AIBU to be frustrated about a charity and my donations

[TheHodgeoftheHedge]

Sorry if this is a bit convoluted and long...
I support a local charity in various ways both financially and time wise. It's something that I feel very strongly about and have given a huge amount in time and money to over the years.
One of the ways I help financially on a monthly basis is paying into their mini lottery. I pay about £50 a month (as so other people) and there is then meant to be a monthly draw where the top 3 numbers get a small financial prize. In the past this has always been legit and even had a gambling license from the local council when it was first set up.
However, for the past 6 months, none of this has happened. No draw has taken place, no prizes awarded. I nudged the chair about this a month or so ago and he said he didn't know about it and would look into it asap but I've heard nothing more.
I guess my AIBU is whether I'm overreacting to now be getting a bit pissed off about this and if so, what should I do now?
Money is not exactly flush for me at the moment so I think it's affecting my judgment, plus this charity is dear to my heart and I worry that they are putting their other good work at risk by not doing what they should be doing with our money.

With respect, I'd suggest that if you're not flush for cash at the moment, you might want to rethink the 50GBP monthly donation. The rest is a red herring. I wouldn't be too fond of a charity using donated money to fund monthly prizes, anyway. That's a lot of donated money accumulating in the drain.

If you are paying money each month, which is supposed to go into a lottery, and this is not happening, surely this is fraud? You could contact the Charities Commission, and without naming the charity, ask for their advice.

YANBU to be pissed off about this, and I would contact the chair again, to ask for an update on the situation, explaining that you are worried that, if the money is not being used for the designated purpose, this could have a serious impact on the charity, and that, if this is not properly resolved, you will have to take matters further - with the Charities Commission, to start with.

I agree you may be right. I guess I had justified it as every now and then I might get a little prize but things are tight right now!

Re the concept, it's a pretty frequent and effective way of raising money on a monthly basis. Not that dissimilar to a raffle in concept but works well as the charity has a nice flow of direct debits coming in on a monthly basis. The charity in question easily makes several hundred pounds from this every month and it only costs them £100 in payouts. Hope that makes sense.

That's exactly my thinking @SDTGisAnEvilWolefGenius! If you're paying something for a specific purpose and return, if they're not doing that it's fraud, right?!

If they're collecting money and not using it as stated then that's fraud and they could be in serious trouble. I would flag this up to the chair asap and state it in no uncertain terms.

Cancel your DD straight away.

I wouldn't be too fond of a charity using donated money to fund monthly prizes, anyway. That's a lot of donated money accumulating in the drain.

Not necessarily. If done properly, the hope of a prize is a great incentive for people to donate.

So giving away a small money prize is a good investment and money spinner.

However, this charity is fragile not at worst and incompetent at best, and I would stop getting them my hard earned, limited money.

Fraudulent not 'fragile not'

I wouldn't be too fond of a charity using donated money to fund monthly prizes, anyway. That's a lot of donated money accumulating in the drain.

This is a typical fundraising tactic - no different to a lottery. People are more likely to donate regularly and consistently if they have a chance of getting something back from it. It would be lovely if everyone gave for the sake of giving but charities have to accept that sometimes the only way to raise funds is to spend money.

I am on the board of a local amateur football club and we have a "100 club" fundraiser - everyone "buys" a number from 1-100 for £10 a month and every month there is a draw 1st gets £200, 2nd £100, 3rd £50 ... so the club gets a guaranteed £1000 a month, we pay out £350 but that's £650 extra funding every month we wouldn't otherwise get. Ours actually expanded to be a "150 club" as it was so popular, and people don't mind the £10 a month outlay because they have a chance at winning something, and they know that if they don't win, their money has gone towards keeping the club running.

OP this is a very serious thing - and a breach of the laws around fundraising lotteries. You need to take it up with the chairman as it doesn't appear that he is taking it as a serious issue. I know that in my club there is usually a social evening once a month where the 150 club is drawn, and the draw is videoed and posted on the club's Facebook page so that anyone not at the social can see the result and it is recorded publically. In the summer months (in the off-season) when socials aren't so regular, it is the chairman and vicechairman's responsibility to ensure the draw is still carried out and posted on the club's page.

Do they advertise the donations as being for this purpose, or was it just something nice they started doing with your donations?

It’s not necessarily fraud, but I would withdraw my donation straight away- I wonder why others haven’t?

melj is spot on with this OP this is a very serious thing - and a breach of the laws around fundraising lotteries. You need to take it up with the chairman as it doesn't appear that he is taking it as a serious issue The chairman and other trustees of this charity could be in serious shit with this. I'm astonished that a chair of a legitimate charity can be so blase about this as the buck can potentially stop with him.

Sounds like fraud, whether 'intentional' or not. If they no longer run the lottery then they should have told the donors upon making that decision. They have not, so have surely broken the terms of the agreement?

Stop the £50 per month Direct Debit and stop attending the meetings etc. Pen written notice of your suspended donation and your volunteering to the chairman stating your concerns and a summary of the money that you've paid to date that you believe did not go into the bona fide monthly draw process. State in writing evidence that you have to support that the draws never happened with the dates.
You could suggest an opportunity for them to make amends by means of a 'mega draw' and reinstatement of the ongoing draw?

@ Sprinklesinmyelbow

Do they advertise the donations as being for this purpose, or was it just something nice they started doing with your donations?
Yes. It's a specific "club" you join with that exact purpose stated.

Thanks everyone. Glad I'm not blowing this out of proportion. As I said, I care about this organisation hugely but am very upset about how they are behaving in this respect. Thanks for all your input n

@Tinkobell. That's a very good suggestion. Thank you.

Sounds like mismanagement. Contact the treasurer, cancel your direct debit until this is resolved (if its resolved).