Change with lottery licence fees means P.E.I. charities will have more cash in hand

The province is changing the way it charges charitable groups thatwant a lottery licence to raise funds.

Currently, charities wanting to hold lotteries as fundraisers have topay twoper centof the retail value of the prize as a fee to the province, if that value exceeds $1,000. Anything below that is charged a flat rate of $5.

But later this month, those fees will be eliminated where prize values are less than $5,000 with a flat rate of $25 for those that exceed that amount.

It's a change that some in the not-for-profit sector have been lobbying for so more of the moneyraised can go directly toprograms and services, says Heather Doran, communications and development manager at Big BrothersBig Sisters of Prince Edward Island.

"This change makes a huge difference for us," said Doran.

"It would be more than what we would pay to make a brand new match between a big brother and a little brother or a big sister and a little sister. And it's a lot for us to be able to have that extra money."

Big Brothers Big Sisters normally runs two lottery events every year: The Bowl for Kids Sake raffle, and the Dream Cottage fundraiser. Doran said the reduction in provincial lottery licence fees will not only support more matches, but will allow her group to supplement other existing programs as well. She said this is increasingly important, as costs for supplies and operational expenses continue to climb.

"It would also be money that could go toward things like materials for in-school mentor boxes," said Doran.

"Or we can use the money to support programs like Launch Your Life, which supports youth who are pursuing careers, post-secondary careers and post-secondary education options as well. So there's a whole host of things that we can use the additional money raised for."

Officials with the Department of Justice and Public Safety expect a $120,000 revenue loss from this fee change, which takes effect on Aug. 21.

There's no change to the fee structure for weekly community fundraisers, such as Chase the Ace groups pay a flat rate of $25 per fundraiser, as long as the value of the prize exceeds $5,000, and complete the paperwork again each time a new draw is planned. No fee is paid when the prize value is less than $5,000, but the paperwork is still required.

For Heather Matheson, managing director of the Prince County Hospital Foundation, the paperwork isn't a problem she's just happy that this fee change will see more money going directly to the work done by the not-for-profit sector.

"We're all doing our best for the cause that we're involved with," Matheson said. "While I still think financial reporting and regulations are important, and that should remain, it's just really encouraging to see that this fee is reduced and allows the funds to be used for the purposes at hand."

She said for the not-for-profit sector, larger scale fundraisers, like lotteries with large prizes, are a cost-effective way to meet fundraising goals and a reduction in the fees associated with this type of fundraising will make them even more valuable to community groups.

"I'm sure that all folks in my position would have been looking at [the fee], wishing it was less," said Matheson.

"Certainly the bigger events, that does factor in, if you're looking at $1,000 versus $25. The bigger the prize you have, likely the more attraction there is to folks getting involved with it, so you can raise more."

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