Elementary School Fundraising Presentation: NYS Gaming Commission Regulations
This presentation covers information obtained from the NYS Gaming Commission website and NY General Municipal Laws Article 9A.185 to 195R regarding elementary school fundraising. It includes details on gaming commission regulations, licensing, conduct of games, raffles, definitions, delegation of authority, and registration requirements for organizations conducting games of chance. The content emphasizes compliance with legal guidelines and best practices for fundraising activities.
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Elementary School Fundraising Presentation Information obtained from the NYS Gaming Commission Website & NY General Municipal Laws Article 9A 185 to 195R Both subject to change
Todays Agenda A brief look at NYS Gaming Commission www.gaming.ny.gov: GC; General Provisions, Identification & Licensing (Subchapter A) Authorized GC, Conduct of Games & Supplies & Equip. (Sub B) Games of Chance Raffles General Conduct of GC Reporting (NYS / IRS / Parish) Scrip Best Practices Volunteer / Employee Other
Part 4600 Definitions, Delegation of Authority, etc. 4600.1 Definition of terms GC means and includes only the games known as merchandise wheels, raffles, bell jars, coin boards, merchandise boards, seal cards, and such other specific games as may be authorized by the commission. Prizes are awarded on the basis of a designated number or numbers, color or colors, symbol or symbols determined by chance, but not including bingo, lotto, slot machines, bookmaking, policy or numbers games and lottery
Part 4600 Definitions, Delegation of Authority, etc. 4600.1 Definition of terms License period means a period of time, not to exceed 14 consecutive hours, during which authorized GC commence & terminate, except that the license period for bell jar and raffles shall commence January 1 and terminate December 31 of such year.
Part 4600 Definitions, Delegation of Authority, etc. 4600.1 Definition of terms Raffles mean & include those games in which a participant pays money in return for a ticket or other receipt, in which a prize is awarded on the basis of a winning number(s), color(s), or symbol(s) designated on the ticket or receipt, which is determined by chance as a result of a drawing from among those tickets or receipts previously sold.
Part 4601 Registration & Identification Number 4601.1 Application requirements Every authorized organization desiring to apply for a license to conduct a GC shall register with the commission & secure an identification number before making such (license) application. 1A Application for Registration & Identification number - Bell Jar / Casino Nights / Raffles / Bingo
Part 4602 Licenses to Conduct GC: Applications 4602.1 Form for application Licensing Requirements: GC-2 Application for GC License (GC-2, 2A & 2B inclusive) (Bell Jar / Casino Nights / Raffles net profits > $30K) GCVS-1 Verified Statement for Raffle Ticket Operations (Raffles where net profits < $30K) If the net proceeds from any one raffle < $5K and the net proceeds from all raffles conducted within a calendar year are < $20K these entities need not seek approval, but need to follow general rules regarding raffles. If you subsequently exceed these amounts you can & should apply for license after the fact.
Part 4603 Licenses to Conduct GC: Issuance 4603.7 Frequency and time of license periods License restricted to 12 GC per year Games conducted: Monday Thursday; between noon and midnight Noon on Friday and 2 a.m. Saturday Noon on Saturday and 2 a.m. Sunday Restrictions in this section shall not apply when the games of bell jar and raffles are conducted. License periods for games bell Jar, coin board, merchandise board : seal card and raffle are January 1 to December 31.
Part 4603 Licenses to Conduct GC: Issuance 4603.8 Sunday, conduct of games on Except as provided in the GC Licensing Law, no games of chance shall be commenced under any license issued under this Chapter on Sunday, unless it shall be otherwise provided in the license issued for the conducting thereof, pursuant to the provisions of a local law duly adopted by municipality, authorizing such Notwithstanding the foregoing provisions of this section, no GC shall be conducted on Easter Sunday or Christmas Day.
Part 4603 Licenses to Conduct GC: Issuance Part 4605 Use of Net Proceeds, Reports 4603.9 Effective date of license (one year) 4603.11 Jurisdiction of license (municipality) 4603.13 Display of license (prominently display) 4605.1 Use of net proceeds (devoted to lawful purposes defined in GC Licensing Law) 4605.2 Report of net profits (if not reported, license may be denied, suspended or revoked)
Subchapter B Authorized GC, Conduct of Games & Supplies & Equipment Part 4620 Authorized Games of Chance 4620.1 Types of games 4620.2 Limit on types of games 4620.3 4620.24 details each game 4620.22 Raffles
Part 4620 Authorized Games of Chance 4620.22 Raffles Equipment. The equipment used in the conduct of raffles and the method of play shall ensure that each and every ticket to participate shall have an equal opportunity to be drawn as a winner. Raffle tickets, with the exception of the two-part admission-style tickets utilized in the game commonly known as a 50/50 raffle shall reflect the following: Name and, if required by subdivision (a) of section 4601.1 of this Chapter, the ID # of the authorized organization;
Part 4620 Authorized Games of Chance 4620.22 Raffles Raffle tickets, (cont d): The location(s), date(s) and time(s) of the drawing(s); The consecutively printed serial number of the ticket; The price of the ticket; A list of the prizes offered; The statement: Ticket holders need not be present to win ; and Each ticket stub or receipt shall reflect the name, address and telephone number of the ticket purchaser, and the consecutively printed serial number of the ticket.
Part 4620 Authorized Games of Chance 4620.22 Raffles Raffle tickets. Each part of a two part admission- style ticket used in the game commonly known as a 50/50 raffle shall bear an identical, consecutively printed serial number, to be used in verifying the winning ticket. The play No single prize shall exceed the sum of $100,000. The aggregate FMV of all prizes to be offered or awarded by a licensee in raffles in any one calendar year (license period) shall not exceed $2,000,000.
Part 4620 Authorized Games of Chance 4620.22 Raffles The play (cont d) The method of drawing and determining the winning ticket(s) shall be clearly announced and described prior to drawing a ticket. Each drawing shall be conducted openly and in plain view of the ticket purchasers present. May not be held on Easter Sunday or Christmas Day (GML 195) No ticket shall be sold in conjunction with any raffle, including raffles in which winning tickets are scheduled to be drawn on multiple dates, more than 180 days prior to the date scheduled for the drawing of the last ticket in that raffle.
Part 4620 Authorized Games of Chance 4620.22 Raffles The play (cont d) All raffle tickets, with the exception of the two-part 50/50 raffle type, shall be sold at a uniform price per ticket, unless the discount offered is based on the selling price per book of tickets and the price per single ticket and the discounted price per book of tickets are printed on each ticket. The value of merchandise to be awarded as a raffle prize shall be the FMV of the merchandise at the time of submission of an application or verified statement for a raffle license.
Part 4620 Authorized Games of Chance 4620.22 Raffles The play (cont d) Purchasers of raffle tickets need not be present at the raffle drawing to win. Alcoholic beverages may be sold and consumed in locations where raffle tickets are sold and raffle drawings are conducted. (Insurance Services) Alcoholic beverages shall not be awarded as a raffle prize.
Part 4620 Authorized Games of Chance 4620.22 Raffles The play (cont d) No commission, salary, compensation, reward or recompense shall be paid or given to any person for the sale or assisting with the sale of raffle tickets. NY General Municipal Law 195 c1 (re: compensation) No commission, salary, compensation, reward or recompense shall be paid or given to any person for the sale or assisting with the sale of raffle tickets.
Part 4622 General Conduct of Games of Chance 4622.1 Duties of member in charge The officers of every authorized organization licensed to conduct GC shall designate not less than four bona fide members of the licensee to be in charge and primarily responsible for the management of the GC during each license period. Such members shall supervise all activities during the license period for which they are in charge and shall be responsible for the making of the required report thereof, GC-7, GC-7Q or GC-7R.
Part 4622 General Conduct of Games of Chance 4622.1 Duties of member in charge (cont d) The members in charge shall be familiar with the provisions of the GC Licensing Law, the applicable ordinances or local laws, the rules and regulations of the commission and the terms of the license. A member in charge shall be present on the premises where the game or games are conducted at all times during the license period.
Part 4622 General Conduct of Games of Chance 4622.2 Minors Persons under 18 years of age may be permitted to attend GC license periods at the discretion of the GC licensee, but shall not be allowed to participate in the operation or play of any game or GC. One or more signs restricting participation of persons under 18 years of age shall be prominently displayed in each playing area. The commission shall penalize a licensee found to have violated subdivision (a) of this section as follows: 1stviolation is a written warning; 2ndwithin one year, $500 fine; 3rdwithin one year, $1,000 fine; 4thwithin one year, possible suspension or revocation of license
Part 4622 General Conduct of Games of Chance 4622.3 Restriction on participation No person shall assist in the management of GC except a bona fide member of the licensee. No person shall assist in the operation of GC except a bona fide member of an organization which is an auxiliary or an affiliate of the licensee. Nonmembers may assist the licensee in any activity other than managing or operating GC No person under the age of 18 years shall be permitted to assist in the conduct of GC or participate in the play. Same penalties apply as for Minors above.
Part 4622 General Conduct of Games of Chance 4622.4 Designation of officer responsible The officers of a licensee shall designate an officer to be in full charge of, and primarily responsible for, the proper utilization of all monies derived from the conduct of GC in accordance with the GC Licensing Law and this Chapter. Not less than two members shall be responsible for counting the GC receipts.
Part 4622 General Conduct of Games of Chance 4622.5 Payment of person conducting GC No commission, salary, compensation, reward, recompense, reimbursement of expenses or gift or other consideration shall be paid, directly or indirectly, to any person for conducting or assisting in the conduct of any game or GC, except hereinafter provided for bookkeepers or accountants rendering professional services. No tip, gratuity or gift or other consideration shall be offered, given or accepted by any person conducting or assisting in the conduct of a game or GC, either directly or indirectly, and one or more signs prohibiting tipping shall be prominently displayed in each playing area.
Part 4622 General Conduct of Games of Chance 4622.5 Payment of person conducting GC No person shall offer, solicit or receive any gift or donation or other consideration, directly or indirectly, on the premises during the conduct of a license period of GC. NY General Municipal Law 189 (Restrictions GC) # 11. No person shall receive any remuneration for participating in the management or operation of any such game.
Part 4622 General Conduct of Games of Chance 4622.6 Compensation of bookkeepers & accountants Bookkeepers and accountants receiving compensation for their services shall not participate or assist in any capacity in the conduct of the games. The fees paid for bookkeeping or accounting services shall not exceed those set forth in the following schedule: Preparing Financial Statement of GC Operations (GC-7) - $25 per license period; Preparing and maintaining the bookkeeping system required during the months when casino-type games and raffles are conducted - $50 per month;
Part 4622 General Conduct of Games of Chance 4622.6 Compensation of bookkeepers & accountants The fees paid for bookkeeping or accounting services shall not exceed those set forth in the following schedule (cont d): Preparing and maintaining the bookkeeping system required during the months when bell jars are conducted - $100 per month; Preparing Quarterly Statement of Bell Jar Operations (GC-7Q) - $75 per statement; Preparing Financial Statement of Raffle Operations (GC- 7R) - $25 per statement.
Part 4622 General Conduct of Games of Chance 4622.10 Sale of merchandise prohibited Sale of merchandise prohibited The sale or offering for sale of any merchandise within one-half hour prior to, during, or within one-half after the conclusion of any GC license period is prohibited, except: For the sale of or offering for sale of GC supplies or bell jar tickets by the licensee, or The sale of food or refreshments, if authorized, by the licensee.
Part 4622 General Conduct of Games of Chance 4622.12 Maximum value of prizes offered No single prize in any casino-type GC shall exceed the sum or value of $300, In the GC known as merchandise wheels, no single prize consisting of merchandise shall exceed a value of $250, In the GC known as bell jars, no single prize shall exceed the sum of $500, In the GC known as raffle no single prize shall exceed the sum of $100,000. See 4622.12 for further limitations.
Part 4622 General Conduct of Games of Chance 4622.13 Value of merchandise prizes Value shall be its cost to the licensee or, if donated, its current market value, No merchandise prize shall be redeemable or convertible into cash directly or indirectly by the licensee, No alcoholic beverage shall be offered or given as a prize in any game of chance.
Part 4622 General Conduct of Games of Chance 4622.14 Gifts prohibited No licensee shall offer, distribute or give any service or thing of value, including but not limited to door prizes, food, refreshments and alcoholic beverages, in connection with a license period.
Part 4622 General Conduct of Games of Chance 4622.19 Badges 4622.20 Persons prohibited as players 4622.21 Cashing of checks prohibited 4622.22 Operation of bank 4622.23 Sale & consumption of alcoholic beverages 4622.24 Rules & bulletins available at games 4622.25 Qualifications of members in charge 4622.26 Advertising GC Part 4623 GC Supplies & Equipment
Charitable Gaming Reporting Requirements Bingo BC-7 Financial Statement of Bingo Operations (Municipal Clerk only 7 days after each occasion) BC-7B Cash Control Report (submit with BC-7) BC-7Q Quarterly Statement of Bingo Operations (Clerk & NYS Board within 15 day EOQ) Games of Chance (Wheels / Bell Jar / Raffles) GC-7 Financial Statement for GC Operations (Wheels) (original to Municipal Clerk, copy to NYS 7 days after license period) GC-7B Cash Control Summary (submit with GC-7 for Vegas Nights, Carnivals, Bazaars only)
Charitable Gaming Reporting Requirements Games of Chance (cont d) GC-7Q Quarterly Statement of Bell Jar Operations (original to NYS within 15 days after each quarter) GC-7Q Schedule 1 Bell Jar Deals Sold (must accompany GC-7Q) Raffle Category 1 Cumulative net proceeds from all raffles in a calendar year > $30K Need to obtain an ID # from NYS Board of Racing & Wagering Obtain a further license from the clerk of relevant municipality Comply with local restrictions GC-7R Financial Statement of Raffle Operations (copy to NYS & Municipal Clerk)
Charitable Gaming Reporting Requirements Raffle Category 2 Net proceeds from single raffle > $5K or cumulative all raffles > $20K but < $30K Need to obtain an ID # from NYS Board of Racing & Wagering File a further statement with clerk of relevant municipality GCVS-2 Verified Statement of Raffle Operations (original to Municipal Clerk & copy to NYS) Raffle Category 3 Net proceeds single raffle < $5K and cumulative all raffles < $20K Need not seek approval, but need to follow general rules GCVS-2 Verified Statement of Raffle Operations Category 1 & 2 reporting required if applicable
Charitable Gaming Reporting Requirements The above thresholds are based on a calendar year and if you had not applied because you thought the raffle would be below the $5,000 / $20,000 threshold and then exceed those amounts, you can and should apply for the license after the fact. The proceeds from any raffle must be placed in a segregated account, and used for a lawful purpose (charitable, religious, etc.). Before conducting any raffle you should review the local laws to ensure no additional requirements.
Guidelines for the proper reporting of Gambling Winnings such as Raffles & Drawings (IRS) When an organization pays gambling winnings valued at $600 (Bingo $1,200) or more, and at least 300 times the amount of the wager, or the winnings are subject to federal income tax withholding, a Federal Form W-2G must be prepared and issued. Example(s): Mr. G buys a $2 raffle ticket. Mr. G s number is drawn and he wins $1,000. Because the winnings ($998) are greater than $600 and more than 300 times the wager, you must report winnings to the IRS.
Guidelines for the proper reporting of Gambling Winnings such as Raffles & Drawings (IRS) Example(s) (cont d): Mr. S buys a $2 pull-tab and wins $600. You may reduce the winnings by the wager, in which case the winnings are $598. You do not have to report the winnings because the $600 threshold is not met. Ms. C plays bingo, wins the jackpot of $1,200. You must report Ms. C s winnings because the winnings are $1,200 or more before deducting the amount of the wager. Net winnings >$5,000 are subject to withholding of federal income tax. State income tax withholding is not required.
Guidelines for the proper reporting of Gambling Winnings such as Raffles & Drawings (IRS) The amount of federal tax is calculated at 28% o f the net winnings. Example Mr. L purchased a $1 raffle ticket. Mr. L s number is drawn and he wins $6,000. Because the proceeds exceed $5,000 ($6,000 prize minus $1 ticket), you must withhold $1,680 ($5,999 x 28%) from the winnings. Each winner of $600 + must complete Form W-9 (Request for Tax ID #); if not, backup withholding (28%).
Reporting Results - Parish Financial statement Income Expenses Surplus / Deficit Signed by Chairperson / Treasurer / Organization President
Scrip Program Information per IRS Letter Ruling (intended for entity requesting) not tax law Gives indication how the IRS might view Program The IRS considers Scrip fundraising activities a trade or business. Profits are exempt from income tax when volunteer hours are at least 85% of the total hours it takes to run program. It is the responsibility of each participating parish / school to maintain any records necessary to show this is the case. Maintain a record of the hours complied for each volunteer and paid employee. If you fail the 85% test, a federal form 990T must be prepared and tax paid on the profits.
Best Practices - General All activities must comply with the laws of the State of New York and where applicable Fed (IRS). All fund-raising activity should be transacted through the parish operating account unless a separate account is required by law (bingo, bell jar, GC, raffle). Document procedures to be used at the fundraiser and, in particular, those to be used for the handling of currency (cash and checks). These should be reviewed by the parish Finance Council.
Best Practices - General Take measures to ensure individuals involved in currency handling do not have the ability to easily remove cash from currency handling areas. Event coordinators should develop and maintain lists of event participants, amounts of cash received from specific participants, lists of fundraising expenses supported by invoices and receipts, registration forms, etc., as well as all other pertinent records related to the events.
Best Practices - General All lists, records, receipts, licenses, and donated items pertinent to the event should be kept on parish premises before, during and after the event. Licenses should be displayed as required. Obtain certificates of insurance from any service providers at fundraising events. If there are question, contact Insurance Services at 847-8396. Obtain a Form W-9 Request for Taxpayer Identification Number from all event vendors, such as security personnel, entertainment, etc. who will be providing services for the event so Form 1099 Misc. can be issued.
Best Practices - General Obtain a Beer and Wine permit for events where alcohol will be sold. Also, notify Insurance Services in advance when alcohol will be served or sold for consumption at the event. All contracts, solicitations, and thank you letters should be signed by the Pastor. It is recommended at least one member of the fundraising committee serve as a liaison to the Finance Council to ensure the Finance Council is fully informed of the progress, challenges, and results of the event.
Best Practices Before the Event Procedures should be in place to ensure any cash advance money are tracked & unused funds are returned; paid invoices should be obtained for all cash advance money spent. Procedures should be in place to ensure start-up funds or seed money are tracked and returned. Start-up checks should be made payable to an individual (not cash ) as custodian for the event, cashed by this individual, utilized at the event, and then separately accounted for when re-deposited.
Best Practices Before the Event Sold, unsold, and returned tickets should be tracked. For events with tickets sold at different price points (e.g., $1 each or $5 for a book of 6 tickets), the quantity sold at each price point should be tracked separately. The retention of certain tickets is mandated by law. Bell jar winning and unsold tickets. Raffle all winning tickets, unsold tickets and sold ticket stubs. A Xerox copy of one raffle ticket and stub should be made and retained with the fund raiser records.
Best Practices During the Event (where applicable) For [lawn fetes, carnivals, and similar events] we strongly recommend utilizing tickets rather than accepting cash at any number of booths. Generally, it is not a good idea to cash personal or parish / school checks at any event for cash from the count room / un- deposited funds. Two unrelated individuals should be present with the currency at all times collection, counting, and deposit.
Best Practices During the Event (where applicable) Periodic cash pick-ups should be made from the areas which handle cash to avoid having too much cash on the grounds. Counted by booth chairperson & pickup person at the booth; documented (signatures) in a pre-numbered triplicate copy receipt book or booth tally sheet, or Pre-numbered tamper-evident bag transported directly to the counting room Tamper-evident bags controlled, distributed and tracked by someone who doesn t touch cash. Use a control log. Cash should be immediately deposited (night depository). If not possible the funds and deposit ticket s/b sealed in bank deposit bag and locked in a safe; never taken to vol. house.
Best Practices During the Event (where applicable) Retention of certain tickets, including winning tickets for raffles, is mandated by law. All fund-raising supporting documentation s/b retained, including: List donors/sponsors/donated items Control report of Bell Jar ticket sales Documentation of presale tickets sold Cash count sheets Booth tally sheet & pickup slips Adding machine tapes Tamper-evident bag control log Duplicate deposit tickets Raffle winning & unsold tickets Validated deposit receipts Raffle sold ticket stubs Paid invoices Bell jar winning tickets & unsold tickets All other relevant items
