Using an online lottery for fundraising

Many charities find it increasingly difficult to raise donations and aim to attract a younger audience. But how and where do you connect with them? And how do you reach younger generations? The answer is simple: online! We see digital lotteries as the new fundraising channel that also attracts a younger demographic.

Want to reach a younger audience? Don’t think in traditional solutions.
While many charities still primarily target the 60+ age group, younger generations are also increasingly willing to contribute to a better world. They are idealistic, socially and environmentally conscious, and therefore an interesting audience for charities. However, to reach this demographic, it is essential to move away from traditional donation methods.

As early as 2017, Mediaxplain* conducted research on donation behavior by age. The results confirmed that young people prefer to be approached and involved in a different way when it comes to supporting charities and fundraising:

Key findings from the study:

• Young people (18-34 years) are less receptive to face-to-face approaches such as street fundraising. They prefer not to be contacted via phone or in person.

• They don’t like to be tied down to recurring donations—only 20% donate via a fixed direct debit, compared to 40% of older donors.

• They rarely carry cash.

• They are most likely to donate when it is made easy for them, such as via iDEAL or SMS payments.

The Giving in the Netherlands biannual study also confirms that donor loyalty is declining. The percentage of Dutch people who donate a fixed amount to charities each year has been decreasing for years, while the number of one-time donors is increasing.

In an interview with de Volkskrant, Margreet Plug, director of Goede Doelen Nederland, stated:

"For our members, it is becoming increasingly difficult to bind new donors for an extended period. Especially younger generations want to be engaged and connected to social causes in a different way. Support for charities is becoming more fleeting, with one-time donations, targeted contributions to specific projects, or more active involvement through sports fundraising or crowdfunding."

Lotteries for the new generation

So what does fundraising look like in 2024? Back in 2021, we saw digital fundraising campaigns and Tikkies (payment requests) for charities becoming the new normal. Now, lotteries are increasingly going fully digital as well.

A modern website that is easy to share via social media and WhatsApp replaces the traditional, and often inconvenient, door-to-door ticket sales. Additionally, next-gen marketers can run digital ad campaigns to transform the outdated image of lotteries into something fresh and exciting. A social lottery helps you reach and engage younger audiences in a way that feels natural to them.

With a social lottery:

• You don’t need to cold-call or stop people in the street—one WhatsApp message is enough.

• There are no long-term subscriptions—one-time participation is possible.

• Payments are simple via iDEAL, with no cash involved.

Social media as a promotional tool

Since tickets can be purchased instantly online, you can drive traffic from channels like social media, email, and WhatsApp. Some of Lotify’s more forward-thinking charity clients have already started running paid social media campaigns, and the results speak for themselves. Many charities still have a lot to gain in this area to better reach and engage younger audiences.

Another important insight: younger generations are highly influenced by peer pressure and social validation. They don’t want to be left out if their friends are participating in something meaningful.

Do you remember the Ice Bucket Challenge? It went viral worldwide, with millions of people pouring ice water over themselves to support ALS research. You can make your lottery 2024-proof by encouraging social sharing—offer participants a shareable badge, GIF, or animation to post on Instagram Stories after purchasing their ticket.

Expanding your sponsorship network

A lottery is only as successful as its prize package. Make sure to consider different target groups when selecting prizes. Offering trendy prizes can naturally attract younger participants.

• Approach sponsors to donate prizes and offer them visibility within your lottery. This boosts their brand reputation, as many companies want to showcase their goodwill.

  
  

• Transparency matters—let ticket buyers know that prizes are sponsored, meaning they don’t come out of the charity’s budget. This maximizes impact and trust.

What about cannibalization?

One of the goals of a lottery is to attract new audiences. You might worry about cannibalizing existing fundraising efforts, but in our experience, the overlap is minimal—only around 10% of participants are existing donors.

Additionally, a lottery serves as a low-barrier way to engage inactive (sleeping) donors who might not have donated otherwise.

Fundraising with social lotteries

At Lotify, our goal is to create social impact on both large and small scales. We combine legal expertise in lotteries with cutting-edge technology to offer a fully managed online lottery platform.

With Lotify, you can:
✔ Customize your own branded lottery website
✔ Manage your prize package
✔ Ensure fair winner selection
✔ Stay compliant with lottery regulations (licenses, privacy policies, etc.)

Everything is 100% digital—tickets are issued via email, and lotteries are easily shared via WhatsApp, QR codes, social media, and newsletters.

We always strive for the highest possible donation share

The total cost of running a lottery—including licenses, legal fees, prizes, marketing, and the Lotify service fee—must not exceed 60% of the revenue, ensuring that at least 40% goes to charity. However, based on experience, the actual donation share often reaches 80%!

• This depends on several factors:

• Total revenue, which is influenced by promotion, ticket price, and campaign strategy.

• Prize sponsorship—a great main prize can increase ticket sales.

• Notary involvement—some lotteries choose to certify results with a notary.

• Lotify service package—costs depend on duration, customization, and additional features.

We provide custom quotes tailored to your needs.

Want to learn more? Get in touch!