Omaze draws attention with high-value prize draws—think multi-million-pound houses and luxury holidays—paired with fundraising for good causes. Many people ask what actually happens to the money they spend on entries and how the platform balances prizes, costs and donations.
This article explains how Omaze operates, where its income comes from, how much goes to charities, and the main criticisms it faces. Read on to understand the mechanics behind the draws and what to look for in a campaign.
How Does Omaze Operate?
Omaze runs online prize draws that pair a paid entry with a pledge to a named charity. Rather than being a charity itself, Omaze runs the campaign, markets the prize and manages the draw, while the nominated charity receives funds in line with the campaign’s published terms. Free entry options sometimes exist, but most participants choose paid entries to increase their chances.
Campaigns are organised under the legal framework that applies to society lotteries and similar fundraising draws in the UK, so they follow specific regulatory and reporting requirements. Each draw includes clear terms setting out the prize, the charity involved, and how contributions will be allocated, which helps participants see the promised minimum donation and other details before entering.
All activity is handled online, from entering to winner notification and donation transfers. Next, we’ll look at the different ways the organisation generates income to cover those services and the prizes themselves.
What Are Omaze's Main Revenue Sources?
Omaze funds its operations through several income streams that together pay for prizes, marketing and the platform’s overheads while enabling donations to charities. These sources shape how each campaign is structured and what proportion of receipts can be passed to partners. The specific mix of income and costs varies by campaign and is set out in each campaign’s terms, so the allocation of funds is transparent to participants.
Entry Fees & Ticket Sales
The biggest source of income is paid entries. Each paid entry is split according to the campaign’s terms: a stated amount or percentage goes to the nominated charity after the costs of the prize and running the draw have been accounted for. Campaign costs typically include prize procurement, marketing, technology and administration, and these are deducted before the charity share is calculated.
Campaign pages publish the exact figures or guarantees for how much will be donated, so participants can see the minimum contribution that the charity will receive. Those published figures are the best source of information about the financial split for any particular draw, because different campaigns may use different models and guarantees.
Sponsorships & Partnerships
Brands and commercial partners sometimes supply prizes, services or promotional support. These arrangements reduce direct costs for the campaign and can make higher-value prizes viable without raising the cost of entry for participants.
Sponsorship can take different forms, from product donations to co-funded marketing, and helps expand what a single draw can offer. By lowering out-of-pocket expenses, partnerships can increase the proportion of funds available for donation while still allowing for substantial prizes and wide promotional reach.
Merchandise & Upsells
Occasionally there are optional extras, such as branded items or add-on experiences related to a campaign. These are non-essential purchases that give participants another way to contribute while generating modest additional revenue for the campaign and covering operational expenses.
These optional purchases are never required to enter a draw and do not affect the odds of winning unless the campaign terms explicitly state otherwise. Information about any extras and how revenues from them are used is included on the campaign pages.
Having covered how Omaze raises money, the next section explains how those receipts are divided and what charities actually receive.
How Much Goes to Charity?
Each campaign lists how much will be donated to the nominated charity, and the total varies from draw to draw. Several factors influence the final sum: the declared prize value, the cost to run the campaign, marketing spend and any minimum donation guarantees set out in the terms.
Campaigns commonly state a guaranteed minimum donation that will be paid irrespective of entry totals, which provides a baseline for charities. Above that minimum, the total donation depends on the number of paid entries and the specific financial model for the draw.
Transparency in these figures is central to understanding each campaign’s impact, and campaign pages show the commitments and any applicable conditions.
Omaze's Donation Model Explained
For paid entries, the campaign terms specify either a fixed donation per entry or a percentage split after prize and campaign costs. The guarantee is typically framed so that the charity will receive at least a stated amount, even if entries fall short. That ensures charities receive something definite from the campaign while leaving room for larger donations if participation is high.
Payments to charities follow a regulated process, with transfers and reporting completed according to legal requirements and the schedule set out in each campaign’s terms.
Charity Selection & Distribution
Charities are chosen as named partners for individual campaigns and must be registered and able to receive the donated funds. Partners work with the campaign team to agree terms, including the minimum donation and how funds will be used or publicised. Once a campaign closes and the accounting is complete, funds are distributed in line with those agreements and the schedule published with the campaign details.
Understanding the donation model and how partners are selected leads naturally to questions about the share Omaze retains, which we cover next.
What Percentage Does Omaze Keep?
Omaze publishes the financial breakdown for each campaign so participants can see how receipts are allocated. The retained share covers the prize itself, marketing, platform costs and administration. Campaign terms will state the guaranteed donation and any percentage or fixed amount that goes to the charity, leaving the remainder to cover costs and support future campaigns.
Because each draw varies in prize value and expense, there is no single fixed percentage that applies to every campaign. Some draws show larger operational shares due to high prize costs or extensive marketing, while others have stronger guaranteed donations. Campaign pages and terms set out the exact split for each draw so the allocation is clear.
Having set out the split of funds, it is worth addressing the common criticisms and how Omaze responds to them.
Transparency & Criticisms
Prize-led fundraising attracts scrutiny over how much of participants’ money reaches charities versus how much is used for costs and operations. Critics point to campaigns where a substantial portion of income covers prizes, marketing and platform expenses, and call for clearer, more prominent disclosures so prospective participants can make informed decisions.
Omaze responds by publishing campaign-specific terms that include minimum donation guarantees and the financial breakdown. Regulatory oversight requires accurate reporting and clear presentation of those figures. Still, scrutiny continues because public expectations about fundraising can differ from the realities of running large, prize-driven campaigns.
The discussion about transparency and cost allocation connects directly to whether this model is sustainable and effective for charities, which is considered in the next section.
Is Omaze a Sustainable Fundraising Model?
Omaze’s model can generate substantial sums for charities by attracting people with high-value prizes and wide-reaching marketing. For some charities, a single campaign can raise funds they might not have accessed through conventional appeals, widening their donor base and public exposure.
Sustainability depends on several factors: continued public interest in prize-driven fundraising, strict adherence to regulatory standards, and a balance between operational costs and the funds passed to charities. Minimum donation guarantees help provide certainty for partner organisations, but long-term viability also requires transparent communication so donors understand how their contributions are used.
Ultimately, the model can be effective when campaigns are run transparently and costs are managed responsibly. For charities and participants alike, the key is reading the campaign terms to see the guaranteed donation and any conditions before taking part.
If you’re considering entering a prize draw, check the campaign page for the published donation guarantee and financial breakdown so you know how the funds will be allocated and what the nominated charity will receive.
**The information provided in this blog is intended for educational purposes and should not be construed as betting advice or a guarantee of success. Always gamble responsibly.