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Developers Ferrari Raffle goes badly


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Feel free to move mods.

Just wanted to share this hilarious scheme from my local paper.

https://www.edp24.co.uk/business/boss-of-norfolk-barns-justin-henry-raffles-ferrari-to-help-raise-money-for-nhs-1-6644036

I genuinely have never seen anything like it... transparently a terrible Idea

I know folks have been doing it with houses but this is just doomed from the start.

A quick look on CH shows that he has a solvent company developing some barns with x00k in the bank.

posted 13:00 and shut down before the sundown.

Edited by Fromage Frais
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Such a load of nonsense. He just needs to sell his car and he's abusing people's charitable instincts to try to make some cash. Imho.

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23 minutes ago, crazypabs said:

If you follow the link in the report, the raffle has been cancelled and refunds are being made

That was my point - they got less than 900 quid and bottled it. The law should be that the raffle goes ahead with the tickets that are sold. If you create a raffle and your get less than your costs then tough luck. 

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Posted (edited)
15 hours ago, crazypabs said:

If you follow the link in the report, the raffle has been cancelled and refunds are being made

First it got suspended and then cancelled.  The refunds etc are automatic from gofundme .

Looks like it may have breached the go fund me t and c's

According to their website the platform suspends the campaign and then asks you to clarify..... 

The t&c's are quite clear no raffles or prize draws.

In the article they state free to enter and then ask £8 per donation.

It was just never going to fly such a poorly thought out endeavour

Edited by Fromage Frais
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Posted (edited)

Follow up story

https://www.edp24.co.uk/business/justin-henry-who-runs-norfolk-barns-ltd-withdraws-raffle-of-ferrari-for-charity-1-6645631

Comments disabled for some reason.....

"A reserve on the fundraising meant the charity stood to get more than £250,000."

Highly speculative at the time of suspension the campaign reached 900£ with the article in the local paper being live for less than 12 hours.

1257797765_WhatsAppImage2020-05-08at15_11_55.thumb.jpeg.8fa371963615917c7360d85a8025d9bf.jpeg

With a reserve of £458,000 and 28 days left on the counter £442,000 was left to raise for someone to win the car.

  • £16,000+ a day
  • £600 + per hour

So considering that in the few hours since the first bit of publicity the campaign raised only circa 900£ this is pure fantasy.  Certainly not grounded in reality enough to assert that the opportunity cost of ending the endeavour would lose a charity £250,000.

"He told this newspaper: “Due to the negative comments and feedback, I am sad to say that we have decided to stop our fundraiser."

Those evil commentators costing the NHS 250,000.  The story was on the local paper with circa 20 comments on when the campaign was cancelled within hours.

Given that the endeavour achieved £900 in the first hours of publication it seems that national exposure would have been required otherwise the  performance at the time of suspension indicated a total in the region of sub 50,000£

If the objective was to raise near half a million £ then 20 comments on a local news story should not have been a bridge too far.

I would actually say thank goodness it did not get national exposure for their sake.

"He was offering people the chance to enter a draw making an £8 donation with one winner getting the red 458 Ferrari Spider "

= Prize draw 

ergo....

"Promotions on the GoFundMe Platform: You are not permitted to offer any contest, competition, reward, give-away, raffle, sweepstake or similar activity (each, a "Promotion") on or through the GoFundMe Services."

And thats without running the gauntlet of licensable gambling activity regulations.

A best a silly idea with good intentions...

However if intentional or not it looked from the outside like a limited company setup with a retail sic code to run a campaign that used the NHS name to raise money and only pay out once an asset was purchased from one of the companies directors at potentially more than current market value. 

Hypothetically if the scheme failed to miss the target circa 3 times the value of the prize a sub 500 prize would be paid out and then all undefined costs would be compensated to the limited company with only the "profit" paid to the charity.

Hypothetically if the scheme had made 180,000?  Would the company have bought the car and paid out costs and then made a donation... etc etc   Then sell the car at a loss?

Or what if the most logical en scenario 50-100 raised a failure but still a lot of donations.. sub £500 paid out as a prize and then god knows what on fees, expenses and wages before paying out to the charity.

But nope its nasty evil people moaning in the EDP comments section....



 

Edited by Fromage Frais
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16 hours ago, Giraffe said:

That was my point - they got less than 900 quid and bottled it. The law should be that the raffle goes ahead with the tickets that are sold. If you create a raffle and your get less than your costs then tough luck. 

It's unlikely they bottled it.

In the original article they stated it was free to enter... which is a pillar required to make it fly.

Then if you want to enter you then have to pay £8 which on face value looks like a a contravention of the go fund me rules ... unless go fund me give explicit permission.

Once Go fund me flag something they then ask the person running the campaign for further information after pausing.... You then have to explain it within one working day or cancel it and refund.

So looking from the outside the fact that this campaign was paused > then cancelled makes it look more like a compliance issue as if it was due to nasty publicity why not just go right to cancel?

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Posted (edited)

Local paper deleting comments all over the show.

Looks like lottery dressed as free draw.

Website should have had free option same prominance as paid option .

Please find the free option 

Carsforheroes.co.uk 

Free draws allow personal gain.

Easy to play down such things but the aim was to get 450 k plus of donations in name of nhs charity.

Actually reading the rules almost anything of this type is deemed a lottery.

How can you have a real free drawn when you need to make money esp when that money pays for the prize.

From gambling commission.

If you choose to run a free draw with a paid entry route, you must ensure that:
► people can genuinely choose to take part without paying
► the free entry route is no more expensive or no less
convenient than the paid route and charged at its normal rate
► the choice is publicised so that it is likely to come to the
attention of anyone intending to participate
► the system for allocating prizes does not distinguish between either route
► the free entry route is displayed with as much prominence as the paid

 

Edited by Fromage Frais
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  • 415 Brexit, House prices and Summer 2020

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