

by Crowdfunder | Jun 19, 2024 | Learn

Why Prize Draws are a winning strategy for charity fundraising

In the ever-evolving landscape of fundraising, charities are constantly seeking innovative and effective ways to engage supporters and generate funds. One such method gaining traction on Crowdfunder is the use of regular prize draws. This approach offers a host of benefits, making it a compelling addition to any charity’s fundraising strategy. Here’s why regular prize draws could be a game-changer for your organisation.

Less resource-intensive crowdfunding

Unlike large-scale fundraising crowdfunding campaigns, regular prize draws require relatively fewer resources to set up and run. They provide a consistent stream of donations, spread out over time rather than relying on one-off events. This model is particularly advantageous for smaller charities with limited staff and budgets, as it allows for sustainable funding without the intense resource drain typical of larger events.

Accessibility and low entry cost

One of the standout features of prize draws is their accessibility. Typically, entry costs are low, making it easy for a wide range of supporters to participate. This inclusivity not only boosts participation rates but also fosters a sense of community and shared purpose among your donor base. By offering an affordable way to contribute, you open the door to new supporters who might not be able to give large sums but still want to make a difference.

Leveraging high-value and unique prizes

Prize draws revolve around the allure of winning something special. These prizes can range from high-value items to unique experiences, often donated by well-known individuals or brands. Collaborations with celebrities or popular brands can significantly amplify the appeal and reach of your prize draws. When supporters know they have a chance to win something extraordinary, the excitement and participation levels naturally increase.

Building partnerships and leveraging networks

Prizes donated by well-known individuals or brands not only enhance the attractiveness of your draws but also leverage their existing networks and fan bases. Partnering with such entities can exponentially increase your campaign’s visibility and credibility. These collaborations can lead to higher participation rates and, consequently, greater fundraising success.

Consistent engagement and awareness

Regular prize draws keep your supporter base consistently engaged. Running monthly draws, for instance, ensures that your cause remains top-of-mind for donors. This frequent interaction helps build a loyal community of supporters who are continuously reminded of your mission and impact. Over time, this can lead to deeper donor relationships and increased long-term support.

Proven success stories

Many small charitable organizations have successfully implemented regular prize draws to raise significant funds.

For example, Patchwork The Store runs monthly prize draws to support women and children affected by domestic abuse, having raised over £100k to date.

War Child has successfully raised over £25,000 through several regular prize draws, securing exclusive items from renowned figures such as Kate Bush, Blue, and the organizers of the Glastonbury Festival.

Such success stories highlight the potential of this fundraising method to generate substantial support for important causes.

How to get started

Starting a prize draw might seem daunting, but with careful planning and execution, it can be a straightforward and rewarding process. Here’s a recommended timeline and the roles you’ll need to assign:

Timeline and planning

  • Duration: We recommend you plan each prize draw to run for 4-6 weeks.
  • Frequency: Consider launching a new prize draw every quarter to maintain momentum and engagement. 

Roles and responsibilities

  1. Gathering amazing prizes: Identify team members or volunteers responsible for sourcing high-value or unique prizes. This could involve reaching out to brands, celebrities, or local businesses.
  2. Spreading the word about your prize draw: Assign someone to handle the promotion of the prize draw across various platforms, including social media, email newsletters, and your website. Read our 5 steps to supercharge your fundraising campaign.
  3. Creating your prize draw project page: Ensure there’s a dedicated person or team to set up and maintain the prize draw page on Crowdfunder. Read our top tips on telling your story.
  4. Press and media outreach: Designate a contact person for engaging with the press and securing media coverage to boost visibility of your prize draw. Read our blog on getting press coverage for your crowdfunding project.
  5. Winner selection: Appoint a fair and transparent process for selecting and announcing winners. See our prize draw guidelines for the guidance you need to ensure your draw meets the legal requirements.

Start your prize draw today

Regular prize draws offer a dynamic and effective way to engage supporters, raise funds, and increase awareness for your cause. If you’re looking for a proven method to boost your fundraising efforts, consider launching a prize draw with a modest target. Read our blog on ‘5 things to consider when setting your target‘.

For more insights and tips on running a successful prize draw, read our blog.

By integrating regular prize draws into your fundraising strategy, you can create a sustainable and exciting pathway to support your mission. Start planning your first prize draw today and watch your charity thrive!

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