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Camelot predicts another £1.2bn for good causes after contract extension

Camelot says it will raise an extra £1.2bn for good causes by 2023 after it was awarded a four-year extension to its contract to operate the National Lottery. The National Lottery Commission has agreed to extend the company’s licence, which was due to expire in 2019, by another four years. As part of the agreement, the company said it would set up 8,000 new outlets in areas where it had identified "untapped demand" for lottery tickets.

It said the new outlets would raise an extra £1.2bn for good causes, which include arts, sports, culture and heritage groups as well as the Big Lottery Fund. The BLF receives 40 per cent of the total good causes funding, so would be in line for £480m of the extra funds. It currently gives 90 per cent of its funding to voluntary organisations, which would equate to £432m of the new money for the sector. The additional funds for the BLF would have been £600m if the BLF’s share of the lottery pie not been reduced from 50 per cent to 40 per cent last year.

A statement from Camelot said that £750m of the £1.2bn would be raised between 2012 and 2019, and the rest would be raised by 2023. The statement said that in the period to from January 2009 to March 2012 about 28 per cent of total National Lottery revenue went to good causes. A Camelot spokeswoman said: "We carried out some very sophisticated research with some experts, which has identified some areas of untapped demand."

She said Camelot’s bid for an extension of its licence to run the lottery was unopposed, because there was a clause in its contract with the NLC under which its existing agreement could be extended for a further five years to accommodate a "significant unanticipated investment opportunity."Click here to find out more!

Sir Stuart Etherington, chief executive of the National Council for Voluntary Organisations, said: "We recognise that money distributed to good causes from lotteries represents a major contribution to the voluntary sector, so this is a welcome step forward.

"However, the best way for people to support charities is to donate money directly to them."

This article was taken from www.thirdsector.co.ukhttp://www.thirdsector.co.uk/Fundraising/article/1120627