Nonprofits often hold a variety of events to help raise funds for their organizations that fall under the charitable gaming rules. However, an organization conducting any type of gaming should understand how the activity can impact its federal tax-exempt status, as well as the tax and reporting responsibilities.
What is charitable gaming?
Charitable gaming can be defined as raising funds through “chance” type activities where the proceeds are given to the charitable cause.
Some of the more common events are:
- Bingo games
- Scratch-off tickets
- Texas Hold-Em poker
- Other card games/casino nights
While the profits from some bingo games are not taxable, generally charitable gaming is subject to taxation for the nonprofit organization.
If your nonprofit is holding gaming type events or activities, take some time to check out the short training videos at http://www.michigan.gov/cg to help ensure compliance with the rules. Another helpful tool can be found at https://www.irs.gov/pub/irs-pdf/p3079.pdf .
If you have further questions about your organization and its gaming activities, please contact Brenda Jacobs at (231) 726-5880 or firstname.lastname@example.org.
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