Kenneth Niman Massanutten Fraternal Order of Eagles #4186
40% State Requirement + 10% Federal Requirement = $0
To be considered non-profit, the Federal Government requires Fraternal Organizations like ours to give 10% of our profits to charity. Now the Virginia State Government is requiring us to give another 40% of our electronic charitable gaming profits to charity making the total percentage 50%. Let me put this into perspective...
$2,000 charitable gaming Gross Income
10% (Federal requirement) + 40% (Virginia State requirement) = 50%
50% of $2,000 is $1,000
50/50 split with Grover Gaming is $1,000
- $1,000 to Charity (50%)
- $1,000 to Grover Gaming leaves us with $0 of the $2,000.
Operation costs for electronic charitable gaming (wages, electric, trash disposal, cleaning supplies) puts us in the negative to have electronic charitable gaming netting us $0.
If I am reading this law wrong please clarify because if this is the way the law is going to be then I cannot see any reason for us to have electronic charitable gaming which is going to kill our club.