Lots of charitable organization these are actually raising their funds by organizing a gambling event. Although gambling with a purpose has great intentions and that is to help others. Little that they know that what they think is a small event can trigger their states solicitation laws.
In general, most states have their own law when it comes to regulating solicitation even for charitable purposes. What is solicitation? According to the dictionary, it is a respectful request using only formal application. This request can be applied in selling and requesting the public to attend a party or other forms of entertainment like gambling.
Although solicitation is normal for organizations, they might find it hard to comply with the states charitable solution law. The charitable solicitation laws differ from one state to another. With such law, the government is asking organizations to register on specifically on agencies such as the Office of the Attorney General as the organization engaged in a solicitation.
Aside from that, community organizations are required to file annual reports with the state agency and ensure that the solicitation is properly disclosed to the donors and potential donors. Aside from the charitable solicitation law that differs from one state to another, certain concepts are common to all such as,
A. Ideal organization
There is what we call as charitable gambling exception and that is only applicable to non-profit organizations that are created for public interest and for religious purposes like, conducting religious activities, it should benefit the veterans of armed forces and to promote the welfare of the poor and aged.
B. Authorized Games approved by the state
The authorized games for charitable events include the following: bingo, raffles pull tabs, and drawings. In most states, they are prohibiting organizations from conducting the traditional casino games such as craps, roulette, slot machines and blackjack.
C. Other important restrictions
The proceeds of the gambling event must be used for charitable or religious purposes. With the addition to that, some states limit the area where the event can be played. It can only be played within the physical location of the Eligible organization or to the area leased by the organization. As the state review the appropriateness of the area, some state like New York is requiring that local municipalities must also approve the charity event.
Although gambling activities are a great idea in capturing people’s attention and effective on raising funds, organizations should remember that they have federal and state restrictions to follow or else they could end up facing grave penalties.