Non-licensed fundraising
Your organization may be able to raise funds legally without a gambling license (but under strict regulations).
According to the Minnesota Council of Nonprofits: 501(c)3 organizations do not have to obtain a license if gambling is conducted for five or fewer days a year with total prizes not exceeding $50,000. No license is required for bingo conducted at fairs for up to 12 days a year and bingo conducted elsewhere for up to four days a year. Raffles with a prize of no more than $1,500 also do not require a license.
See Gambling that is exempt from licensing in
this article.
See also 501(c)3 information below.
Fundraising - MN Gambling 02921
The Annandale Lion's Club has charitable gambling funds available as donations for organizations that meet state of Minnesota lawful purpose code and the club's discretionary criteria. We require a copy of your IRS 501(c)3 determination letter. See Criteria near bottom.
Federal Employer Identification or MN Sales Tax Exemption or 501(c)4 certification do not suffice for the I.R.S. 501(c)3. Example of the I.R.S. determination letter we require.
Important notes before requesting charitable funds:
- The board meets the third Wednesday of the month, so all requests must be received before 3 pm the Monday prior.
- Requests after that deadline may not be on the agenda and would be deferred to the following month.
- Your request for funds must be completed in time and for each event. Requests are not carried over between events or to the following year - you must reapply...
Meat Raffle Donation Application (see also request for funds below)
You can generate funds for your organization by providing ticket seller volunteers for the meat raffles held at various area establishments. You are required to provide (at least) two volunteers that will sell tickets for each week during your assigned month, but ideally have 4 sellers so they can rotate out, relax and enjoy the evening too. Expect about two hours each session.
If your application passes the acceptance criteria*, you will be awarded the proceeds from a weekly meat raffle for one month. Throughout that month your organization could yield over $200 per week, which will be issued in the following month.
*All expenditures from gambling proceeds must, by law, meet certain criteria (below) and be approved by the membership before issued.
Because local businesses and many individuals are committed to charitable causes like yours, tickets sales are generally robust. But to boost sales and make a fun evening for your volunteers, organizations are encouraged to get other members, friends and family involved as well. Please print a copy of these reminders for sellers.
Online request form or complete, print and mail or email to annandalelionsclub@gmail.com
Organization may run raffles at certain locations making even more money. If so, please print and review this information with your volunteers.
Request for Charitable Funds
If your organization has a need for direct funds, you must submit a written request.
Request form DOCX or
PDF
Print and mail (or email to annandalelionsclub@gmail.com).
Annandale Lions Club, PO Box 285, Annandale MN 55302
Criteria
IRS 501(c)3 Determination Letter example
If you do not have a 501(c)3, we may be able to reimburse you for purchases if those items meet the criteria found per the State's Lawful Purpose.
Reasonably current receipts can be accepted if those receipts are plainly identifiable as expenses meeting the State's LPE (above link). Examples:
- Acceptable: Receipts for children sport's uniforms and equipment, school books, medical supplies for elderly, scholarships paid to the student.
- Unacceptable: Receipts for items not be plainly identifiable as a youth, elderly or other approved LPE.
A very easy way to handle funding is through your local church, school, government or an organization with the required 501 documentation. Simply make arrangements with that entity - we issue the check to them, they issue a check to you...
Questions? Contact the gambling manager: gm @ annandalelionsclub.org
If you do not have a copy of your IRS 501(c)3 Determination Letter (see this example), you will need to obtain it. see this IRS site.
Note: If your organization has a parental entity example: Annandale Lions Club's parent is Lions International, chances are you will be unable to obtain a determination letter for your local chapter, rather the IRS will refer to the parent. If this is the case, we are obligated to make the check out to that parental entity...
Apply for a 501(c)3:
- The “streamlined - EZ” application information (some 20 pages): https://www.irs.gov/forms-pubs/about-form-1023ez
Other links and information:
- General information: https://www.irs.gov/charities-non-profits/how-to-contact-the-tax-exempt-and-government-entities-division
- Exemption Requirements - 501(c)(3) Organizations: https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-section-501c3-organizations
- Publication 4220, Applying for 501(c)(3) Status (PDF):
https://www.irs.gov/pub/irs-pdf/p4220.pdf