The sector lobbied hard from the very beginning to try to ensure that National Lottery funding is additional funding and is not used as a substitute for government funding. It has also lobbied for it to be distributed by an independent body free from government control. The Government has also come under attack for threatening to divert £425 million of the £1.1 billion earmarked for voluntary and community organisations to meet the increased costs of the 2012 Olympic Games. However, sector lobbying has forced Culture Secretary, Tessa Jowell, to promise that local groups will not lose out.

Funding is being diverted from some lottery distributors and there are fears that this will jeopardise the legacy of the games. NCVO is concerned that arts, sports and heritage charities, voluntary organisations and community groups are being unfairly penalised due to the increased costs of the Games.

Created by Parliament in 1994, the National Lottery is the responsibility of the Department of Culture, Media and Sport. It is run under license by Camelot, a private sector consortium, including Cadbury Schweppes, ICL, De La Rue and Racal.

Of the pound for a National Lottery ticket 50p goes to prizes, 4.5p goes in operating costs, 0.5p goes to Camelot as profits, 5p goes to the retailer of the ticket, 12p goes to the Government in tax, leaving 28p which goes to the ‘Good Causes’.

Before thinking about applying for Lottery funding, you should consult with your trustees and members as some voluntary and community organisations – particularly faith-based groups – do not want to use funding that is generated through gambling. Many feel that people in poorer communities are spending money they can ill afford in the hope that ‘it could be them’, and that this form of state sponsored gambling is unethical. The Lottery is sometimes referred to by its critics as a ‘tax on the poor’, and many people who are active in communities feel uncomfortable using money raised in this way.