Winning with Nonprofit Lottery Programs: Overcoming Challenges with Confidence

By Victoria Gonzalez-Milroy

As a Senior Account Manager on Ascend’s Client Services team, I work with large nonprofits and charities across North America, such as Hospital Foundations, Humane Societies, Arts & Culture organizations, etc. and help them solve everyday challenges as they launch new lottery programs. Over the years, I have gathered a wealth of experience when it comes to successfully launching, running, and sustaining a new lottery program with nonprofit groups of all shapes and sizes. In this article, I will share some of my learnings with you so that you’re better prepared for your next lottery campaign. 

A unique formula for every charity: Setting a strong foundation for success 

Broadly speaking, my advice to clients is customized based on their overarching goal of the lottery program, the resources that they have available (such as marketing spend, sponsorship, etc.), and their appetite for risk. I also recommend that clients not get caught up with other organizations in their market while running a lottery. After all, it is rarely an apples-to-apples comparison because there are so many variables at play.  

At Ascend, we treat each client in a way that’s most advantageous and rewarding to their unique situation. Whether your organization is the primary hospital foundation in a city with over 10,000 staff members or a rotary club with very few resources, usually, most challenges that you experience will tie into some or all the following factors: 

1. The overarching program goal; 
2. The resources available; and  
3. Your organization’s risk appetite.  

“If a client came to me saying their goal is to raise $100,000 in their first 50/50 campaign, but they only have one person working on the program, 100 people in their email marketing list, and no marketing budget, then I would tell them this is not a realistic goal. So, let’s figure out a plan that fits both your resources, marketing assets, and risk level, and build from there.”

Common challenges in starting and running a sustainable lottery program 

1. Misalignment of strategic goals within your organization 

“I’m not sure how the lottery program fits in with our overall fundraising strategy” 

What I observe with most clients 

Customers get on board with a keen curiosity to try a new program and run an online 50/50 without forecasting how the program will ultimately fit in with their budget and/or fundraising portfolio. Lack of fundraising strategy or vision for the lottery program eventually results in a few other challenges as well. 

How I solve for customer success 

• By outlining goals: Identifying the goals of the lottery program is crucial to its success. Setting short-term and long-term goals that align with the overarching strategic fundraising goal for your organization helps manage expectations and build sufficient budgets in order to grow and sustain a lottery program. 
• By setting benchmarks: Establishing benchmarks ensures that you can make informed decisions when it comes to tactics for things such as marketing and human resources.  
• By guiding clients: Educating customers, guiding them through the charitable gaming-based fundraising landscape, and talking them through how lottery as a fundraising program can be compared to grant writing, signature events, and capital campaigns requiring resources, strategy and investment, can help with alignment of goals and strategy. 

2. Lack of financial resources 

“I don’t have any budget to run a lottery” 

What I observe with most clients 

As with any fundraising program, lotteries require an upfront investment, especially if it’s a new program. This is needed to develop a foundation to build on. However, the concept of lotteries, raffles, and sweepstakes are still very new in the nonprofit space, so donor education through informative campaigns is a key component from the get-go — this needs finances. Eventually, the lack of financial resources is reflected in the budget for key marketing initiatives and that impacts the success of the lottery program.  

How I solve for customer success 

• By event categorization: Categorizing lottery programs as “Signature Events” can be highly favorable because signature events don’t demand the same resources as a gala or golf tournament event would. This can help reframe and better manage budget asks.  
• By identifying alternate sources to support your campaign: Utilizing resources such as the Google Grant for Nonprofits to support a paid digital campaign and collaborating with sponsors and partners for getting featured in branded emails, the 50/50 sites, raffle tickets themselves, can help offset some of the campaign costs. 

3. Resistance to lottery marketing initiatives   

“I don’t want to cannibalize our email list and spend money on marketing” 

What I observe with most clients 

There are a few challenges nonprofits face regarding lottery marketing initiatives: 

• Cannibalization of donor database: Email is a primary asset for most non-profits. It drives revenue for various fundraising initiatives for the nonprofit. Naturally, there is hesitation to email a donor database due to cannibalization and individuals opting out of the list.  
• Risk aversion to investing in marketing, specifically digital marketing: Data is a huge component of any lottery program. There are many customers that don’t know how to implement strategies to track their programs and gather the proper data to then make informed decisions around budgets, marketing, etc. 
• Consistency and creativity: A program will fall flat when people aren’t engaged. There are a lot of resources required to keep lottery campaigns fresh, new and exciting, and on a consistent basis. Often, this is an area that clients need to invest time in.  

How I solve for customer success 

• By implementing analytics: Tracking clicks with UTM (Urchin Tracking Module) codes and using analytics software such as Google Analytics for a deep dive into the numbers can help you make informed decisions. In my role at Ascend, I help clients set up metrics tracking for all channels to enable clients to see which channels are driving revenue and understand the true return on investment (ROI). Bonus: Ascend-branded 50/50 websites are set up with Google Analytics so you’re ready to hit the ground running!  
• By segmenting donors: Implementing proper tracking is essential for donor list segmentation — this allows us to personalize the messaging, target certain behaviors, and begin to develop the organization’s “Lottery Purchaser List/File.” 
• By expanding reach: Investing in digital marketing efforts supports the growth of the lottery program by expanding reach to communities beyond the organization’s core city or region. 
• By being consistent: Consistency is key to developing relationships, building trust, and keeping the audience engaged so that they continue to support your organization. The preparation required in launching a new 50/50 program can take anywhere from four to six weeks and is integral to the success of the campaign. When clients are in the market, there is no time to react and make big changes, so it is important to be prepared and develop plans for email marketing, social media marketing, website placements, and traditional media outlets such as radio, billboards, screens in elevators, etc. prior to the launch.  
• By being creative in your marketing campaigns: If you don’t integrate new components throughout the program (specifically, a monthly-run year-long lottery program), then everything becomes white noise, and your program can fall flat. At Ascend, we offer suggestions and recommendations to get more creative and keep your donors engaged! 

As an account manager, I am committed to helping nonprofits and charities tackle all kinds of challenges confidently. My recommendations are based on several first-hand experiences from working with clients and helping them launch successful lottery programs. I’d be happy to connect with you and help you navigate the world of charitable gaming-based fundraising. Schedule a call now!