fbpx

< Back to Thought Leadership

Is Charitable Gaming For You?

By Mike Gricius, CPA  – Manager

Should your organization offer gaming as a means of raising additional funds? Several charitable organizations are actively using raffles and other gaming activities as a fundraising mechanism to raise funding to support the organization’s mission and purpose.

The decision to be involved in such activities needs careful thought and planning by each organization. The most important factor is the legality that must be followed. It would be in the best interest of the organization to contact the state’s gaming commission to understand and to obtain information related to gaming activities.

There are many allowable gaming events that charitable organizations can pursue for fundraising. Some of these events include bingo, door prizes, raffles, festivals, and pull tabs.

In general, a charitable organization needs to be a qualified organization as defined by the Internal Revenue Service to be an active participant.

For each gaming activity allowed by the state’s gaming commission, a license needs to be obtained which is done by filing an application and payment of a fee. Once an organization chooses to hold a gaming activity, there are several regulations and rules that must be followed. For example, the use and determination of net proceeds, financial records, and event limitations.

For a complete definition of qualified organization and lists of rules and regulations, see Indiana Code: Charity Gaming Statute IC 4-32.2 which can be found at www.in.gov. Rules and regulations may vary between states, so please check with the gaming board of each state.

Gaming events can create an opportunity to attract more funding for a charitable organization, but as pointed out above, such activities must be done legally. Failure to abide by the rules and regulations will result in disciplinary action that leads to monetary penalties.

Therefore, it would be good practice to consult with legal counsel and to contact the state’s gaming commission to understand and to obtain information prior to being a participant in such events.

Blue & Co., LLC acquires Alerding CPA Group

Blue & Co., LLC acquires Alerding CPA Group

Carmel, Ind. (November 23, 2022) – The accounting and consulting firms of Alerding CPA Group (Indianapolis, Ind.) and Blue & Co., LLC (Carmel, Ind.) have announced their merger. The combined firm will operate as Blue & Co., LLC (Blue & Co.), effective December 1, 2022. This acquisition will provide Blue & Co. with greater market […]

Learn More

Not-for-Profit Single Audit Requirements – Evaluation of Revenue Sources

By: Holly Fields, CPA, Senior Manager Not-for-profit organizations (NFPs) that receive federal financial assistance over certain levels, either directly from a federal agency or indirectly through state or local agencies, may be required to have a single audit performed under Federal Uniform Guidance. Single Audit Requirements A single audit includes not only an audit of […]

Learn More

Occupational Mix Survey: What You Need to Know

Every three years, the Centers for Medicare and Medicaid Services (CMS) requires any Hospital that is subject to the Inpatient Prospective Payment System (IPPS) to complete an Occupational Mix Survey (OMS). This data is then used to calculate an Occupational Mix Adjustment Factor (OMAF). The occupational mix adjustment impacts a hospital’s average hourly wage and […]

Learn More