Charity Lotteries and Deregulation / Public Perceptions of Executive Pay is and what it should be

Could lotteries raise more
money for charities and
other good causes?
Joe Saxton
July 2012

First: what do the people
who run lotteries think
about the current
situation?

Attitudes towards lotteries - part 1
Lotteries are more regulated than any other area of our fundraising -33% -5% 0% 29% 23%

The current regulations for lotteries make it more difficult to generate
-38% -2%
-10% 20% 15%
income from lotteries

The need to account for every ticket involves extra costs for us -48% -1%
-7% 20% 15%

The need to account for every ticket distributed (when sending more than
-38% -1%
-10% 23% 9%
£20 worth to cold prospects) and then returned involves extra…

We find the limit on prize money/value restrictive -53% -1%
-7% 16% 12%

The current regulations for lotteries increase our costs -51% -4%
-4% 16% 9%

Not sure/Not relevant
It is difficult to achieve the 20% minimum return to the beneficiary when
-39% -6% -14% 17% 6%
recruiting from cold prospects Disagree strongly

We find it difficult to avoid infringing the Gambling Commission/ Local Disagree
-34% -3% -19% 7% 11%
Authority regulations
Neither agree nor disagree
We would like to be able to run an individual lottery larger than the current
-47% -5% -17% 8% 6%
£4m ceiling
Agree

It is difficult to keep to the £10m annual income ceiling -42% -13% -27% 3% 4%
Agree strongly

-100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%
“How does lottery regulation and administration affect your charity? How does lottery regulation and administration
affect your charity? ” Ranked by Agree strongly/Agree

Base: 181 participants
Source: Jun 11, nfpSynergy 3


-38% -2%
-10% 20% 15%

-7% 20% 15%

-38% -1%
-10% 23% 9%

-7% 16% 12%

-4% 16% 9%

-39% -6% -14% 17% 6%

-34% -3% -19% 7% 11%
-47% -5% -17% 8% 6%
£4m ceiling
Agree

Agree strongly

-100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%


Not sure/Not relevant Disagree strongly Disagree Neither agree nor disagree Agree Agree strongly

We find that lotteries appeal to a certain kind of donor -40% -1%
-1% 38% 8%

Our income from lotteries has increased over the last two
-33% -3%
-8% 35% 6%
years

We would be interested in exploring being part of a coalition
-43% -1%
-6% 28% 4%
to run larger lotteries with bigger prizes

We expect our income from lotteries to increase over the
-46% -1%
-4% 29% 3%
next two years

We have found that lottery income has held up well during
-41% -2%
-12% 24% 7%
the recession

We find lottery ticket buyers tend to give in a variety of other
-36% -7%-15% 22% 7%
ways as well

We have found online lotteries very successful -69% -2%
-7% 5% 1%

-100 -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%
%
“Please state to what degree you agree/disagree with the statements below ” Ranked by Agree strongly/Agree



-1% 38% 8%

-33% -3%
-8% 35% 6%
years

-43% -1%
-6% 28% 4%

-46% -1%
-4% 29% 3%
next two years

-41% -2%
-12% 24% 7%
the recession

-36% -7%-15% 22% 7%
ways as well

-7% 5% 1%

-100 -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%
%



-1% 38% 8%

-33% -3%
-8% 35% 6%
years

-43% -1%
-6% 28% 4%

-46% -1%
-4% 29% 3%
next two years

-41% -2%
-12% 24% 7%
the recession

-36% -7%-15% 22% 7%
ways as well

-7% 5% 1%

-100 -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%
%

9
Source: Jun 11, nfpSynergy

How much money did participants raise from lotteries
54%

11% 12%
9%
6%
4% 4%

£0-50k £51-100k £101-250k £251-1000k £1001-4000k £4001k + Don't know
How much annual income do you get from lottery ticket sales?


How much donated income did respondents raise
from lotteries

62%

17%

6% 7%
3% 3% 2%

£0-25k £26-50k £51-100k £101-250k £251-500k £501k + Don't know
How much annual income do you get from donations with lottery ticket sales?


How many people took part in respondents’ lotteries

69%

15%

6% 5%
4%
1%

0-10k 10-25k 26-50k 51-100k 101-200k 201k +
Approximately how many individuals buy lottery tickets from your organisation every year?


How many lotteries did respondents run a year
57%

20%
15%

3% 4%
1%

1 to 2 3 to 5 6 to 10 11 to 15 16 to 25 26+
Please indicate how many lotteries you run each year?


What do the general public
think about lotteries?

Key statistics 57%
think lotteries run

46% by charities should
be able to compete
Opposed to with the National
capping the size of Lottery and the
charity lotteries Health Lottery
12%
played Health
Lottery in last
54%
played National
month 61%
Lottery in last Opposed to laws
month and regulations
which stop any
68% other lotteries from
Opposed to capping raising as much
the number of tickets money as the
charity lotteries can National Lottery
21% sell
played a charity
lottery in last month

15

Demographics of lottery players
100%

90%
National Lottery Other lottery or raffle (eg school, charity, etc) Health Lottery

80%

70%
70%

60% 60%
60% 57% 58% 58%
54% 53%
51% 51% 52%
49%
50%

40%

31%
30%
24% 25%
23% 23% 23% 23%
21% 20% 20% 21% 20%
20% 18% 18% 18% 18%
12% 13% 12% 13%
10% 11% 11% 10% 11%
10% 6% 6%

0%
Total Male Female AB C1 C2 DE 16-24 25-34 35-44 45-54 55-64 65+

“Have you bought a ticket from the National Lottery/Health Lottery/any other lottery or raffle (e.g. school, charity, etc) in
the last month?” Yes

Base: 1,000 adults 16+, Britain.
Source: Charity Awareness Monitor, Mar 12, nfpSynergy 16

“Do you think that lotteries run by charities should be able to
compete with the National Lottery and the Health Lottery?”
100%

90% 18%
24% 26% 25% 25%
27%
33% 28% 26% 26% 26% 29% 28%
35% 31%
80%

17% Not sure
70%
14% 14% 16% 15%
16% 20% 19% 12%
16% 16%
13% 24%
60%
15% 19%
No
50%

40%
Yes
65%
30% 61% 60% 58% 60% 60%
57% 56% 56% 55% 56% 56%
50% 50% 49%
20%

10%

0%
Total Male Female AB C1 C2 DE 16-24 25-34 35-44 45-54 55-64 65+ Recent Non
charity donor
donor


61% opposed to laws and regulations stopping any
other lotteries raising as much as the National Lottery
100%

90% 21%
27% 25% 25% 26% 26% 23% 23% 25% 26% 28%
32% 30% 29%
33%
80%

Not sure
70%

60%
No
50%
64% 61%
60% 63%
61% 64% 56% 63% 62% 59% 64% 61% 61%
40% 58%
60% Yes
30%

20%

10%
15% 15% 12% 13% 16%
12% 10% 11% 14% 12% 12% 11% 12% 11%
7%
0%
charity donor
donor

“Do you think that there should be laws and regulations which stop any other lotteries from raising as much money as
the National Lottery does?”


Balance of opinion against charity lottery prizes being
capped
100%

21% 17% 19% 16% 14% 19%
90%
24% 20% 21% 22% 20% 21% 24%
28% 27%

80%

Not sure
70%
38%
36% 44%
60%
46% 49% 45%
46% 49% 46% No
43% 50% 50%
50% 50%
51% 48%

40%
Yes
30%

48%
44%
20% 40%
34% 34% 33% 33% 36%
29% 32% 32%
28% 26%
10% 22% 25%

0%
charity donor
donor

“Do you think that the size of the prizes in charity lotteries should be capped?”


Very few think the number of tickets sold by an
individual charity lottery should be capped
100%

16% 18%
90% 19% 23% 20% 19% 22% 19% 18%
22%
18% 16% 18% 23%
25%

80%

Not sure
70%

60%
No
50% 72% 68% 67% 68%
68% 65% 68% 69% 71% 66% 72% 63% 71% 67%
70%
40%
Yes

30%

20%

10%
16%
12% 13% 12% 12% 13% 12% 12% 9% 12% 11% 11% 14% 14%
8%
0%
charity donor
donor

“Do you think the size (i.e. number of tickets sold) of an individual charity lottery should be capped?”


What changes are we
suggesting to lottery
regulation?

The campaign: to deregulate lotteries to reduce
costs and allow more money to be raised

• Organisations involved: The Lotteries Council, Institute of
Fundraising, CAF, nfpSynergy, People Postcode
Lottery, Brightsource, 121 Fundraising, The Woods Group, and
Rogavi.

• The aim: to allow charities raise more money at lower cost
with less hassle than currently

• The timing: Consultation now open and ends on May 28th

• Our aim: to get as many organisations as possible to sign up
to our aims and then use that support to lobby government
and the Gambling Commission
22

Changing the 80:20 rule

• The issue: Lottery regulations state that 20% of the
proceeds should go to the beneficiary

• The problem: its very difficult to build up new lotteries
from „cold‟ and keep to this regulation

• The solution: make the 80:20 rule apply over time and
across all a charities‟ lotteries

• But – should we have the 80:20 rule at all

23

Remove age verification for 16 and 17 year
olds

• The issue: Online lotteries need to provide age
verification for anyone buying tickets by debit card in
case they are under age

• The problem: its very expensive to age verify online
negating any income from debit card purchasers

• The solution: carry out random „spot checks‟ for debit
card users rather than blanket verification

24

Dual registration for remote and non-remote
lotteries

• The issue: the same lottery carried out
online/telephone and via paper must be separately
registered

• The problem: its makes dual lotteries twice the hassle
for no obvious reason

• The solution: assimilate remote and non-remote
licences into one registration based on the standards of
non-remote licences

25

Allow cloak-room tickets in exempt lotteries

• The issue: The legislation requires confirmation for
ticket purchasers in exempt lotteries

• The problem: this technically makes the use of
cloakroom tickets in exempt lotteries illegal

• The solution: permit the use of standard pre-printed
“cloakroom” tickets in exempt lotteries

26

Give charity lotteries proportionate
regulation to the gambling risk they pose

• The issue: Charities lotteries are regulated as if they
were casinos

• The problem: Charities get the heavy hand of
regulation despite the fact there is no evidence that
charity lotteries cause any problem gambling

• The solution: create a dedicated charity team and
processes at the Gambling Commission, raise the
threshold for GC regulation to £1 million and create a
central stop list of people who wish to be exempt from
lottery mailing

27

Remove the turnover limits on charity
lotteries

• The issue: charity lotteries are capped both in terms of
their turnover and their prize money

• The problem: this makes it harder for charities to „go
large‟ in terms of their lottery fundraising

• The solution: remove the turnover limits altogether for
charity lotteries

28

What next?

• We have completed the consultation and are now
analysing the response.

• Once we are clear that we have the support of the body
of charity lottery operators we will go to the Gambling
Commission and DCMS to make our case

• Any questions?

29

What should charity CEOs be paid?
Perceptions of acceptable and actual
salaries

Joe Saxton
July 2012

Perceptions of acceptable
salaries

Perceived acceptable salaries for different professions
Chief executive of a large company
(annual turnover over £10m)
1%4% 11% 19% 21% 16%

Bank Chief Executive 3% 8% 19% 21% 18% 10%

Chief executive of a medium sized
company (annual turnover £1m- £10m) 1% 9% 21% 26% 19% 5%

Hospital Chief Executive 2% 9% 22% 26% 19% 5%

GP0% 8% 26% 30% 20% 3%

Member of Parliament 7% 17% 25% 26% 12% 2%

Chief executive of a small company
(annual turnover under £1m)
3% 19% 33% 21% 11% 1%

Charity Chief Executive 8% 26% 28% 18% 9% 1%

Nurse 3% 56% 26% 6% 2%1%

Social Worker 9% 57% 22% 5% 1%
0%

Bus driver 24% 63% 6% 1%
0%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Under £20,000 £20,001 - £40,000 £40,001 - £60,000 £60,001 - £80,000 £80,001 - £100,000 £100, 001 - £120,000 £120,000 - £140,000 Over £140,000 Not sure

“How much do you think each of the following should be paid?”


Mean acceptable salaries for different professions
£100,000
£90,107
£90,000 Mean score- Nov 09 Mean score- Mar 12
£78,183
£80,000 £73,245
£72,113
£69,376
£70,000
£58,025 £58,903
£60,000
£51,826
£50,000
£40,941
£40,000 £36,453

£30,000 £27,350

£20,000

£10,000

£0
Bus driver Social Nurse Charity Chief Member of GP Hospital Chief Bank Chief Chief
Worker Chief executive Parliament Chief executive Executive executive
Executive of a small Executive of a of a large
company medium company
(annual sized (annual
turnover company turnover
under (annual over
£1m) turnover £10m*)
£1m-
£10m)

“How much do you think each of the following should be paid?”
* Turnover not specified in Nov 09


Mean acceptable salaries for chief executives of
different size charities
£80,000

£69,376
£70,000
£62,352
£58,025 £58,903
£60,000

£51,269
£50,000

£40,941
£40,000 £38,414

£30,000 £27,350

£20,000

£10,000

£0
Bus driver Chief executive Nurse Chief executive Chief executive Member of Chief executive GP
of a small of a medium of a small Parliament of a large
charity (annual sized charity company charity (annual
turnover under (annual (annual turnover over
£1m) turnover £1m- turnover under £10m)
£10m) £1m)

“Thinking about chief executives of different types of charities, how much do you think each of the following should be
paid?”

34
Source: Charity Awareness Monitor, Mar 12, nfpSynergy

Perceptions of how much different professions
are actually paid
£140,000

Mean score- Mar 12
£117,524
£120,000 £112,632
£98,932
£100,000 £91,609
£85,787
£81,807
£80,000 £74,674 £75,636

£60,000

£40,000
£29,850 £32,135
£24,452
£20,000

£0
Bus driver Nurse Social Chief Charity GP Member of Chief Hospital Chief Bank Chief
Worker executive Chief Parliament executive Chief executive Executive
of a small Executive of a Executive of a large
company medium company
(annual sized (annual
turnover company turnover
under (annual over £10m)
£1m) turnover
£1m-
£10m)

“How much do you think each of the following are paid on average?”


Gap between perceived actual and acceptable
salaries
£140,000
Actual Acceptable £117,524
£120,000 £112,632
£98,932
£100,000 £91,609 £90,107
£85,787
£81,807
£80,000 £74,674 £75,636 £73,245 £72,113
£78,183
£69,376
£58,025 £58,903
£60,000 £51,826
£40,941
£36,453
£40,000 £32,135
£27,350 £29,850
£24,452
£20,000

£0
Bus driver Nurse Social Chief Charity GP Member of Chief Hospital Chief Bank Chief
Worker executive of Chief Parliament executive of Chief executive of Executive
a small Executive a medium Executive a large
company sized company
(annual company (annual
turnover (annual turnover
under £1m) turnover over £10m)
£1m-
£10m)

“How much do you think each of the following should be paid?” Mean
“How much do you think each of the following are paid on average?” Mean


Ratio between perceived actual and acceptable
salaries
£2
Ratio 1.46 1.46 1.50
1.37
£1 1.29
1.25 1.25
1.18
£1

£1 0.88 0.89
£1 0.73

£1

£0

£0

£0
Nurse Social Bus driver GP Chief Chief Chief Hospital Member of Charity Bank Chief
Worker executive of executive of executive of Chief Parliament Chief Executive
a large a medium a small Executive Executive
company sized company
(annual company (annual
turnover (annual turnover
over £10m) turnover under £1m)
£1m-
£10m)



Gap between perceived actual and acceptable
salaries for charity chief executives
£100,000

£89,603
£90,000
Actual Acceptable
£80,000
£72,698
£70,000
£62,352
£60,000
£54,861
£51,269
£50,000

£40,000
£38,414

£30,000

£20,000

£10,000

£0
Chief executive of a small charity (annual Chief executive of a medium sized charity Chief executive of a large charity (annual
income under £1m) (annual income £1m- £10m) income over £10m)


What does all this mean?

• We are quite a socialist nation at heart!
• We think bus drivers, nurses and social workers are underpaid
• Everyone else is has an actual salary higher than their ideal.
• Charity CEOs are nestled between bank chief executives and
MPs in terms of the ratio of being seen as overpaid
• So although charities actually salaries of CEOs are not as high
as some others, the acceptable salaries are that much lower
• We need to do some communications work for the sector to
show why CEOs are great value for money and worth what
they are paid.

39

Methodology

Dates
23rd March – 2nd April 2012

Sample A nationally representative sample of 1,000
adults, 16+ in Britain

Methodology
Online survey

Fieldwork
Fieldwork carried out for nfpSynergy by Research
Now

40

Basic demographics of respondents
100%

South West and •The socio-economic classification
90% 65+, 19% Wales, 14% system we use consists of six social
AB, 26%
grades which classify the household
80% South East, 14% social status based on the occupation
Female, 52% 55-64, 14%
of the Chief Income Earner (so if a
70% casual worker lives with a parent or
Scotland, 9%
spouse who is a doctor they'll be an A
60% C1, 30% rather than an E);
45-54, 16%
North West, 12%

50% -AB - higher (A) or intermediate (B)
North East,
Yorkshire and managerial, administrative or
40% 35-44, 19% Humberside, professional
13%
-C1 - supervisory or clerical, and
C2, 20%
30%
junior managerial, administrative or
Midlands, 17%
professional
Male, 48% 25-34, 14%
20%
-C2 - skilled manual workers
London, 10%
-DE - semi-skilled and unskilled
DE, 24% workers (D) & state pensioners, casual
10%
16-24, 17%
East of England, or lowest grade workers (E)
10%
0%
Gender Age Social grade Region


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net
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Spitalfields
London E1 7NH

020 7426 8888
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