Lottery rule changes make it easier for Nova Scotia non-profits to raise money

The Nova Scotia government has changed the rules around lotteries, making it easier for non-profit and charitable organizations to raise more money.

An amendment to ticket-lottery regulations means sports clubs, churches and other groups do not need a lottery licence for prizes valued under $4,000, although they will still need a permit. Previously the amount was $500.

"That's fantastic" said Rayanne Rogers, program and special events co-ordinator with the Boys and Girls Club of Cape Breton.

"Not only will it put a little bit more money back into the non-profits and assist youth for fundraising for their teams, it also cuts down on the amount of paperwork that has to be done."

If a prize is more than the $4,000 limit, groups must fill out forms and pay 2.13 per cent of the winnings to the province.

The changes that went into effect on April 10 also mean groups can give away more substantial prizes without worrying about licences. Unlike a simple permit, a licence requires the organization to file a report.

Rogers said her group was very careful when it filled up an Easter basket for a recent fundraiser that the contents did not exceed $500.

Terri Dennis, executive director of the Northside and Harbourview Hospital Foundation, said the changes might encourage other groups to hold fundraisers now that there is less paperwork for prizes under $4,000.

"The time it is going to save, that's the big thing," said Dennis, whose organization raises money for hospital equipment and programs for patients.

Service Nova Scotia Minister Geoff MacLellan said the changes will mean a loss to the province of approximately $35,000 in tax and licensing fees, but it's worth it.

"We've got a focus of $25 million in red-tape reduction. This is the exact thing that contributes to that," said MacLellan. He said it was "non-sensical" for local grassroots organizations to go through a series of hoops to put on a relatively small lottery.