|Action||Promulgation of Charitable Gaming Regulations by Department of Agriculture and Consumer Services, including electronic gaming provisions|
|Comment Period||Ended on 11/23/2022|
11VAC20-20-10. Definitions. "Use of proceeds" means the use of funds derived by an organization from its charitable gaming activities, which are disbursed for those lawful religious, charitable, community, or educational purposes.”
B. Use of proceeds payments may be made for scholarship funds or for religious, charitable, educational, or community purposes.
C. Expenditures of charitable gaming funds for social or recreational activities or for events, activities, or programs that are open primarily to an organization's members and their families shall not qualify as use of proceeds unless substantial benefit to the community is demonstrated.
“Use of proceeds” is clearly defined as being the use of funds derived by an organization from its charitable gaming activities, which are disbursed for those lawful religious, charitable, educational, or educational purposes. Under section 11VAC20-20-20 this law states under section D that we are required to use a minimum of 10% of our gross receipts for all charitable gaming other than electronic gaming and 40% of our adjusted gross receipts for electronic gaming for lawful religious, charitable, community, or educational purposes. My question is this, is “use of proceeds” only referring to the minimum percentage of our charitable gaming funds disbursed for lawful religious, charitable, community, or educational purposes or is “use of proceeds” also referring to our remaining charitable gaming funds after we have met the minimum percentage given to lawful religious, charitable, community, or educational purposes? If “use of proceeds” is referring to both, then the absolute only we can disburse charitable gaming funds is for lawful religious, charitable, community, or community purposes which will indeed force us out of business because our club’s primary source of income is through charitable gaming, and it is those funds we must depend on to cover business expenses.
After we have met the minimum percentage requirement as defined under 11VAC20-20-20 section D, how we spend the remaining charitable gaming funds should be no concern to the Virginia State Government and should not be dictated by the Virginia State Government.
We have events and activities for our members and their families as a benefit for being a member. Prohibiting us from using OUR charitable gaming funds for such activities and events is wrong especially when it is our members who puts their money into our charitable gaming. Our club’s existence is a substantial benefit to the community because we give to the community.
In conclusion, it is my opinion that this law needs revamping. The minimum percentage for use of proceeds is too high and will not only hurt our fraternal clubs but will hurt our communities as well. The dictating of how we spend OUR charitable gaming funds is unacceptable. We should be allowed to freely use OUR charitable gaming funds as we wish. Our club’s business expenses rely heavily on OUR charitable gaming funds. The requirement that we make a bank deposit within two days of the conclusion of each session is infeasible and needs to be stricken from this law. We make a bank deposit once a week and that should be good enough.