Omaze is a name that dominates our television and computer screens, with its aggressive marketing for its Million Pound House Draw. But what is Omaze, is it a charity, and is it a scam? Join us as we take a close look at the business to answer those questions.
What is Omaze?
Based out of America, but a member of the United Kingdom’s Fundraising Regulator, the for-profit company offers contestants the chance to win prizes like a house valued at over £3,000,000 with £100,000 in cash or a Jaguar F-Type Coupé, worth more than £75,000.
Omaze teams up with charities like Unicef and Cancer Research for some of its draws. It’s these contests that are held to the standards of the Fundraising Regulator, with a set amount of funds being directed to the named foundation, and the rest retained by Omaze.
Take its Million Pound House Draw, for example. According to the terms, 80% of the net proceeds are going the British Heart Foundation. This refers to the total revenue made, minus the cost associated with providing, marketing and operating the draw.
By way of illustration, if the net proceeds are £625,000 then the donation to the British Heart Foundation would be £500,000. Omaze has also guaranteed £100,000 to the British Heart Foundation, irrespective of the amount of entries sold.
How does Omaze Work?
It’s a standard raffle model. You can buy as many raffle tickets as you want — the more tickets you have, the higher your chance of winning. And you can enter for free by postal entry. Otherwise pricing starts from £10 for 15 entries, at £0.66 per entry.
Subscriptions are also available, which offer contestants the chance to get more tokens at a lower cost. This will automatically credit your account with new entires each month, which you can then use to enter draws. Cancel anytime, no questions asked.
There are two membership packages available at the time of wring. You can sign up to get 30 entires per month at £10 or 80 entries at £25. One-time, non-subscription bundles are also available: 40 entires or £25; 85 entires for £50; or 320 entires for £150.
Is Omaze a Charity?
Omaze itself is not a charity, and not every prize draw it offers benefits a fundraiser. You’ll be able to tell which ones do, as it’ll say who it’s supporting on the draw itself. You can find the terms including the share the charity will receive on the entry page.
Charities that Omaze has worked with before include Dogs Trust, Teenage Cancer Trust, The Prince’s Trust, Blood Cancer UK, Alzheimer’s Research UK, Cancer Research UK, Great Ormond Street Hospital, and the British Heart Foundation, NSPCC and RSPCA.
Is Omaze a Scam?
Omaze is not a scam. The company has a list of winners on its website, and has received glowing reviews from the press and across social media. Reputable charities are also lending their name to it. We can assume they’ve done due diligence as well.