Lawful Purpose Expenditures (LPE)

Organizations may expend their charitable gambling funds for allowable expenses or for any of 26 specifically defined lawful purposes. If a proposed expenditure is not an allowable expenses and does not meet the definition of any of the 26 lawful purposes, the expenditure is an illegal use of charitable gambling funds.

LPE Code Summary

This chart summarizes the 26 types of lawful purpose expenditures and the codes to use when reporting them.

LPE Codes 1-6

Includes a detailed description of lawful purpose expenditure (LPE) codes 1 through 6.

LPE Codes 7-12

Includes a detailed description of lawful purpose expenditure (LPE) codes 7 through 12.

LPE Codes 13-19

Includes a detailed description of lawful purpose expenditure (LPE) codes 13 through 19.

LPE Codes 20-26

Includes a detailed description of lawful purpose expenditure (LPE) codes 20 through 26.

Publicizing LPE Activities

An explanation of the types of advertising that may qualify as a lawful purpose expenditure.

Expenditures Not Allowed

Notwithstanding codes 1-26, if an expenditure is on this list, it's not allowed.

Lawful Purpose Rating

Each organizations is evaluated anually to determine a rating based on the percentage of net receipts it spent on lawful purpose expenditures.

LPE Reporting and Request Forms

A listing of the forms used to report lawful purpose expenditures and to request GCB approval of potential lawful purpose expenditures.