What is an Exempt Organization?
Some organizations may qualify to be exempt from licensing and reporting requirements to conduct certain types of games of chance. In order for the Office of Charitable Gaming to determine if an organization qualifies for an exemption, the Office requires the organization to complete an “Application for License Exemption to Conduct Charitable Gaming”
These organizations are still required to maintain records and all net proceeds must be devoted solely to religious, charitable, patriotic, public spirited, or educational purposes. Net proceeds consist of all revenues collected less cost of prizes and other reasonable and necessary expenses of the gaming activity.
Below are examples of activities that would qualify as exemption activities:
A bona fide senior citizen recreation club that conducts bingo and/or raffles to provide amusement and diversion for its members and has applied to their local government.
- A club, group, or association comprised exclusively of children enrolled in a public or private nonprofit school that conducts only raffles and has approval to conduct gaming activities in the name of the school (approval should be in the form of a letter from the principal or school board).
- A charitable organization that conducts only raffles and provides support to any elementary or secondary school or uses proceeds for other community support purposes. If organization does not have a 501(C) status with the Internal Revenue Service, then the organization is limited to deriving $5,000 of gross receipts from charitable gaming during a calendar year.
- A bona fide conservation organization that conducts only raffles and is dedicated to the conservation of game animals (such as ducks, waterfowl, quail, turkeys, etc).
- Any organization that would otherwise meet all statutory and regulation requirements that conducts bingo and/or raffles only and meets the following criteria:
- Conducts no more than five sessions per year
- Gross receipts from ALL gaming activities do not exceed $5,000 per year
- Gaming activity is conducted on totally donated premises
- No other games of chance are conducted (such as pull tabs and electronic video bingo machines)
If you feel that your organization should be exempted but it does not meet the requirements of one of the above categories, please contact the Office of Charitable Gaming