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Formation | September 2012 |
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Founder |
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Purpose | Charity Fundraising |
Headquarters | Altrincham, England |
Key people |
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Website | omaze |
Omaze is a for-profit fundraising company that partners with charities in fundraising events. To enter the draw for the prizes, financial contributions were encouraged, with 15% to 60% of the money going to the partner charity. [1] [2] [3]
The company was founded by Charlie Cummins and Matthew Pohlson in 2012 [4] in Los Angeles, California. The company has raised over $130 million [5] for over 350 charities, [5] including UNICEF, [6] After-School All-Stars, [7] Julia's House, [8] Product Red, [9] and Make-A-Wish Foundation. [10]
While initially founded in the United States, the company ceased to operate in the country as of 2023 due to regulatory issues, though it remains active in the United Kingdom.
Omaze offer sweepstakes, often accompanied by celebrity endorsements. Entrants are encouraged to contribute financially to the cause, with the amount given determining the number of sweepstake entries that the person receives. [11]
Sweepstake systems such as Omaze include a "no purchase necessary" clause to avoid being classed as a lottery. [12] In the US, participants could select an "enter for free" option to receive 2,000 entries at no cost. [13] In the United Kingdom, participants may submit a postal entry with no fee. [14]
Omaze released their first sweepstakes in July 2012, with the winner becoming a judge on Cupcake Wars and all entries supported Team Rubicon. [15]
In December 2015, Omaze partnered with Star Wars where people donated $10 to be entered to win the opportunity to visit the closed set of Star Wars: The Force Awakens . The experience raised more than $4.26 million to benefit UNICEF. [16] The experience launch video was a 2016 Webby Award Honoree. [17]
In January 2023, Omaze paused operations in the United States. [18] This came soon after a large layoff of Omaze employees. On December 9th, 2022, Omaze laid off 103 employees. [19]
Omaze started as a privately owned, for-profit company that had two models to raise funds for charities. Sweepstake entries for a celebrity experience (set visit, dinner date, tickets to a premiere, etc.) see 60% of the money donated to charity, 25% towards fees and Omaze's costs for advertising and creating content for the event, and 15% to Omaze as profit. [2]
For prize-based experiences (like a car, vacation, or tuition), 15% went to the charity, 70% to sourcing and shipping the prize, covering the winner's taxes, processing credit card fees, and Omaze's costs in marketing and creating content for the experience, and 15% to Omaze in profit. [2]
Omaze draws in the United Kingdom are run by Omaze UK Limited, which, according to their financial statements, is a wholly owned subsidiary of Omaze Inc. [20]
In the United Kingdom, Omaze currently gives 17% of total sales to the charity partner, with a guaranteed minimum of £1 million. [21] Prior to the Somerset House draw in November 2023, Omaze UK gave 80% of the net profit from a sweepstake to the charity, after deducting the cost of the prize and marketing, and took 20% as its profit. [14]
The company launched its first campaign in the United Kingdom in 2020. [1] Each account on Omaze UK is limited to £500 of entries per calendar month.
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