NZ Lottery Grants: How the Lotteries Commission Distributes Proceeds to Communities

The New Zealand Lotteries Commission distributes a significant portion of its proceeds — after prizes and operating costs — to community purposes through a network of grant-making committees. Lottery proceeds have supported New Zealand communities for decades, funding arts, sports, heritage, environment, and community organisations across the country.

How Lotteries grants work in New Zealand

The Gambling Act 2003 establishes the framework for distributing lottery proceeds. The Department of Internal Affairs (DIA) administers the Lotteries Grants system on behalf of the Lotteries Commission.

Grant distribution committees: Lottery proceeds are distributed through a series of purpose-specific national committees and community committees. National committees include:

  • Lottery Individuals with Disabilities — for organisations supporting people with disabilities
  • Lottery Environment and Heritage — for environmental and heritage projects
  • Lottery Marae Facilities — for marae development and facilities
  • Lottery Māori — for Māori community purposes
  • Lottery Outdoor Safety — for outdoor safety education and rescue
  • Lottery Significant Projects Fund — for significant community capital projects
  • Lottery Sport and Recreation — for sports and recreation

Community committees: In addition to national committees, there are approximately 24 community committees across New Zealand — one for each main urban area and region — that distribute lottery proceeds for general community purposes in their area.

The application and assessment process

Applications through DIA. Most Lotteries grant applications are submitted through the DIA's online application system. The DIA provides guidance documents, application forms, and assessment information.

Assessment by committees. Applications are assessed by volunteer committees appointed by the Minister of Internal Affairs. Committee members are typically community representatives with relevant expertise.

Assessment criteria. The Lotteries grant system assesses applications against the community benefit purpose, the organisation's financial management and governance, project viability, and value for money.

Notification. Applicants are notified of decisions — funded or declined — typically several months after application close.

Eligibility requirements

Charitable or community purpose. Organisations must be applying for a community benefit purpose. Private benefit is not eligible.

Legal entity. Applicants must be incorporated societies, charitable trusts, or companies with charitable purposes. Unincorporated groups typically need a fiscal sponsor.

Not-for-profit. Commercial organisations are generally not eligible.

Geographic nexus. For community committee applications, the project should benefit the community served by that committee's geographic area.

Common Lotteries grant purposes

Capital equipment. Lotteries committees often fund capital equipment for community organisations — vehicles for meal delivery, refrigeration for food banks, sports equipment for clubs.

Facilities development. Building or renovating community facilities — marae, halls, sports pavilions, heritage buildings.

Programme delivery. Funding for specific programmes and activities, particularly where other funding isn't available.

Conservation and environment. Heritage conservation, environmental restoration, and outdoor safety through the relevant national committees.

For grants managers receiving Lotteries-funded grants

Specific conditions. Lottery grants come with conditions — the grant must be used for the approved purpose, acquittal is required, and grants cannot be subcontracted without approval.

Acquittal requirements. End-of-grant acquittal confirms the grant was used as approved. Financial records must be maintained.

DIA monitoring. DIA has audit rights and may review how lottery proceeds have been used.

Restrictions on use. Lottery proceeds cannot be used to fund activities that are contrary to the law, used for private benefit, or for activities ineligible under the Gambling Act.


Tahua supports community organisations and funders managing Lotteries-funded grants alongside other funding sources — with conditions tracking, acquittal workflows, and multi-funder grant management in one system.

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