Nonprofits and Permits

This information is for registered nonprofit organizations seeking to conduct bingo, raffles, and other forms of lawful gambling by excluded or exempt permit as allowed by Minnesota law.

For the calendar year, you will need to determine:

• what type of gambling you will be conducting,
• how many events will be conducted (for raffles, the event date is the drawing date), and
• the estimated total market value of all donated and purchased prizes to be awarded.

An organization may not conduct both exempt and excluded activity in the same calendar year.

Forms and information for the conduct of raffles, bingo, pull-tabs, tipboards, and paddlewheels.

How exempt and excluded organizations may and may not spend gambling funds

Nonprofit Requirements

Bingo, paddlewheels, pull-tabs, raffles, and tipboards may be conducted only by registered nonprofit organizations.

There are four types of nonprofit organizations that are eligible to conduct lawful gambling:  fraternal, religious, veteran, and other nonprofit.

You must provide proof of nonprofit status by ONE of the following:

• Certificate of Good Standing for current calendar year. Don't have a copy? Contact the Secretary of State at 651-296-2803.
• IRS income tax exemption 501(c) letter in your organization's name. Don't have a copy? Contact the IRS at 877-829-5500.
• IRS - Affiliate of national, statewide, or international parent nonprofit organization (charter). If your organization falls under a parent organization provide BOTH:

1. an IRS letter showing parent organization is a nonprofit 501(c) with group ruling; and
2. a charter or letter from parent organization recognizing your organization as a subordinate.
   
   

Exempt Permit

A nonprofit organization must submit one application for each gambling activity conducted in a calendar year (consecutive dates at one location go on one application).

LG220 Application for Exempt Permit

An Exempt permit is required when for the calendar year:

• the total value of ALL prizes donated and purchased is less than $50,000, and is
• limited to five days of gambling activity.

LG220A Exempt Permit Financial Report

Within 30 days of the authorized gambling activity, complete and submit the financial report to the Gambling Control Board.

Excluded Permit

A nonprofit organization must submit one application for each gambling activity conducted in a calendar year.

LG240B Application to Conduct Excluded Bingo

• An Excluded Bingo permit is required when for the calendar year:
• bingo will be conducted at four or fewer events, OR
• bingo will be conducted up to 12 consecutive days in conjunction with a county fair, civic celebration, or the Minnesota State Fair.

A nonprofit organization may conduct a raffle without a permit when for the calendar year:

• the total value of ALL prizes donated and purchased is less than $1,500, OR
• if the organization is a 501(c)(3) organization, the total value of ALL prizes donated and purchased for ONE event does not exceed $5,000 (see Minnesota Statutes, section 349.166, Subd. 1(c) ).

Additional requirements:

• The raffle is conducted by the nonprofit organization, not an individual.
• Check with your local city or county for local ordinance or requirements.

Additional Information for Nonprofit Organizations Seeking to Conduct a Raffle

Excluded Raffles

A nonprofit organization that does not hold IRS (501)(c)(3) tax exempt status may conduct raffles without a permit from the Gambling Control Board when, for the calendar year, the total value of ALL prizes awarded for multiple raffles does not exceed $1,500 for the calendar year.

A nonprofit organization that does hold IRS (501)(c)(3) tax exempt status may conduct raffles without a permit from the Gambling Control Board when, for the calendar year:

• the total value of ALL prizes awarded for multiple raffles does not exceed $1,500 for the calendar year;

OR

• the total value of all prizes awarded for ONE raffle does not exceed $5,000. The number of raffle events is ONE per calendar year under this provision.

Any registered nonprofit organization may choose to do multiple small raffles, not to exceed $1,500 in prizes per calendar year, without a Gambling Control Board-issued permit.

Exempt Raffles

Registered nonprofit organizations that wish to exceed the prize limits for Excluded Raffles may apply for an Exempt permit (use form LG220 to apply).  Exempt permits have a limit of $50,000 in prizes for the calendar year.

Organizations may not conduct more than one type of raffle [Excluded, Excluded 501c3, Exempt] in a calendar year.  Contact the local unit of government for additional requirements and restrictions that may apply when conducting raffles in that jurisdiction.

Questions?  Contact the Licensing Specialist assigned to your county.