Applications for exemption and miscellaneous determination requests are assigned to Exempt Organizations specialists for review. If additional information is necessary to make a determination, a specialist will contact the organization for the information. Here’s a list of questions that might be asked on this topic.
1. For each gaming activity you conduct (or plan to conduct), provide the following information:
a. The name of each gaming activity.
b. Whether members of the general public will participate in your gaming activity or whether your gaming activity will be limited to members of your organization.
c. When you began (or plan to begin) conducting the activity.
d. The percentage of your time and resources you expect to devote to each gaming activity
e. The number of hours you expect to hold the gaming activity each month.
f. A statement describing how you use your gaming proceeds, including whether you give your gaming proceeds to other organizations.
g. If you give your gaming proceeds to other organizations, describe how do you decide which organizations receive your proceeds.
h. Submit copies of advertisements, flyers, pamphlets, announcements, or other literature that describe your exempt, gaming, or other activities.
2. For each of your gaming activities, state whether you will use volunteers or compensated individuals for various aspects of the gaming operation. Examples of aspects of the gaming operation would include, but are not limited to: managing bingo operations; providing bingo cards, pull-tabs, and supplies; providing concessions; providing security; and providing janitorial services.
a. If compensated individuals are used, provide the following information:
- List the compensated individuals, their job title, and a detailed duty description.
- State the number of hours each position requires per week and the number of hours that are related to the operation of gaming activities.
- State the amount of compensation for each person or position (if it is not currently filled).
- Explain how you determine the compensation for each position, including who in your organization is responsible for setting the compensation amount.
- Identify any relationship that each compensated individual may have with any of your officers, directors, trustees, or members.
b. If volunteers are used, provide the following information:
- List how many volunteers you use each game/session.
- Describe the duties the volunteers perform.
- State how many hours volunteers work each session and each week
- State whether you provide volunteers with reduced fees or tuition dependent on the individual volunteering for the gaming activity.
- State whether the volunteers receive tips. If so, describe how you record the tips in your books and records.
3. Have you ever, or do you plan to, contract with a third party to operate your gaming activities and from whom you will receive your gaming revenue? If so, provide the following information:
a. A description of who initiated the initial contact – you or the gaming operator.
b. An explanation of how and why you chose the gaming operator.
c. A description of your relationship with the gaming operator.
d. Identify any relationship that exists between the gaming operator and any of your directors, officers, trustees, or members.
e. Submit all copies of contracts you have entered into with any gaming operator.
4. Is the facility where you conduct your gaming activities a commercial gaming facility?
5. Is the owner of facility where you conduct your gaming activities also one of your directors, officers, trustees, or members?
6. Submit copies of all contracts or leases you have with any individual or business, including any lessors that provide you with goods or services related to your gaming activities.
7. Are you a grantor, beneficiary or trustee of a trust or member of a partnership or other entity formed to administer charitable gaming?
8. Provide the following financial information for all gaming activities (both for your current tax year, and projected for your next two tax years):
a. Gross income from each gaming activity, broken out by game category (ex. bingo, pull-tabs, raffles, etc.).
b. Gross income from non-gaming sources (such as concessions or sales of gaming supplies) that occur during or are related to your gaming activity. List each source separately.
c. Prizes paid out in each gaming category.
d. Rent, salaries, contract payments, and other expenses from gaming activities, itemizing each expense.
e. Net income from each gaming activity.
9. Describe the records that you keep to document your gross receipts (before payouts) and disbursements (including payouts), including whether you keep separate records for each gaming activity.
10. Submit a copy of your state and/or local laws that allow you to conduct bingo or other gaming activities.
See the complete list of Applying for Exemption/Miscellaneous Determination Sample Questions by topic.