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Popular Raffle Accused of Giving Too Little to Charities

November 14, 2007 | Read Time: 1 minute

The popular Naperville Rotary Charities’ House of Dreams Charity Raffle, which began in 1992, is now facing criticism in the Chicago area for giving what some observers feel is a notably small proportion of its raffle proceeds to area charities, reports the Chicago Tribune.

The raffle, which is held twice a year, awards grand-prize winners a “dream home” or $1-million cash and is self-described as “one of the largest charitable raffles in the United States.” Participants who do not win the raffle are assured that the $100 spent on their ticket goes to charities, such as the Children’s Memorial Hospital, in Chicago.

Tax records of past raffles indicate, however, that less than $10 from each raffle ticket goes to charities and that the rest is paid out to private companies that operate or publicize the raffle. Organizers say that despite the millions of dollars the raffle is anticipated to raise this year, Children’s Memorial Hospital — promoted as the raffle’s biggest charitable beneficiary — will receive only $100,000.

Don Kaminky, a raffle organizer, explained: “We’re a fund raiser, not a charity. We are a tool to raise money.” He says the raffle brings in money from people who likely would not donate otherwise.

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