Prize draw firm Omaze has introduced a new funding model that will guarantee at least £1m will be donated to charity.
Under the new model the firm, which offers luxury homes through prize draws, guarantees that charities it partners with will receive 17% of total sales.
Irrespective of sales Omaze will guarantee its makes a minimum donation of £1m to the RSPCA, its charity partner for its latest giveaway of a home in Somerset.
The change sees its update its previous model where it gave away 80% of net proceeds from each draw after the firm’s prizes and marketing costs were covered. The new model focuses on total sales.
“While 17% doesn’t sound as good as 80%, it amounts to more for our charity partners. It’s a smaller percentage of a much bigger pie,” said Omaze.
Under the previous model the minimum donation guaranteed to charity was £100,000.
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Over the last three years it has offered 21 homes as prizes, raising £20m for charities.
Its first house draw saw £200,000 raised for Teenage Cancer Trust, with a minimum donation guarantee of £75,000 in April 2020. In the same year its minimum donation was increased to £100,000.
The British Heart Foundation is among other charities to benefit from the prize draw.