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?

3

It is difficult to keep to the £10m annual income ceiling

We would like to be able to run an individual lottery larger than the current £4m ceiling

We find it difficult to avoid infringing the Gambling Commission/ Local Authority regulations

It is difficult to achieve the 20% minimum return to the beneficiary when recruiting from cold prospects

The current regulations for lotteries increase our costs

We find the limit on prize money/value restrictive

The need to account for every ticket distributed (when sending more than £20 worth to cold prospects) and then returned involves extra administration for us

The need to account for every ticket involves extra costs for us

The current regulations for lotteries make it more difficult to generate income from lotteries

Lotteries are more regulated than any other area of our fundraising

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

-27%

-17%

-19%

-14%

-4%

-7%

-10%

-7%

-10%

-5%

-13%

-5%

-3%

-6%

-4%

-1%

-1%

-1%

-2%

0%

-42%

-47%

-34%

-39%

-51%

-53%

-38%

-48%

-38%

-33%

3%

8%

7%

17%

16%

16%

23%

20%

20%

29%

4%

6%

11%

6%

9%

12%

9%

15%

15%

23%

Not sure/Not relevant

Disagree strongly

Agree

Agree strongly

Agree

Agree strongly

“How does lottery regulation and administration affect your charity? How does lottery regulation and administration affect your charity? ” Ranked by Agree strongly/Agree

Attitudes towards lotteries - part 1

Base: 181 participantsSource: Jun 11, nfpSynergy

4











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

-27%

-17%

-19%

-14%

-4%

-7%

-10%

-7%

-10%

-5%

-13%

-5%

-3%

-6%

-4%

-1%

-1%

-1%

-2%

0%

-42%

-47%

-34%

-39%

-51%

-53%

-38%

-48%

-38%

-33%

3%

8%

7%

17%

16%

16%

23%

20%

20%

29%

4%

6%

11%

6%

9%

12%

9%

15%

15%

23%


Disagree strongly

Agree

Agree strongly

Agree

Agree strongly




5











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

-27%

-17%

-19%

-14%

-4%

-7%

-10%

-7%

-10%

-5%

-13%

-5%

-3%

-6%

-4%

-1%

-1%

-1%

-2%

0%

-42%

-47%

-34%

-39%

-51%

-53%

-38%

-48%

-38%

-33%

3%

8%

7%

17%

16%

16%

23%

20%

20%

29%

4%

6%

11%

6%

9%

12%

9%

15%

15%

23%


Disagree strongly

Agree

Agree strongly

Agree

Agree strongly




6











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

-27%

-17%

-19%

-14%

-4%

-7%

-10%

-7%

-10%

-5%

-13%

-5%

-3%

-6%

-4%

-1%

-1%

-1%

-2%

0%

-42%

-47%

-34%

-39%

-51%

-53%

-38%

-48%

-38%

-33%

3%

8%

7%

17%

16%

16%

23%

20%

20%

29%

4%

6%

11%

6%

9%

12%

9%

15%

15%

23%


Disagree strongly

Agree

Agree strongly

Agree

Agree strongly




7

-7%

-15%

-12%

-4%

-6%

-8%

-1%

-2%

-7%

-2%

-1%

-1%

-3%

-1%

-36%

-41%

-46%

-43%

-33%

-40%

5%

22%

24%

29%

28%

35%

38% 8%

-69% 1%

7%

7%

3%

4%

6%

-100%

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

We have found online lotteries very successful

We find lottery ticket buyers tend to give in a variety of otherways as well

We have found that lottery income has held up well duringthe recession

We expect our income from lotteries to increase over thenext two years

We would be interested in exploring being part of a coalitionto run larger lotteries with bigger prizes

Our income from lotteries has increased over the last twoyears

We find that lotteries appeal to a certain kind of donor

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

“Please state to what degree you agree/disagree with the statements below ” Ranked by Agree strongly/Agree



8

-7%

-15%

-12%

-4%

-6%

-8%

-1%

-2%

-7%

-2%

-1%

-1%

-3%

-1%

-36%

-41%

-46%

-43%

-33%

-40%

5%

22%

24%

29%

28%

35%

38% 8%

-69% 1%

7%

7%

3%

4%

6%

-100%

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












9

-7%

-15%

-12%

-4%

-6%

-8%

-1%

-2%

-7%

-2%

-1%

-1%

-3%

-1%

-36%

-41%

-46%

-43%

-33%

-40%

5%

22%

24%

29%

28%

35%

38% 8%

-69% 1%

7%

7%

3%

4%

6%

-100%

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












10

How much annual income do you get from lottery ticket sales?

54%

4%

9%11%

4%6%

12%

£0-50k £51-100k £101-250k £251-1000k £1001-4000k £4001k + Don't know


How much money did participants raise from lotteries

11

How much annual income do you get from donations with lottery ticket sales?

62%

6% 7%3% 3% 2%

17%

£0-25k £26-50k £51-100k £101-250k £251-500k £501k + Don't know


How much donated income did respondents raise from lotteries

12

Approximately how many individuals buy lottery tickets from your organisation every year?

69%

15%

6%4%

1%5%

0-10k 10-25k 26-50k 51-100k 101-200k 201k +


How many people took part in respondents’ lotteries

13

Please indicate how many lotteries you run each year?

57%

20%

3% 4%1%

15%

1 to 2 3 to 5 6 to 10 11 to 15 16 to 25 26+


How many lotteries did respondents run a year

What do the general public think about

lotteries?

15

Key statistics

12%played Health Lottery in last

month54%played National Lottery in last

month

57%think lotteries run

by charities should be able to compete with the National Lottery and the Health

Lottery

61%Opposed to laws and regulations which stop any other lotteries from raising as much money as

the National Lottery

46%Opposed to

capping the size of charity lotteries

68%Opposed to capping the

number of tickets charity lotteries

can sell21%

played a charity lottery in last

month

16

Demographics of lottery players

54%57%

51% 51% 49%

58% 58%

31%

52% 53%

60%

70%

60%

21% 20%23%

18%

23% 24%20%

18% 18%

23%21%

25%23%

12%10%

13%

6%

11% 12%

18%

10%13%

20%

11%11%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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

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

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

“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

17

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


57%65%

50%56%

61%56% 55% 56%

50%

60% 58% 56% 60% 60%

49%

16%

17%

15%

20% 14%19%

13%16% 24%

14% 16% 16% 12% 15%

19%

27%18%

35%

24% 26% 25%33% 28% 26% 26% 26% 29% 28% 25%

31%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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

Nondonor

Not sure

No

Yes

18

“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?”

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


12% 15%10% 11% 14% 12% 12%

7%15% 12% 13% 16%

11% 12% 11%

61%64%

58%64% 56% 63% 62%

60%

60%59%

63% 61%64% 61% 61%

27%21%

32%25%

30%25% 26%

33%26%

29% 23% 23% 25% 26% 28%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Nondonor

Not sure

No

Yes

19

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

Balance of opinion against charity lottery prizes being capped


34% 34% 33%29%

33%28%

44%

22% 25%32% 32%

40%48%

36%

26%

46% 49%43% 50%

46%50%

36%

51% 48%

49% 46%

44%

38%

45%

50%

21% 17%24% 20% 21% 22% 20%

28% 27%19% 21%

16% 14%19%

24%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Nondonor

Not sure

No

Yes

20

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

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


12% 13% 12% 12% 13% 12% 12% 9% 12% 11% 11% 14% 16% 14%8%

68%72%

65% 68% 69% 71%66% 72% 63%

71% 67%68% 67% 68%

70%

19%16%

23% 20% 19% 18%22% 19%

25%18% 22% 18% 16% 18% 23%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Nondonor

Not sure

No

Yes

What changes are we suggesting to lottery regulation?

22

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

23

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

24

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

25

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

26

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

27

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

28

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

29

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?

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

Joe Saxton

July 2012

Perceptions of acceptable salaries

32

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

Perceived acceptable salaries for different professions


24%

9%

3%

8%

3%

7%

0%

2%

1%

3%

1%

63%

57%

56%

26%

19%

17%

8%

9%

9%

8%

4%

6%

22%

26%

28%

33%

25%

26%

22%

21%

19%

11%

1%

5%

6%

18%

21%

26%

30%

26%

26%

21%

2%

11%

12%

20%

19%

19%

18%

21%

0%

0%

1%

1%

1%

2%

3%

5%

5%

10%

16%19%

0%

9%

1%

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

Bus driver

Social Worker

Nurse

Charity Chief Executive

Chief executive of a small company(annual turnover under £1m)

Member of Parliament

GP

Hospital Chief Executive

Chief executive of a medium sizedcompany (annual turnover £1m- £10m)

Bank Chief Executive

Chief executive of a large company(annual turnover over £10m)

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

33

Mean acceptable salaries for different professions

£27,350

£36,453£40,941

£51,826£58,025 £58,903

£69,376 £72,113 £73,245£78,183

£90,107

£0

£10,000

£20,000

£30,000

£40,000

£50,000

£60,000

£70,000

£80,000

£90,000

£100,000

Bus driver SocialWorker

Nurse CharityChief

Executive

Chiefexecutiveof a smallcompany(annualturnoverunder£1m)

Member ofParliament

GP HospitalChief

Executive

Chiefexecutive

of amedium

sizedcompany(annualturnover

£1m-£10m)

Bank ChiefExecutive

Chiefexecutiveof a largecompany(annualturnover

over£10m*)

Mean score- Nov 09 Mean score- Mar 12


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

34

Mean acceptable salaries for chief executives of different size charities

£27,350

£38,414£40,941

£51,269

£58,025 £58,903£62,352

£69,376

£0

£10,000

£20,000

£30,000

£40,000

£50,000

£60,000

£70,000

£80,000

Bus driver Chief executiveof a small

charity (annualturnover under

£1m)

Nurse Chief executiveof a mediumsized charity

(annualturnover £1m-

£10m)

Chief executiveof a smallcompany(annual

turnover under£1m)

Member ofParliament

Chief executiveof a large

charity (annualturnover over

£10m)

GP


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

35

Perceptions of how much different professions are actually paid

£29,850 £32,135

£74,674 £75,636£81,807 £85,787

£91,609£98,932

£112,632

£24,452

£117,524

£0

£20,000

£40,000

£60,000

£80,000

£100,000

£120,000

£140,000

Bus driver Nurse SocialWorker

Chiefexecutiveof a smallcompany(annualturnoverunder£1m)

CharityChief

Executive

GP Member ofParliament

Chiefexecutive

of amedium

sizedcompany(annualturnover

£1m-£10m)

HospitalChief

Executive

Chiefexecutiveof a largecompany(annualturnover

over £10m)

Bank ChiefExecutive

Mean score- Mar 12


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

36

Gap between perceived actual and acceptable salaries

Bus driver

Nurse Social Worker

Chief ex-ecutive of

a small company (annual turnover

under £1m)

Charity Chief

Execu-tive

GP Member of Par-liament

Chief ex-ecutive of

a medium

sized company (annual turnover

£1m- £10m)

Hospital Chief

Execu-tive

Chief ex-ecutive of

a large company (annual turnover

over £10m)

Bank Chief

Execu-tive

£0

£20,000

£40,000

£60,000

£80,000

£100,000

£120,000

£140,000

£24,452£29,850 £32,135

£74,674 £75,636 £81,807 £85,787£91,609

£98,932

£112,632£117,524

£27,350

£40,941 £36,453

£58,025 £51,826

£69,376£58,903

£73,245 £72,113

£90,107

£78,183

Actual Acceptable


“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

37

Ratio between perceived actual and acceptable salaries

Nurse Social Worker

Bus driver

GP Chief ex-ecutive of

a large company (annual turnover

over £10m)

Chief ex-ecutive of

a medium

sized company (annual turnover

£1m- £10m)

Chief ex-ecutive of

a small company (annual turnover

under £1m)

Hospital Chief

Execu-tive

Member of Par-liament

Charity Chief

Execu-tive

Bank Chief

Execu-tive

£0

£1

£2

0.730.88 0.89

1.181.25 1.25 1.29

1.371.46 1.46 1.50

Ratio



38

Gap between perceived actual and acceptable salaries for charity chief executives

£54,861

£72,698

£89,603

£38,414

£51,269

£62,352

£0

£10,000

£20,000

£30,000

£40,000

£50,000

£60,000

£70,000

£80,000

£90,000

£100,000

Chief executive of a small charity (annualincome under £1m)

Chief executive of a medium sized charity(annual income £1m- £10m)

Chief executive of a large charity (annualincome over £10m)

Actual Acceptable



39

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.

40

Methodology

23rd March – 2nd April 2012

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

Online survey

Dates

Sample

Methodology

Fieldwork Fieldwork carried out for nfpSynergy by Research Now

41

Basic demographics of respondents

•The socio-economic classification system we use consists of six social grades which classify the household social status based on the occupation of the Chief Income Earner (so if a casual worker lives with a parent or spouse who is a doctor they'll be an A rather than an E);

-AB - higher (A) or intermediate (B) managerial, administrative or professional-C1 - supervisory or clerical, and junior managerial, administrative or professional-C2 - skilled manual workers-DE - semi-skilled and unskilled workers (D) & state pensioners, casual or lowest grade workers (E)

East of England, 10%

Male, 48%

Female, 52%

16-24, 17%

25-34, 14%

35-44, 19%

45-54, 16%

55-64, 14%

65+, 19%

DE, 24%

C2, 20%

C1, 30%

AB, 26%

London, 10%

Midlands, 17%

North East, Yorkshire and Humberside,

13%

North West, 12%

Scotland, 9%

South East, 14%

South West and Wales, 14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Gender Age Social grade Region


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020 7426 8888 [email protected]/nfpsynergy www.linkedin.com/company/nfpsynergy

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

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