Who can conduct charity gaming in Indiana?

Published 04/21/2008 11:48 AM   |    Updated 05/20/2009 05:37 PM

Who can conduct charity gaming in Indiana?

Only a qualified organization can conduct charitable gaming in the State of Indiana. 

 

A qualified organization is:

IC 4-32.2-2-24 "Qualified organization"

    (a) "Qualified organization" means:

        (1) a bona fide religious, educational, senior citizens, veterans, or civic organization operating in Indiana that:

            (A) operates without profit to the organization's members;

            (B) is exempt from taxation under Section 501 of the Internal Revenue Code; and

            (C) has been continuously in existence in Indiana for at least five (5) years or is affiliated with a parent organization that has been in existence in Indiana for at least five (5) years;

        (2) a bona fide political organization operating in Indiana that produces exempt function income (as defined in Section 527 of the Internal Revenue Code); or

        (3) a state educational institution (as defined in IC 20-12-0.5-1).

    (b) For purposes of IC 4-32.2-4-3, a "qualified organization" includes the following:

        (1) A hospital licensed under IC 16-21.

        (2) A health facility licensed under IC 16-28.

        (3) A psychiatric facility licensed under IC 12-25.

        (4) An organization defined in subsection (a).

    (c) For purposes of IC 4-32.2-4-10, a "qualified organization" includes a bona fide business organization.

 

 

IC 4-32.2-2 describes the types of non -profit organizations that may apply to conduct charity gaming as:

 

  1) IC 4-32.2-2-5 - "Bona fide business organization"

     Sec. 5. "Bona fide business organization" means a local organization that is not for pecuniary profit and is exempt from federal income taxation under Section 501(c)(6) of the Internal Revenue Code.

 

  2) IC 4-32.2-2-6 - "Bona fide civic organization"

     Sec. 6. "Bona fide civic organization" means a branch, lodge, or chapter of a national or state organization that is not for pecuniary profit or a local organization that is not for pecuniary profit and not affiliated with a state or national organization whose written constitution, charter, articles of incorporation, or bylaws provide the following:

        (1) That the organization is organized primarily for civic, fraternal, or charitable purposes.

        (2) That upon dissolution of the organization all remaining assets of the organization revert to nonprofit civic or charitable purposes.

 

  3) IC 4-32.2-2-7 - "Bona fide educational organization"

     Sec. 7. "Bona fide educational organization" means an organization that is not for pecuniary profit and that meets the following criteria:

        (1) The organization's primary purpose is educational in nature.

        (2) The organization's constitution, articles, charter, or bylaws contain a clause that provides that upon dissolution all remaining assets shall be used for nonprofit educational purposes.

        (3) The organization is designed to develop the capabilities of individuals by instruction in a public or private:

            (A) pre-elementary educational development program;

            (B) elementary or secondary school; or

            (C) college or university.

 

  4) IC 4-32.2-2-8 - "Bona fide political organization"

     Sec. 8. (a) "Bona fide political organization" means a party committee, association, fund, or other organization, whether incorporated or not, organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures, or both, for an exempt function (as defined in Section 527 of the Internal Revenue Code).

    (b) Except as provided in subsection (c), the term does not include a candidate's committee (as defined in IC 3-5-2-7).

    (c) For purposes of IC 4-32.2-4-8 and IC 4-32.2-4-18, the term includes a candidate's committee (as defined in IC 3-5-2-7).

  5) IC 4-32.2-2-9 - "Bona fide religious organization"

     Sec. 9. "Bona fide religious organization" means an organization, a church, a body of communicants, or a group:

        (1) organized primarily for religious purposes and not for pecuniary profit that provides to the commission written confirmation that the entity is operating under Section 501 of the Internal Revenue Code or under the Section 501 nonprofit status of the entity's parent organization; and

        (2) whose constitution, charter, articles, or bylaws contain a clause that provides that upon dissolution all remaining assets shall be used for nonprofit religious purposes or shall revert to the parent organization for nonprofit religious purposes.

 

  6) IC 4-32.2-2-10 - "Bona fide senior citizens organization"

     Sec. 10. "Bona fide senior citizens organization" means an organization that is not for pecuniary profit and that:

        (1) consists of at least fifteen (15) members who are at least sixty (60) years of age;

        (2) is organized by the organization's constitution, charter, articles, or bylaws for the mutual support and advancement of the causes of elderly or retired persons; and

        (3) provides in the organization's constitution, charter, articles, or bylaws that upon dissolution all remaining assets of the organization shall be used for nonprofit purposes that will support or advance the causes of elderly or retired persons.

 

  7) IC 4-32.2-2-11 - "Bona fide veterans organization"

     Sec. 11. "Bona fide veterans organization" means a local organization or a branch, lodge, or chapter of a state or national organization chartered by the Congress of the United States that is not for pecuniary profit and that:

        (1) consists of individuals who are or were members of the armed forces of the United States;

        (2) is organized for the mutual support and advancement of the organization's membership and patriotic causes; and

        (3) provides in the organization's constitution, charter, articles, or bylaws that upon dissolution all remaining assets of the organization shall be used for nonprofit purposes that will support or advance patriotic causes.

 

  8) IC 4-32.2-4-18 - Candidates' committees authorized to obtain raffle licenses and conduct door prize drawings at raffle events

     Sec. 18. (a) With respect to any action authorized by this section, a candidate's committee (as defined in IC 3-5-2-7) is considered a bona fide political organization.

    (b) A candidate's committee may apply for a license under section 8 of this chapter to conduct a raffle event. A candidate's committee may also conduct a door prize drawing at the raffle event but is prohibited from conducting any other kind of allowable event.

    (c) The following are subject to this chapter and IC 4-32.2-6:

        (1) A candidate's committee that applies for a license under section 8 of this chapter.

        (2) A raffle event or door prize drawing conducted by a candidate's committee.

    (d) The members of a candidate's committee may conduct an event under this section without meeting the requirements of this article concerning the membership of a qualified organization. A candidate's committee licensed under this section must remain in good standing with the election division or the county election board having jurisdiction over the committee.

 

  9) A state educational institution (as defined in IC 20-12-0.5-1)

 

  10) For purposes of IC 4-32.2-4-3 (exemptions to licensing requirements), the following are considered “qualified organizations:”

    a. A hospital licensed under IC16-21;

    b. A health facility licensed under IC16-28; and

    c. A psychiatric facility licensed under IC12-25.

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