The regulations being considered will have a negative effect on Elks Lodges in Virginia. The use of proceeds of 40% is outrageous. If this level of Use of Proceeds becomes law, the following will happen in the Elk Lodges thoughout Virginia.

• Many lodges will have to close because at present many cannot make 10% Use of Proceeds.
• Closing Lodges will remove approximately $1,000,000 from local Charities
• The lodges that stay open will have to decrease Charitable giving to handle the 40% Use of Proceeds.

Elks along with many other dedicated fraternal and Veterans organizations, give to local charity groups in a effort to help the needy and deserving in their respective communities. If the Elks and other similar groups cannot make 40% Use of Proceeds, who will pick up the lost revenue to support local charities. I believe a 10% Use of Proceeds would be welcome by Virginia Elks Lodges.

Bob Conway

State Government Relations Chair