Reimbursements, Refunds, and Transfers

Reimbursements and Refunds

Reimbursements are allowed for the following:

1. missing receipts or receipts that the organization failed to deposit into the account;
2. cash shortages;
3. disallowed expenditures or expenses;
4. fund loss denied by the Gambling Control Board;
5. dishonored (bounced) checks or dishonored debit card payments for raffles;
6. rebate or credit refund for an expenditure originally paid out of gambling funds; and
7. profit carryover variance as authorized by the Gambling Control Board or any requirements to bring your organization into compliance with tax law.

Tax refunds—Lawful gambling-related tax refunds must be deposited in the gambling account.

Other income—If an organization sells advertising on raffle tickets or a bingo programs, the money must be deposited into the gambling account. Interest earned on gambling funds is also considered charitable gambling income. Both advertising and interest income are reported as other income on the LG100A.

Transfer of Gambling Funds to General Account

Gambling funds may not be transferred to an organization’s general bank accounts without Gambling Control Board approval.

The only exceptions are:

1. a 501(c)(3) organization or a 501(c)(4) festival organization, for lawful purpose code 1, if the organization has met 70/30 standards for their general account expenditures; or
2. organizations restricted to one electronic fund transaction for the payment of gambling taxes for an organization as a whole may transfer to the general account the amount of taxes related to the conduct of gambling at the time when due and payable.