Seeded Pot vs Base Payout(Guaranteed payout)

This article explains the difference between the seeded pot vs base payout(guaranteed payout) of raffle's prize

Prize with Pot Seed - this is the lowest possible amount a winner will receive. All ticket sales will add to this value.

Below will be the starting point at $2000 for the seeded pot because the winner takes 50% which is the seeded amount and all ticket sales will be added to that seeded amount.

At 100 tickets sold($1000), that amount will just be added to the pot.

The maximum prize with seed would be the pot prize amount PLUS the seed amount. For example, if ticket sales reach $10,000 on a 50/50 raffle, the prize would be $6,000 adding the seed amount. If ticket sales reach $4,000 the prize would only be $5,000 adding the seed amount.

 

Guaranteed Prize or Prize with Base Payout - this is the guaranteed amount that the winner will receive. You are required to pay this amount to the winner even if the tickets do not collect this amount. This does not change the pot starting amount.

Below is the starting point at $0 for base payout amounting to $1000 with a note "Winner will take home a minimum of $1,000"

At 75 tickets sold($750) below is what it would look like and still with a note "Winner will take home a minimum of $1,000"

For example, an organization or a third-party can guarantee a minimum prize amount of $25,000. If ticket sales reach $50,000 on a 50/50 raffle, the prize would be $25,000 and the organization or sponsor(s) would not contribute any funds. If ticket sales reach $40,000 the prize would only be $20,000 creating the need for the organization or sponsor(s) to contribute $5,000 to meet the guaranteed prize pot.

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