Charity Lotteries in Canada
An examination of charities holding mega lotteries in Canada
Greg Thomson
Director of Research
[email protected]
Ernie Cheng
Analyst
November 2013
With contributions from:
Kate Bahen
Sahil Batra
Myrna Forsythe
Rachel Greiner
This report was created to help donors understand that the purchase of
charity lottery tickets should be viewed primarily as entertainment, not as a donation.
For more information on Canadian charities, please visit our website at
www.charityintelligence.ca or call 416.363.1555.
1
Executive Summary
▪ Charity lottery ticket buyers should consider charity lotteries primarily
as entertainment and not as a substitute for donations, due to the relatively small portion of revenue retained by the charity.
▪ Our survey of 30 major charity lotteries in Canada showed that, on
average, 27% of each dollar of ticket revenue is retained for funding
charity programs; the remainder is used to pay for prizes and for
marketing and operational expenses. By way of comparison, the
average amount of donations retained from other fundraising methods
by the same charities was 72%.
▪ Only 5 of 30 studied lotteries were more efficient than the government lottery average of 31% in retaining revenue to fund programs.
▪ While some charity lotteries advertise relatively high odds of winning
prizes, average prize payout amounts are usually less than those of
major government lotteries.
▪ Charity lotteries provide charities with a source of unrestricted funds,
allowing the charities to freely fund their operations, and they can help
to raise the profile of the charities with their associated marketing.
Lottery Revenue
Other Fundraising Revenue
27%
28%
73%
Charity Programs
Prizes and Operations
72%
Charity Programs
Fundraising
Revenue breakdown based on three most recent years of data for 30 selected charities
2
Charity lotteries in Canada
It is important to acknowledge that although gambling is
used clearly for fund development
and revenue generation, it is
not philanthropy and should
not be positioned as such. It is
a business initiative with risks
and benefits directed towards
a specific purpose.
– Dr. David Korn,
University of Toronto
Charities have long used gambling as a way to earn money to support
their charitable programs. In fact, gambling was once the sole domain of
charities or religious organizations until provincial governments launched
their own gambling corporations, after realizing how lucrative gaming
could be. Charitable gaming has come a long way from the simple bingo
hall and 50/50 ticket, although these certainly still exist. "Mega-raffles" –
those with revenues over $1m – are more common than ever and lotteries
such as the Princess Margaret Hospital Lottery and Canadian Cancer Society
Lottery are virtually household names in Canada.
In 2011, 16,962 charity lotteries were licensed for operation Canada-wide
and this number includes only the larger lotteries that required provincial rather than municipal licensing. Charity Intelligence estimates total
revenue from all charity lotteries Canada-wide in excess of $750m, with
net funding available to the charities (lottery revenue less all costs for
prizes, marketing and lottery operations) of $200m. Although this is but
a fraction of the $2 billion that government lotteries earned in profit, it is
still an important revenue stream for charities. Moreover, lottery profits are
typically an unrestricted source of funding, meaning that charities can use
the money to support programs at their own discretion, without needing
to spend the funds for a pre-determined purpose, as is often the case for
charitable donations.
FIGURE 1. Charitable Lottery Revenue, 2011 ($millions)1
33
28
28 21
ON
AB
52
271
BC
QC
SK
82
NS
NB
MB
93
132
NL
1 Source: AGCO, AGLC, Service Nova Scotia, MGCC, BC Gaming Policy and Enforcement Branch, CPRG.
Gross revenue for SK, QC, NB and NL estimated based on Canadian Partnership for Responsible Gaming
net revenue figures using 2011 average of 30% going to the charity.
3
FIGURE 2. Average Ticket Revenue ($millions) for Canadian Charity Lotteries
(3 Most Recent Available Years)
Heart & Stroke - ON*
Princess Margaret Hospital Foundation - ON
Canadian Cancer Society - ON
STARS - AB
SickKids Foundation - ON
Calgary Health Trust - AB
VGH & UBC Hospital Foundation - BC
BC Children’s Hospital Foundation - BC
QEII Health Sciences Centre Foundation - NS
Children’s Hospital of Eastern Ontario Foundation - ON
Hospitals of Regina Foundation - SK
University Hospital Foundation - AB
Royal Alexandra Hospital Foundation - AB
Volunteer Ents of the Health Sciences Centre - MB
Health Sciences Centre Foundation - MB
Grey Nuns of Edmonton Hospital Foundation - AB
Canadian Red Cross - ON
Edmonton Oilers Community Foundation - AB
St. Boniface Hospital & Research Foundation - MB
Peace Arch Hospital Foundation - BC
Kinsmen Care Foundation - AB
Variety - The Children’s Charity - BC
Canadian Cancer Society - AB
Alberta Cancer Foundation - AB
London Health Sciences Foundation - ON
Big Brothers Big Sisters Edmonton - AB
Children’s Wish Foundation - SK
Health Care Foundation of St John’s - NL
Canadian Hard of Hearing Association - NL
Foundation Maurice Tanguay - QC
Red Deer Regional Health Foundation - AB
Ottawa Hospital Foundation - ON
10
20
30
40
50
60
70
$millions
*Note: 2012 data for Heart & Stroke includes consolidated national data
Despite their benefits, lotteries do have some drawbacks that are important
to consider. Firstly, charity lotteries are not guaranteed to be profitable for
the charity. In fact, in 2011 in British Columbia, 2% of the charities actually lost money in operating lotteries. The most striking case is that of the
Royal Columbian Hospital Foundation. After selling only 44,000 out of a
maximum of 120,000 tickets, the charity lost $3.3m in its first attempted
vacation home lottery. From our sample of 30 major lotteries, the only
two examples of lotteries operating at a loss were Peace Arch Hospital and
Community Foundation which did not hold its annual lottery in 2010
but brought it back in 2011, reporting a loss in fiscal 2012 of $746k on
gaming revenues of $4.0m and the joint Royal Alexandra Hospital Foundation and University Hospital Foundation’s Dream Away Lottery that lost
$1.6m on $4.4m of revenues in 2011, its only year of operation. As well,
in fiscal 2010, both the New Brunswick and Newfoundland divisions of
4
the Canadian Cancer Society introduced lotteries that lost money for the
charities and were subsequently discontinued. In F2010, the two lotteries
took in $3.4m in revenue and lost $515k.
Lotteries have been attributed to
helping finance major government
projects including the building of
the Great Wall of China, making
repairs to Rome under Emperor
Augustus Caesar, and in the 15th
Century, lotteries were held in
Belgium and Holland to raise
money for town fortifications
and to help the poor.
In colonial America between
1744 and 1776, 200 lotteries
were sanctioned and played a
major part in financing libraries,
churches, and colleges. The
universities of Princeton, Columbia
and Pennsylvania were founded
on lottery proceeds.
The second drawback is how costly lotteries are to run. Charity lottery
ticket buyers may not be aware of how much of each dollar spent on
lottery ticket revenue actually goes towards funding charitable programming. To that end, Ci examined each of the Major 100 charities in Canada
(the charities receiving the most in donations from Canadians) and found
fourteen that reported lottery results in their audited financial statements.
Ci included an additional 16 charities that held lotteries with revenues
over $1.5m. Over 2012, these 30 charities captured lottery revenues of
$376m – about 50% of estimated Canada-wide charitable lottery revenue
(see Appendix A for discussion on whether our sample is representative of
the larger set of lottery data).
Our analysis indicated a wide range of performance in terms of how
much of each dollar of ticket revenue went towards "doing good", i.e.,
being spent on the charity's programs. The two best lotteries in this respect
were operated by the Fondation Maurice Tanguay in Quebec and STARS in
Alberta, which retained 60% and 54% respectively for their programs over
the past three years. The STARS lottery has a long history of consistently
selling out its allotment of tickets, and also doing so rapidly (allowing
the charity to reclaim some planned marketing expenses). The Fondation
Maurice Tanguay has consistently held a relatively modest house lottery for
over 15 years with the lowest three-year prize payout of charities disclosing
this information. The least efficient lotteries examined kept less than 5%
for charity purposes.
It is also notable that Ci found only three major lotteries for which the
charities did not disclose a breakdown of lottery operations to allow us to
include them in this analysis. The Children’s Hospital of Eastern Ontario in
Ottawa operated a lottery with 2012 revenues of $8.2m, but no breakout
of associated costs. This would rank as the 10th largest charity lottery
revenue. As well, the St. Boniface Hospital and Research Foundation in
Winnipeg had $6.4m in revenue from lotteries and events in 2012 and the
Pacific National Exhibition in Vancouver had $4.9m in lottery revenue in
2011 with no further detail.
5
FIGURE 3. Share of Lottery Revenue Available to Charity (3-Year Average)2
Foundation Maurice Tanguay - QC
STARS - AB
Hospitals of Regina Foundation - SK
London Health Sciences Foundation - ON
QEII Health Sciences Centre Foundation - NS
Govt Lotteries (2010 & 2011 net profit)
Canadian Red Cross - ON
Heart & Stroke - ON*
Children’s Wish Foundation - SK
Canadian Hard of Hearing Association - NL
Princess Margaret Hospital Foundation - ON
Big Brothers Big Sisters Edmonton - AB
BC Children’s Hospital Foundation - BC
Calgary Health Trust - AB
Volunteer Ents of the Health Sciences Centre - MB
Health Sciences Centre Foundation - MB
Canadian Cancer Society - ON
Health Care Foundation of St John’s - NL
Red Deer Regional Health Foundation - AB
VGH & UBC Hospital Foundation - BC
University Hospital Foundation - AB
Royal Alexandra Hospital Foundation - AB
Edmonton Oilers Community Foundation - AB
Canadian Cancer Society - AB
Alberta Cancer Foundation - AB
Kinsmen Care Foundation - AB
Ottawa Hospital Foundation - ON
SickKids Foundation - ON
Grey Nuns of Edmonton Hospital Foundation - AB
Variety - The Children’s Charity - BC
Peace Arch Hospital Foundation - BC
10%
20%
30%
40%
50%
60%
70%
By way of comparison, government lotteries retained 31.4% of their ticket
revenues as profit3. This makes them, on average, more efficient than all but
five of the charity lotteries examined. There are some significant structural
differences that can account for the difference in efficiency. One reason is the
fact that provincial lotteries typically run continuously throughout the year;
customers do not need to receive direct mail nor as much mass media advertising to remind them that the lottery exists and what the deadlines may be
to buy tickets. Another is how prize amounts are determined and paid for.
Charity lotteries (officially referred to as raffles) are required to commit to
a certain set of prizes ahead of time; if not enough tickets sell, prize payouts
may be disproportionately large. In the case of government lotteries, jackpot
announcements are only estimates, as prize amounts are fixed percentages of
actual ticket revenue. Thus, the government is never at risk of overspending
on prizes.
2 Based on three years of most recent financial statements
3 Weighted average of six provinces reporting profitability of lottery operations in 2010 and 2011
(BC, AB, MB, SK, ON, QC)
6
There are two major expenses that explain why charity lotteries have such
high costs.The first is paying for prizes.While some ticket buyers may assume
that charity lottery prizes are donated, this is far from true. Of the 30 lotteries
examined, 14 provided specifics on prize payouts and these charities spent
an average of 38% of revenues on lottery prizes. From the perspective of a
lottery ticket buyer, getting a high proportion of your money paid back in
the form of prizes is desirable, but for the purposes of a charity it is not.
The second major cost category is the expenditure on marketing and operations of the lotteries. The mega-raffles typically provide 24/7 call centres
and websites to buy tickets online. Often charities use experienced external
lottery management providers to handle these functions on their behalf.
Further, marketing a lottery is a major cost, frequently involving sending a
direct mail piece to every household in the province, coupled with television, print and radio advertising.
FIGURE 4. Charity Lottery Expense Breakdown (3-Year Average)
25.3%
38.2%
36.5%
Net to Charity
Marketing & Operations
Prizes
Note: Based on 14 charities providing breakdown of lottery expenses.
It is important to bear in mind that the portion of the operational expense
going into marketing can be seen as another benefit to the charity. Lottery
advertising may increase awareness of the charity, which in turn may help
when conducting other fundraising events. This may explain why lotteries
that capture even small amounts of ticket revenue for charitable programs
are still in operation; as long as the lottery can cover its own costs, the
charity benefits from the marketing that is included in the operation of
the lottery. The increased awareness may increase direct fundraising dollars
and help the charity educate an increased audience.
While this makes sense from the standpoint of the charity, there may be
some drawbacks from the donor’s perspective for two reasons. First, if one
charity increases its marketing spend, other charities are likely to follow
suit, resulting in minimal benefit for charities overall and increased costs
7
for all. Second, inefficient lotteries “dilute” the value of the entire pool of
charity lottery dollars, with less of the pool of funds available for charitable programming. It is better for the sector overall if more funds can be
allocated to the most efficient lotteries.Some provinces have regulations
that mandate a minimum level of efficiency and prize payout to prevent
charity lotteries from being unfair to ticket purchasers. For example, the
Alberta Gaming and Liquor Commission mandates that prizes must be
at least 20% of ticket revenue and other expenses less than 30% of ticket
revenue. On the other hand, in Nova Scotia there are no such stipulations
(see Appendix B for specific regulations by province). However, given the
inconsistency in rules across provinces, we believe ticket buyers should
research the specific costs of the lotteries they may be interested in rather
than relying on government regulations.
Ticket buyers who may be surprised by the relatively small amounts that
are retained by some charity lotteries may want to consider the alternative
of direct donation over buying a lottery ticket. While there may not be the
possibility of winning a prize, a significantly larger share of each dollar
goes towards funding the charity's actual programs. Of the 30 selected
charities, an average of 27% of lottery revenue was retained for charity
purposes. Compare that figure to 72% for the same charities if the funds
were raised via fundraising methods other than the lottery. This is not to
say that charity lotteries should be avoided by donors, only that Ci believes
that ticket buyers should not think of charity lotteries as a replacement
for direct donations. So long as the tickets are paid for out of the donor's
"lottery" budget rather than from their donation budget, the lottery can
still be a beneficial fundraising tool.
FIGURE 5. Allocation of Fundraising Revenue4
Lottery Revenue
Other Fundraising Revenue
This is not fundraising;
this is entertainment.
– Sue Caruthers
27%
28%
73%
Charity Programs
Prizes and Operations
72%
Charity Programs
Fundraising
4 Based on three most recent years of audited financial statements for 30 selected major charity lotteries
8
Of course, many lottery ticket purchasers view the charity lottery as a
combination of philanthropy and gambling. To appeal to the gambler,
some charities emphasize the limited number of tickets or the high odds
of winning a prize, thus making the lottery odds seem favourable. In fact,
in comparison with government lotteries, the charities with published
data on prize payouts showed the opposite – in most cases, charity lotteries
paid out less on average than the most popular government lotteries. Note
that we do not use odds of winning a prize in this comparison, as prize
values and ticket prices vary significantly by lottery. Instead, we look at, on
average, how much of each dollar spent can the ticket buyer expect to get
back each time they purchase a ticket. What we found is that the provincial government lotteries provided higher payouts (average of 54%) than
the charity lotteries, which provided a range of 27% to 53%. So while
payouts vary, lottery ticket buyers should not assume that the odds for
charity lotteries are any better than those for typical government lotteries.
FIGURE 6. Share of Lottery Revenue Distributed as Prizes (3-Year Average)
60%
50%
40%
54% 53%
51% 50%
44% 43% 43% 42%
40% 39%
30%
35% 34%
30%
27%
20%
10%
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Being an informed lottery ticket buyer
Everybody … will be willing
to hazard a trifling sum for the
chance of considerable gain …
and would prefer a small chance
of winning a great deal to a great
chance of winning little.
– Alexander Hamilton
So what is our recommendation for potential charity lottery players? The
answer depends on what donors’ motivations are for playing the lottery.
If donors are interested solely in contributing to a specific charity, in all
cases it will be more efficient to donate directly to that charity, rather than
buying a lottery ticket.
For most who are interested in both charitable giving and winning a prize,
the choice is more difficult. If you are passionate about any single charity,
find out what the prize payout and expense amounts are, and make sure
they are comparable to what other lotteries deliver before buying a ticket.
If you don’t favour any specific charity, we recommend you consider the
9
more efficient lotteries first (see data starting pg 10). Choosing to buy a
lottery ticket from a more efficient charity lottery has two advantages; first,
it lets more dollars be used for charitable purposes. Second, it encourages
less efficient lotteries to work harder to run more efficiently.
Using lotteries to raise funds introduces high marketing and operational
costs and is less efficient than directly-donated funds. However, from the
perspective of the charity, lotteries can bring in millions of additional
funding dollars that they would not have access to if they had not held
these events. On balance, so long as donors view charity lotteries primarily
as entertainment and do not buy tickets out of their “donations” budget,
lotteries can be a great benefit to charities. It is up to the lottery ticket
buyer to ask the charities about their costs and to make an informed choice
to buy a ticket from an efficient lottery.
10
Detail of Charity Lotteries
Charity
Prov
Alberta Cancer Foundation ............................................................................................................ AB
BC Children's Hospital Foundation ................................................................................................. BC
Big Brothers Big Sisters Edmonton ................................................................................................. AB
Calgary Health Trust ....................................................................................................................... AB
Canadian Cancer Society – AB ........................................................................................................ AB
Page
11
12
13
14
15
Canadian Cancer Society – ON ...................................................................................................... ON
Canadian Hard of Hearing Association – NL ................................................................................... NL
Canadian Red Cross ....................................................................................................................... ON
Children's Wish Foundation ............................................................................................................ SK
Edmonton Oilers Community Foundation ...................................................................................... AB
16
17
18
19
20
Fondation Maurice Tanguay ........................................................................................................... QC
General Hospital (Grey Nuns) of Edmonton Hospital Foundation .................................................. AB
Health Care Foundation of St. John’s.............................................................................................. NL
Health Sciences Centre Foundation .............................................................................................. MB
Heart & Stroke Foundation............................................................................................................ ON
21
22
23
24
25
Hospitals of Regina Foundation ....................................................................................................... SK
Kinsmen Care Foundation/ Alberta Children's Hospital Foundation .............................................. AB
London Health Sciences Foundation ............................................................................................. ON
Ottawa Hospital Foundation.......................................................................................................... ON
Peace Arch Hospital Foundation .................................................................................................... BC
26
27
28
29
30
Princess Margaret Hospital Foundation ........................................................................................ ON
QEII Health Sciences Centre Foundation ........................................................................................ NS
Red Deer Regional Health Foundation ........................................................................................... AB
Royal Alexandra Hospital Foundation............................................................................................. AB
SickKids Foundation ........................................................................................................................ SK
31
32
33
34
35
STARS .............................................................................................................................................. AB
University Hospital Foundation ...................................................................................................... AB
Variety – The Children’s Charity ..................................................................................................... BC
VGH & UBC Hospital Foundation .................................................................................................... BC
Volunteer Enterprises of the Health Sciences Centre.................................................................... MB
36
37
38
39
40
11
Alberta Cancer Foundation
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
5.0
4.7
4.3
4.5
4.6
2010
2011
2012
2013
0.0
Allocation of ticket revenue
100%
80%
41.4%
50.0%
50.4%
51.9%
37.3%
33.0%
33.0%
12.7%
16.5%
15.1%
2011
2012
2013
60%
40%
40.8%
20%
17.8%
0%
2010
Charity
Operations
Prizes
Founded in 1985, the Alberta Cancer Foundation's (ACF) mission is to deliver progress in cancer research,
prevention, treatment and care by generating community investment for Alberta's coordinated research strategy,
the Cross Cancer Institute, Tom Baker Cancer Centre, and 15 other cancer centres throughout the province.
The ACF makes grants to research, patient programs, screening and early diagnosis, access to leading-edge
equipment, continuing education for clinicians and researchers, and training for the next generation of cancer
specialists and researchers.
ACF hosts the Cash & Cars and More Lottery jointly with the Canadian Cancer Society Alberta. The current grand
prize is a $1.4m home. Proceeds are split by the two organizations.
Lottery information is derived from figures published in the charity’s audited financial statements.
12
BC Children's Hospital Foundation
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
9.1
9.5
2009
2010
17.8
17.7
2011
2012
5.0
0.0
Allocation of ticket revenue
100%
80%
60%
77.7%
70.7%
73.0%
72.9%
29.3%
27.0%
27.1%
2010
2011
2012
40%
20%
22.3%
0%
2009
Charity
Operations/Prizes
Founded in 1982, BC Children's Hospital Foundation (BCCHF) raises funds to support and enhance the delivery
of paediatric care in British Columbia. The Foundation provides funding to BC Children's Hospital, the Child &
Family Research Institute, and Sunny Hill Health Centre to support research into childhood diseases, the purchase
of medical equipment, and a range of child health education and training programs.
The most recent lotteries held by BCCHF are the 2013 Choices Lottery with a $2m grand prize or the choice of
other prize packages worth over $2m, and the similar 2012 Dream Lottery.
Lottery information is derived from figures published in the charity’s audited financial statements.
13
Big Brothers Big Sisters Edmonton
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
5.0
3.4
3.9
3.7
4.0
2008
2009
2010
2013
0.0
Allocation of ticket revenue
100%
80%
60%
73.2%
67.2%
71.1%
77.0%
32.8%
28.9%
23.0%
2009
2010
2013
40%
20%
0%
26.8%
2008
Charity
Operations/Prizes
Big Brothers Big Sisters of Edmonton merged with the Boys and Girls Clubs of Edmonton in 2011 to jointly
support the children and youth of Edmonton through the provision of safe places to be between school and home,
and caring, supportive mentoring relationships.
The 2013 Dream Home Lottery represents the 33rd annual lottery for BBBS Edmonton. The Dream Home grand
prize package is worth $1.4m.
Lottery information is derived from figures published in the charity’s audited financial statements. Due to the amalgamation and changes in year-end, no data is available for 2011 and 2012 data is amalgamated into F2013.
14
Calgary Health Trust
Lottery ticket revenue
Millions of dollars
25.0
19.1
20.0
15.0
15.7
15.3
2010
2011
20.0
10.0
5.0
0.0
2012
2013
Allocation of ticket revenue
100%
80%
60%
73.8%
70.9%
70.9%
75.7%
26.2%
29.1%
29.1%
24.3%
2010
2011
2012
2013
40%
20%
0%
Charity
Operations/Prizes
Founded in 1996, Calgary Health Trust (CHT) connects donor passions with health care needs in the Calgary
region. CHT raises funds for medical equipment, capital projects, and patient care and program support at the
Foothills Medical Centre, Peter Lougheed Centre, Rockyview General Hospital, and Women's Health. Donors can
make designated donations or establish donor-advised funds, directing proceeds to the health care program they
feel passionate about.
CHT operates two lotteries annually; the Lifestyles Lottery and the Foothills Home Lottery with a most recent
grand prize of a $2.3m estate home.
Lottery information is derived from figures published in the charity’s audited financial statements.
15
Canadian Cancer Society – AB
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
5.0
4.7
4.3
4.6
4.6
2010
2011
2012
2013
0.0
Allocation of ticket revenue
100%
80%
42.3%
49.1%
50.5%
51.9%
36.7%
33.4%
33.5%
14.2%
16.2%
14.6%
2011
2012
2013
60%
40%
41.7%
20%
16.0%
0%
2010
Charity
Operations
Prizes
The Alberta and Northwest Territories division is the fourth largest provincial division of the Canadian Cancer
Society (CCS), with 9 regional offices that provide services to people with cancer. Like all CCS divisions, its mission
is the eradication of cancer and the enhancement of the quality of life for people living with cancer.
Proceeds from the annual Cash & Cars and More Lottery are shared with the Alberta Cancer Foundation. The current
grand prize is a home worth $1.4m. Proceeds are split by the two organizations.
Lottery information is derived from figures published in the charity’s audited financial statements.
16
Canadian Cancer Society – ON
Lottery ticket revenue
35.0
32.9
Millions of dollars
30.0
25.0
20.0
20.5
18.6
20.7
15.0
10.0
5.0
0.0
2010
2011
2012
2013
Allocation of ticket revenue
100%
80%
45.0%
49.3%
35.5%
33.0%
27.0%
36.1%
60%
40%
43.7%
50.3%
20%
0%
11.3%
0.5%
2010
2011
Charity
37.5%
2012
Operations
30.9%
2013
Prizes
The Ontario division is the largest provincial division of the Canadian Cancer Society (CCS), with 7 regional
offices and 31 community offices. Like all CCS divisions, its mission is the eradication of cancer and the enhancement of the quality of life of people living with cancer.
CCS runs the Daffodil Daily Lottery with three grand prizes of $1m, and the Fall Lottery with a grand prize of
$1.5m. Of note is the dramatic increase in efficiency for the CCS lottery in 2012; the share of ticket revenue that
went to the charity jumped from 0.5% in 2011 to 37.5% in 2012. According to Ci interviews with CCS management, this increase was due largely to the timing of a lottery beginning near the end of fiscal 2011 with a large
portion of expenses being recognized in 2011, with the revenues for that lottery recognized in 2012. The change
in efficiency was not due to any significant changes in how the lottery was operated.
Lottery information is derived from figures published in the charity’s audited financial statements.
17
Canadian Hard of Hearing Association – NL
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
5.0
2.0
2.1
2.2
2.2
2009
2010
2011
2012
0.0
Allocation of ticket revenue
100%
80%
35.8%
42.3%
41.6%
28.0%
25.9%
29.7%
32.5%
2010
2011
45.7%
60%
24.7%
40%
20%
0%
39.5%
2009
Charity
Operations
31.6%
22.7%
2012
Prizes
The Newfoundland and Labrador division of the Canadian Hard of Hearing Association works to improve the
quality of life for hard of hearing people of all ages in Newfoundland and Labrador. It also works to promote
understanding of the prevalence, causes and prevention of hearing loss, as well as to advocate for accessibility in
public places.
The charity has held the Ultimate Dream Home Lottery for 25 years. The current grand prize is a Dream Home
package worth $530k.
Lottery information is derived from figures published in the charity’s audited financial statements.
18
Canadian Red Cross
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
6.4
6.1
5.7
5.4
2010
2011
2012
2013
5.0
0.0
Allocation of ticket revenue
100%
80%
30.5%
31.6%
33.1%
35.8%
36.4%
34.0%
33.6%
32.0%
32.8%
28.0%
2010
2011
2012
2013
36.1%
60%
40%
20%
0%
Charity
Operations
35.9%
Prizes
Founded in Canada in 1896, Canadian Red Cross (CRC) works to improve the lives of vulnerable people by
mobilizing the power of humanity in Canada and around the world. It seeks to be the leading humanitarian
organization through which people voluntarily demonstrate their caring for others in need. CRC is one of 187
members of the International Red Cross and Red Crescent.
The Canadian Red Cross hosts several lotteries, including the Great Saskatchewan Treasure Hunt, Canadian Red Cross
Lottery (in Ontario), and Lotomania (Nova Scotia). The largest is the Ontario lottery with a grand prize of $250k.
Lottery information is derived from figures published in the charity’s audited financial statements, including all
revenues and expenses associated with lotteries and gaming.
19
Children's Wish Foundation
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
5.0
2.7
3.3
3.0
2010
2011
2012
3.7
0.0
2013
Allocation of ticket revenue
100%
80%
60%
66.9%
62.0%
33.1%
38.0%
2010
2011
71.7%
78.7%
40%
20%
0%
Charity
28.3%
2012
21.3%
2013
Operations/Prizes
The Children's Wish Foundation was founded in 1984 and has granted over 16,000 wishes to date. Its objectives
are: 1) to grant wishes to children suffering from high-risk, life-threatening illnesses; 2) to fund research with
respect to high-risk, life-threatening diseases that particularly afflict children; 3) to provide grants to health care
facilities in Canada which provide medical care to children eligible to receive wishes from the Foundation; 4) to
provide grants to not-for-profit organizations in Canada which provide services, facilities, or activities to enhance
the quality of life of children eligible to receive wishes from the Foundation.
The foundation hosts an annual Children’s Wish Home Lottery in Saskatchewan with a grand prize of building a
custom home anywhere or $1.0m in cash.
Lottery information is derived from figures published in the charity’s audited financial statements.
20
Edmonton Oilers Community Foundation
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
7.2
6.1
5.3
5.2
2010
2011
2012
5.0
0.0
2009
Allocation of ticket revenue
100%
80%
44.7%
54.8%
54.5%
32.1%
33.7%
13.1%
11.7%
2010
2011
50.4%
60%
40%
20%
0%
29.9%
25.4%
2009
Charity
Operations
27.7%
21.9%
2012
Prizes
Since 2001, the Edmonton Oilers Community Foundation (EOCF) has raised funds to serve various needs in
Northern Alberta. The foundation focuses on educational, health and wellness and youth-related activities.
The EOCF hosts the Winner’s Choice Lottery with the most recent grand prize being the choice of a house or $1.5m cash.
Lottery information is derived from the charity’s audited financial statements.
21
Fondation Maurice Tanguay
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
5.0
1.8
1.9
1.8
2.0
2009
2010
2011
2012
0.0
Allocation of ticket revenue
100%
80%
60%
40%
28.8%
27.6%
28.0%
26.0%
15.4%
12.5%
12.4%
12.3%
55.8%
59.9%
59.6%
61.7%
2009
2010
2011
2012
20%
0%
Charity
Operations
Prizes
The mission of the Maurice Tanguay Foundation is to help children with disabilities across eastern Quebec
by taking concrete actions directly with families or with organizations that support them.
The charity operates la Maison Tanguay lottery with the grand prize of a house valued at over $600k or $500k cash.
Lottery information is derived from figures published in the charity’s audited financial statements.
22
General Hospital (Grey Nuns) of Edmonton Hospital Foundation
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
6.5
6.3
2009
2010
5.0
5.1
5.8
2011
2012
0.0
Allocation of ticket revenue
100%
80%
60%
87.5%
82.1%
12.5%
17.9%
2009
2010
99.1%
91.8%
0.9%
8.2%
2011
2012
40%
20%
0%
Charity
Operations/Prizes
Founded in 1990, the Grey Nuns Hospital Foundation is one of two foundations that make up the Caritas
Foundation (the Misericordia Hospital Foundation being the other), which raises funds to support programs
and services, health equipment, research, and education at Covenant Health’s six locations in Edmonton and
St. Albert, Alberta. Covenant Health is Canada’s largest Catholic health care organization, with 18 health care
centres throughout Alberta.
The charity operates the Caritas Foundation Lottery with a grand prize package, including a Showhome, of $1.9m.
Lottery information is derived from figures published in the charity’s audited financial statements.
23
Health Care Foundation of St. John’s
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
5.0
2.7
2.8
2.7
2010
2011
2012
0.0
Allocation of ticket revenue
100%
80%
60%
70.5%
77.3%
78.3%
22.7%
21.7%
2011
2012
40%
20%
0%
29.5%
2010
Charity
Operations/Prizes
The Health Care Foundation of St. John’s raises funds to support five local hospitals and health centres. Collectively,
these five centres encounter one million patients per year.
The Foundation’s first lottery was launched in 2008 and is the largest such lottery in the province. The latest
lottery was the HCF Hospital Home Lottery with a grand prize of a $940k home plus $10k in cash.
Lottery information is derived from figures published in the charity’s audited financial statements.
24
Health Sciences Centre Foundation
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
5.0
6.2
6.6
5.9
2010
2011
2012
5.0
0.0
2009
Allocation of ticket revenue
100%
80%
60%
65.3%
64.8%
34.7%
35.2%
76.2%
78.4%
23.8%
21.6%
2011
2012
40%
20%
0%
2009
2010
Charity
Operations/Prizes
Health Sciences Centre Foundation (HSCF) supports the Health Sciences Centre (HSC), a health care teaching and
research facility in Winnipeg, serving people in Manitoba, northwestern Ontario and Nunavut. HSC is the designated
Trauma Centre for Manitoba, as well as the centre for transplants, burns, neurosciences and paediatric care. The
Foundation is one of two charities supporting the HSC, with the Volunteer Enterprises of the Health Sciences
Centre also providing funding to the Centre.
HSCF operates the annual Home Lottery and 50/50 draw with a current grand prize home worth $1.4m.
Lottery information is derived from figures published in the charity’s audited financial statements. 2010 – 2012
data may include minor revenues and expenses from other fundraising activities (more detailed 2009 information
disclosed that lotteries accounted for 99.2% of Special Projects revenues).
25
Heart & Stroke Foundation
Lottery ticket revenue
75.8
80.0
Millions of dollars
70.0
62.7
60.0
50.0
46.2
44.8
2009
2010
40.0
30.0
20.0
10.0
0.0
2011
2012
Allocation of ticket revenue
100%
80%
36.3%
31.3%
29.3%
68.7%
60%
40%
40.0%
42.2%
22.5%
28.7%
28.5%
31.3%
2009
2010
2011
2012
41.2%
20%
0%
Charity
Operations
Prizes
The Heart & Stroke Foundation strives to eliminate heart disease and stroke, and reduce their impact through
research, treatment, and advocating for healthy living. In 2012, the provincial divisions of the Heart & Stroke
(except for New Brunswick) were consolidated into one national entity. The data presented represent the Ontario
division lottery until 2011 and consolidated data for 2012.
Heart & Stroke runs three major lotteries in Ontario, including the Heart & Stroke Lottery with a grand prize of
$2m, the Daily Cash Lottery, with a grand prize of $1m, and the Calendar Lottery offering prizes up to $100k.
New Calendar Lotteries have been started in Alberta and BC. Heart & Stroke is the largest lottery in average annual
ticket revenues over the past three years.
Lottery information is derived from figures published in the charity’s audited financial statements.
26
Hospitals of Regina Foundation
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
7.1
7.4
8.1
8.4
2009
2010
2011
2012
5.0
0.0
Allocation of ticket revenue
100%
80%
42.9%
43.6%
44.3%
43.6%
16.6%
15.5%
15.9%
15.7%
40.5%
40.9%
39.8%
40.7%
2009
2010
2011
2012
60%
40%
20%
0%
Charity
Operations
Prizes
Founded in 1987, the Hospitals of Regina Foundation works to enhance the level of care in Regina’s hospitals for
the people of southern Saskatchewan. The charity provides funds to Regina’s three hospitals: the Pasqua Hospital,
Regina General Hospital, and the Wascana Rehabilitation Centre.
The Foundation operates a Home Lottery with a grand prize of an $850k home plus $25k in cash.
Lottery information is derived from figures published in the charity’s audited financial statements.
27
Kinsmen Care Foundation/Alberta Children's Hospital Foundation
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
6.1
5.2
4.7
4.5
2008
2009
2010
2011
5.0
0.0
Allocation of ticket revenue
100%
80%
60%
0%
48.1%
34.8%
35.5%
16.6%
16.3%
10.8%
2009
2010
2011
51.8%
70.6%
40%
20%
48.6%
37.5%
29.4%
2008
Charity
Operations
Prizes
The Kinsmen Care Foundation operates a lottery to fund the Alberta Children’s Hospital Foundation (ACHF).
Founded in 1957, ACHF raises funds for excellence in child health, research and family-centred care. In 2006, it helped
fund the building of a new children's hospital.
Annually, the Kinsmen Care Foundation runs the Kinsmen Lotto on behalf of the ACHF with a current grand prize
of a $1.3m Showhome.
Lottery information was derived from the unaudited financial statements of the Kinsmen Care Foundation.
28
London Health Sciences Foundation
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
5.0
0.0
3.8
3.4
3.0
2.2
2.3
2.2
2010
2011
Dream Lottery
2.2
2012
2013
Millionaire Lottery
Allocation of ticket revenue
100%
80%
60%
67.4%
63.0%
68.3%
72.1%
32.6%
37.0%
31.7%
27.9%
2010
2011
2012
2013
40%
20%
0%
Charity
Operations/Prizes
London Health Sciences Foundation (LHSF) raises funds to support London Health Sciences Centre (LHSC). LHSC is
home to three hospitals and two family medical centres in London, Ontario, and cares for over a million patients per year.
Until 2012, LHSF has held two lotteries: the Dream Lottery with a grand prize of one of 3 Dream Home Packages or
$1m cash, and the Millionaire Lottery. Proceeds from the Dream Lottery are shared by the LHSF, St. Joseph’s Health
Care Foundation and Children’s Health Foundation. The Millionaire Lottery was discontinued in 2013.
Lottery information is derived from figures published in the charity’s audited financial statements. Lottery revenue
includes total lottery revenue received by LHSF from both lotteries. Allocation of ticket revenue includes only the
operations of the Dream Lottery as information on the expenses of the Millionaire Lottery are not broken out on
audited financial statements.
29
Ottawa Hospital Foundation
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
5.0
0.0
1.0
1.6
1.6
1.6
2008
2009
2010
2011
Allocation of ticket revenue
100%
80%
60%
72.7%
91.5%
85.2%
81.8%
40%
20%
0%
27.3%
8.5%
2008
Charity
2009
14.8%
18.2%
2010
2011
Operations/Prizes
The Ottawa Hospital Foundation (OHF) raises funds to support the Ottawa Hospital and the Ottawa Hospital
Research Institute. The hospital is the largest acute care hospital in the nation and handles over a million patient
visits per year.
OHF operates the We All Win Lottery, with proceeds shared with the Children’s Hospital of Eastern Ontario (CHEO)
Foundation, offering four grand prize town homes.
Lottery information is derived from figures published in the charity’s audited financial statements, excluding the Staff
lottery. Ci assumed the Staff lottery in 2010 had the average of 2009 and 2011 operating margins as gross revenue
not provided for 2010. Note that 2012 & 2013 lottery information is not included, as only net amounts were
presented, making it impossible to calculate total revenue and share spent on operations and prizes.
30
Peace Arch Hospital Foundation
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
5.0
5.8
5.0
4.0
0.0
0.0
2009
2010
2011
2012
Allocation of ticket revenue
100%
80%
60%
91.4%
84.0%
118.6%
40%
20%
0%
8.6%
2009
16.0%
2010
-20%
2011
2012
-18.6%
Charity
Operations/Prizes
The Peace Arch Hospital and Community Health Foundation (PAHF) is the fundraising arm of the Peace Arch
Hospital, a community hospital located in White Rock, British Columbia. The majority of the PAHF’s grants go
towards purchasing medical equipment at the Peace Arch Hospital.
The charity operated the WinFall Lottery from 1995 until 2009 and then again in 2011 but it has subsequently
been discontinued. The 2011 lottery resulted in a net loss in F2012 of $746k in the charity’s gaming, which also
included a $11k raffle with undisclosed expenses.
Lottery information is derived from figures published in the charity’s audited financial statements.
31
Princess Margaret Hospital Foundation
Lottery ticket revenue
80.0
Millions of dollars
70.0
60.0
56.9
50.0
50.2
52.2
2010
2011
56.8
40.0
30.0
20.0
10.0
0.0
2009
2012
Allocation of ticket revenue
100%
80%
38.3%
41.3%
40.0%
39.1%
35.3%
31.0%
53.6%
29.0%
27.4%
23.4%
29.0%
31.8%
2009
2010
2011
2012
60%
40%
20%
0%
34.3%
Charity
Operations
Prizes
Founded in 1982, Princess Margaret Hospital Foundation (PMHF) fundraises and grants to Princess Margaret
Hospital and the Ontario Cancer Institute. Its focus is to conquer cancer in our lifetime. It is reportedly one of the
top 5 cancer research centres in the world.
PMHF holds two major lotteries: the Home Lottery with a $3.8m grand prize home for their most recent lottery
and the Welcome Home Sweepstakes, with the most recent grand prize being a $4.3m house. PMHF is the second
largest lottery in terms of annual revenue of the lotteries that Ci examined.
Lottery information is derived from figures published in the charity’s audited financial statements.
32
QEII Health Sciences Centre Foundation
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
5.3
4.5
6.5
7.0
6.8
7.2
5.0
5.4
6.3
0.0
2010
2011
Home Lottery
2012
2013
Lifestyles Lottery
Allocation of ticket revenue
100%
80%
60%
76.8%
70.3%
67.7%
67.3%
23.2%
29.7%
32.3%
32.7%
2010
2011
2012
2013
40%
20%
0%
Charity
Operations/Prizes
The Queen Elizabeth II Hospital Foundation is responsible for fundraising on behalf of the Queen Elizabeth II Hospital.
The major goal of the raised funds is to support the purchase of specialized equipment, major projects, programs
for patient care and education.
The foundation hosts two major lotteries each year: the Home Lottery with a grand prize of a $1.1m Showhome,
and the Lifestyles Lottery with a $1m grand prize.
Lottery information is derived from figures published in the charity’s audited financial statements and excludes
the employee-only Grand-a-Week lottery.
33
Red Deer Regional Health Foundation
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
5.0
1.6
1.8
1.7
2010
2011
2012
0.0
Allocation of ticket revenue
100%
80%
49.3%
38.4%
38.2%
60%
40%
29.1%
20%
0%
41.6%
35.8%
32.5%
14.9%
2010
Charity
2011
Operations
20.1%
2012
Prizes
The Red Deer Regional Health Foundation was founded in 1993 and has the mission of enhancing health care
excellence in central Alberta by raising funds to provide state-of-the-art medical equipment and services.
The Foundation holds their annual Hospitals’ Lottery offering a Grand Prize Dream Home. Proceeds from the
2013 Hospitals’ Lottery will be invested in standardizing equipment in exam and procedure rooms of the
outpatient department.
Lottery information is derived from figures published in the charity’s audited financial statements, including only
data from the Hospitals’ Lottery, excluding goods-in-kind and sponsorship.
34
Royal Alexandra Hospital Foundation
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
2.2
5.0
6.7
6.2
6.2
6.3
0.0
2010
2011
Full House Lottery
2012
2013
Dream Away Lottery
Allocation of ticket revenue
100%
80%
60%
67.3%
0%
72.4%
25.9%
27.6%
2012
2013
95.9%
40%
20%
74.1%
32.7%
2010
4.1%
2011
Charity
Operations/Prizes
The Royal Alexandra Hospital Foundation (RAHF) raises funds to support the Alberta-based Royal Alexandra
Hospital, as well as other causes such as the Lois Hole Hospital for Women and the CK Hui Heart Centre.
RAHF operates the Full House Lottery, which is shared with the University Hospital Foundation. As well, in 2011,
they jointly started the Dream Away Lottery, which operated at a $800k loss to RAHF but was subsequently discontinued in 2012.
Lottery information is derived from figures published in the charity’s audited financial statements.
35
SickKids Foundation
Lottery ticket revenue
Millions of dollars
25.0
19.1
20.0
20.8
16.2
15.2
15.0
10.0
5.0
0.0
2010
2011
2012
2013
Allocation of ticket revenue
100%
34.6%
33.6%
50.0%
53.6%
9.4%
15.4%
12.8%
4.3%
2010
2011
2012
2013
80%
35.4%
60%
90.6%
40%
60.4%
20%
0%
Charity
Operations
Prizes
Founded in 1972, SickKids Foundation (SKF) is the fundraising organization for the world-renowned Hospital
for Sick Children in Toronto. With over 300,000 donors, SKF's revenue base is the second largest of all children's
hospitals in North America. It is Canada's fourth largest foundation by total assets (funding reserves) and is the
third largest grant-making foundation. The Foundation's fundraising is driven by the belief that improving the
health and well-being of children is one of the most powerful ways to improve society.
SKF holds the Dreams & Discoveries lottery in spring and fall, most recently offering a $1.5m grand prize.
Lottery information is derived from figures published in the charity’s audited financial statements.
36
STARS
Lottery ticket revenue
35.0
30.8
Millions of dollars
30.0
25.0
20.0
17.2
17.2
2010
2011
18.4
15.0
10.0
5.0
0.0
2012
2013
Allocation of ticket revenue
100%
80%
39.7%
43.4%
41.0%
60.3%
56.6%
59.0%
2010
2011
2012
49.7%
60%
40%
20%
0%
Charity
50.3%
2013
Operations/Prizes
Shock Trauma Air Rescue Service's (STARS) primary service is a helicopter air ambulance service to provide transportation and emergency medical care to patients in need. STARS operates in Alberta, Saskatchewan and Manitoba.
STARS also offers education and training services for its staff and medical care partners, and operates an Emergency
Link Centre (ELC) to coordinate emergency rescue activities across its service area.
STARS holds an annual lottery that has sold out for the past 18 years. The most recent grand prize is a $1.2m house.
The lottery is the second most efficient of the 30 charities examined, retaining an average of 55% of revenues for
the charity.
Lottery information is derived from figures published in the charity’s audited financial statements. The charity
changed its fiscal yearend in 2013 from December to March, thus there is significant overlap in the data for 2012
and 2013.
37
University Hospital Foundation
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
2.2
5.0
7.3
6.8
6.2
6.2
0.0
2009
2010
Full House Lottery
2011
2012
Dream Away Lottery
Allocation of ticket revenue
100%
80%
60%
65.8%
66.2%
94.8%
40%
20%
0%
80.6%
34.2%
33.8%
5.2%
2009
2010
Charity
2011
19.4%
2012
Operations/Prizes
The University Hospital Foundation (UHF) was created in 1962 to raise funds to support the University of
Alberta Hospital, the Mazankowski Alberta Heart Institute, and the Edmonton Clinic. The foundation has raised
over $153m to date.
Lottery funding is provided by the Full House Lottery (also benefiting the Royal Alexandra Hospital Foundation)
with a grand prize of a $1.7m home. The Dream Away Lottery was started in 2011 (jointly with the Royal Alexandra Hospital Foundation) and operated at a loss of $800k to UHF for the year and was subsequently discontinued in 2012.
Lottery information is derived from figures published in the charity’s audited financial statements.
38
Variety – The Children’s Charity
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
5.0
5.1
4.1
4.8
4.6
2010
2011
2012
0.0
2009
Allocation of ticket revenue
100%
80%
60%
86.5%
93.1%
40%
100%
92.3%
20%
0%
13.5%
6.9%
2009
2010
Charity
7.7%
2011
2012
Operations/Prizes
Founded in 1965, Variety - The Children’s Charity of BC (also known as the Variety Club of British Columbia) is
focused on children in BC who have special needs. It raises funds and provides grants to individuals and organizations for equipment, supplies and programs.
Up until 2012, Variety operated the Children’s Charity Lottery. In 2013, Variety is operating the much smaller
Show of Hearts Telethon Lottery with grand prize of a dream vacation worth $12k.
Lottery information is derived from figures published in the charity’s audited financial statements excluding joint
venture lotteries as these revenues and expenses are not broken out.
39
VGH & UBC Hospital Foundation
Lottery ticket revenue
Millions of dollars
25.0
20.0
19.0
16.5
16.8
16.2
2010
2011
2012
15.0
10.0
5.0
0.0
2013
Allocation of ticket revenue
100%
80%
60%
79.6%
75.6%
81.9%
79.6%
20.4%
24.4%
18.1%
20.4%
2010
2011
2012
2013
40%
20%
0%
Charity
Operations/Prizes
Founded in 1980, VGH & UBC Hospital Foundation fundraises for the latest, most sophisticated medical equipment,
world-class research, and improvements to patient care for Vancouver General Hospital, UBC Hospital, GF Strong
Rehab Centre, and Vancouver Coastal Health Research Institute.
The foundation runs the Hometown Heroes Lottery and Millionaire Designer Home Lottery with a grand prize of
$2.5m cash or home and other prize bundles valued at over $2.8m.
Lottery information is derived from figures published in the charity’s audited financial statements.
40
Volunteer Enterprises of the Health Sciences Centre
Lottery ticket revenue
Millions of dollars
25.0
20.0
15.0
10.0
7.4
6.4
6.3
2011
2012
5.0
0.0
2010
Allocation of ticket revenue
100%
80%
39.1%
46.8%
43.3%
60%
40%
20%
0%
28.5%
31.5%
32.4%
2010
Charity
30.7%
21.7%
26.0%
2011
2012
Operations
Prizes
The Volunteer Enterprises of the Health Sciences Centre (VEHSC) supports the Health Sciences Centre (HSC), a
health care teaching and research facility in Winnipeg, serving people in Manitoba, northwestern Ontario and
Nunavut. HSC is the designated Trauma Centre for Manitoba, as well as the centre for transplants, burns, neurosciences and paediatric care. VEHSC is one of two charities supporting the HSC, with the Health Sciences Centre
Foundation also providing funding to the Centre.
VEHSC operates the annual Lifestyles Lottery and 50/50 draw with a current grand prize of a Showhome or
$1.0m in cash.
Lottery information is derived from figures published in the charity’s audited financial statements.
41
Appendix A – Representativeness of sample lotteries
To see whether these selected lotteries were representative of the entire population of charitable lotteries, we
compared figures in the provinces of Ontario and Alberta for 2011. By focusing on the million-dollar-plus lotteries,
our selected charity lotteries represented 64% and 50% of the total charity lottery revenues in Ontario and Alberta,
even though only a small proportion of the total number of lotteries was examined. However, there were differences in the reported efficiency of the lotteries in the two samples. The Ci selected lotteries in Ontario distributed
5% less of their ticket revenues for charity than did the average lottery, while the gap in Alberta was 4%.
Ontario 2011
Ci examined
Province-wide
lotteries
total
Number of large
charity lotteries
Total charity
lottery revenue
Percentage of
revenues available
for charity
Alberta 2011
Ci examined
Province-wide
lotteries
total
5
6
9
292
$271m
$66m
$131m
28%
26%
30%
8
201
$173m
23%
7
There are two possible sources of the difference in efficiency between the sampled lotteries and the provincewide lottery data. One possibility is that, as our sampled lotteries tend to be larger in size, they may end up
spending more on marketing and operations than do smaller lotteries. For example, some of the major lotteries
will use a combination of TV, radio and newsprint advertising, and send direct mail to all of the residents in
their service area to promote the lottery. In addition, they often use external lottery management companies
that provide services such as 24/7 call centres for ticket buyers, payment processing, marketing, auditing of the
drawing of winning tickets, etc. Smaller lotteries may rely more on free volunteers and word-of-mouth advertising.
Another possibility is differences in reporting. Ci’s analysis of the 30 selected charity lotteries is based on audited
financial statements published by the charity. Provincial statistics are based on data submitted by the charity to the
provincial agency after the lottery, but this data may not have been externally audited.
5 Number of Ontario licenses issued for charitable lotteries with over $50,000 in gross revenue
6 Number of Alberta licenses issued for charitable lotteries with over $10,000 in gross revenue
7 AGCO estimated revenue for all sizes of charity lotteries; no estimate available for only large lotteries
42
Appendix B – Charity Lottery Regulations by Province
Province
Regulatory body
Alberta
Alberta Gaming and
Liquor Commission
Gaming Policy and
Enforcement Branch
Manitoba Gaming
Control Commission
Gaming Control Branch
Service NL
BC
Manitoba
New Brunswick
Newfoundland and
Labrador
Nova Scotia
Ontario
PEI
Quebec
Saskatchewan
Alcohol and
Gaming Division
Alcohol and Gaming
Commission of Ontario
Consumer, Labour and
Financial Services Division
Régie des alcools,
des courses et des jeux
Saskatchewan Liquor and
Gaming Authority
Minimum allowed
prize amounts
20% of ticket revenue
Maximum allowed
expense amount
30% of ticket revenue
None
25% of ticket revenue (for
lotteries under $250k revenue)
20% of ticket revenue
None
None
1/12 of ticket revenue
None
None
Total return to licensee
should be 50% of revenue
None
20% of ticket revenue
None
None
None
Not found
Not found
1/12 of ticket revenue
30% of ticket revenue
Authors:
Greg Thomson is Director of Research at Charity Intelligence. His interest in
charity lotteries was piqued when he noticed a couple of lotteries that returned
little or no funds to the charity, prompting him to want to understand the
economics of this funding method. Greg holds a BA in Economics from
Queen’s University and an MBA from Harvard University.
Ernie Cheng volunteered as an analyst for Charity Intelligence, tirelessly collecting
and compiling data on charity lotteries and drafting this report. Ernie earned
a BSc in Life Sciences and MSc in Neurophysiology from Queen’s University
and an MBA from the Rotman School of Management at the University of
Toronto. Ernie is missed by all of his colleagues at Charity Intelligence.
Be Informed.
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Have Impact.
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