Allowable Expenses
Definition and General Information
An allowable expense is the percentage of the total cost of any good, service, or other item that is directly related to the conduct of charitable (lawful) gambling.
Accounting Services and Annual Audit
The costs of accounting services related to the conduct of charitable gambling and the annual audit are allowable expenses.
Advertising
Only the portion of an advertisement that is directly related to charitable gambling qualifies as an allowable expense.
Compensation and Payroll Taxes
This section includes information on the rate of pay and benefits, "shared employees", restrictions on who may be compensated, and compensation records, payment, and reporting.
Equipment and Repairs
Examples of the purchase, lease, or repair of office equipment, gambling equipment, and gambling-related equipment are bingo balls, bingo hard cards, etc.
Investigation Fees and G.M. Bond
Examples of allowable expenses for fees and bond include city or county investigation fee, filing fee, cost of bond.
Gambling Product
Gambling product and sales tax includes electronic games, paper pull-tab games, bingo paper, etc.
Theft and Liability Insurance
Amounts expended for theft insurance and/or liability insurance may be allowed.
Miscellaneous Expenses
Examples of miscellaneous services and supplies include bank service charges, help wanted ad, office supplies, etc.
Penalities and Interest
Tax penalties, interest on taxes, and interest on tax penalties directly related to the conduct of lawful gambling, including payroll taxes, may be reported as an allowable expense.
Rent and Cash Shortages
Rent limits and restrictions for leasing space for the conduct of charitable gambling and reimbursement and reporting of cash shortages.
Utilities
An explanation of utility costs that may be paid from the gambling account as an allowable expense.