Omaze

Omaze
FormationSeptember 2012 (2012-09)
Founder
  • Ryan Cummins
  • Matthew Pohlson
PurposeCharity Fundraising
HeadquartersCulver City, California, U.S.
Key people
Websiteomaze.com

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]participants are encouraged to make [5][6] was privately ownein Los Angeles, California. The company has raised over $130 million[7] for over 350 charities,[7] including UNICEF,[8] After-School All-Stars,[9] Julia's House,[10] Product Red,[11] and Make-A-Wish Foundation.[12]

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.

Contests

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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.[13]

Sweepstake systems such as Omaze include a "no purchase necessary" clause to avoid being classed as a lottery.[14] In the US, participants could select an "enter for free" option to receive 2,000 entries at no cost.[15] In the United Kingdom, participants may submit a postal entry with no fee.[16]

Omaze released their first sweepstakes in July 2012, with the winner becoming a judge on Cupcake Wars and all entries supported Team Rubicon.[17]

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.[18] The experience launch video was a 2016 Webby Award Honoree.[19]

In January 2023, Omaze paused operations in the United States.[20] This came soon after a large layoff of Omaze employees. On December 9th, 2022, Omaze laid off 103 employees.[21]

Model

[edit]

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 in the United Kingdom

[edit]

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.[22]

In the United Kingdom, Omaze currently gives 17% of total sales to the charity partner, with a guaranteed minimum of £1 million.[23] 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.[16]

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.

References

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  1. ^ a b "Celebrity-backed charity platform launches in the UK — with a £1m house giveaway". Sifted. 12 May 2020. Retrieved 29 January 2021.
  2. ^ a b c "What is Omaze? About Us & How We Help People In Need". Omaze. Retrieved 2019-06-30.
  3. ^ Pohlson, Matt (2020-09-09). "Purpose At Work: How Omaze Reinvented Philanthropy To Unlock Exponential Growth And Impact". Forbes. ISSN 2609-1445. Retrieved 2020-09-09.
  4. ^ Jansen, Monika (August 22, 2011). "Win Once-in-a-Lifetime Experiences that Raise Money for Charity at Omaze". Tech.Co. Retrieved September 6, 2015.
  5. ^ Milzoff, Rebecca (February 14, 2013). "Celebrity Charity Auctions: Six Winners' Stories". Bloomberg BusinessWeek. Retrieved September 6, 2015.
  6. ^ Shontell, Alyson (July 23, 2012). "Omaze Raises $1 Million So Regular People Can Experience Once-In-A-Lifetime Opportunities For $5". Business Insider. Retrieved September 6, 2015.
  7. ^ a b BERNSTEIN, JILL (2020-03-10). "Meet the for-profit business model that's raised over $130 million for charities". Fast Company. ISSN 1085-9241. Retrieved 2020-03-10.
  8. ^ Cummins, Ryan (2015-12-16). "How my organisation is helping Star Wars become a force for change". The Guardian. ISSN 0261-3077. Retrieved 2017-08-23.
  9. ^ "Arnold Schwarzenegger Wants You To Blow Sh*t Up For Charity". Tubefilter. 2015-05-15. Retrieved 2017-08-23.
  10. ^ "Robert Downey Jr raffle raises £1m for Julia's House hospice". BBC News. 2015-04-07. Retrieved 2017-08-23.
  11. ^ "U2 Offer Private Concert, Make Song Title Puns for Charity". Rolling Stone. Retrieved 2017-08-23.
  12. ^ "Stan Lee Tribute Event Announced". Marvel. Retrieved 2017-08-23.
  13. ^ Conway, Jeff (3 December 2020). "Omaze Promotes Optimism This Holiday Season With The Help Of Charlize Theron, Ben Affleck And Matt Damon". Forbes. Retrieved 30 January 2021.[dead link]
  14. ^ Lindsay, Jessica (17 April 2021). "House raffles: Legit way to get on the property ladder or filled with loopholes?". Metro. Retrieved 22 July 2021.
  15. ^ "Official Rules". Omaze. Retrieved 2020-11-15.
  16. ^ a b "Your Frequently Asked Questions, Answered". Omaze UK. Retrieved 22 July 2021.
  17. ^ "Omaze Contest: Be A Backstage Judge On Cupcake Wars!". Omaze Contest. Retrieved 2017-07-28.
  18. ^ Cummins, Ryan (2015-12-16). "How my organisation is helping Star Wars become a force for change". The Guardian. ISSN 0261-3077. Retrieved 2017-07-28.
  19. ^ "2016 | The Webby Awards". webbyawards.com. Retrieved 2017-07-28.
  20. ^ Welch, Andy (4 April 2023). "Too good to be true? What it is really like to win a £3m dream home". The Guardian. Retrieved 30 September 2024.
  21. ^ "Omaze, Inc. - Layoffs/Closings". usa today.
  22. ^ "Omaze UK Limited". Companies House. Retrieved 9 June 2024.
  23. ^ "We're giving more than ever before". Omaze UK. Retrieved 9 June 2024.
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