Nebraska Administrative Code › Topic - REVENUE, DEPARTMENT OF › Title 316 - NEBRASKA DEPARTMENT OF REVENUE › Chapter 35 - CHARITABLE GAMING; ART. 6 COUNTY/CITY LOTTERY › LOTTERY BY PICKLE CARD › Section 316-35-301 - Nonprofit Organizations, Nonprofit Corporations, Volunteer Fire Companies, or Volunteer First - aid, Rescue, Ambulance, or Emergency Squads - Qualification for a License to Conduct a Lottery by the Sale of Pickle Cards

Current through June 17, 2024
301.01 A nonprofit
				  organization or nonprofit corporation holding a certificate of exemption under
				  Internal Revenue Code (IRC) § 501(c) ( 3), (4), (5), (7), (8), (10), or
				  (19), a volunteer fire company, or a volunteer first - aid, rescue, ambulance,
				  or emergency squad (eligible organization) may apply for a license to conduct a
				  lottery by the sale of pickle cards.
301.01A
				  Any eligible organization applying for a license to conduct a lottery by the
				  sales of pickle cards must be incorporated or established in this state. An
				  organization incorporated in a foreign state holding a certificate of authority
				  to conduct affairs, or which has domesticated in Nebraska, does not qualify for
				  a license.
301.01B An eligible
				  organization must have been in existence in this state for five years
				  immediately preceding its application for a license and have had an active,
				  bona fide membership engaged in furthering a lawful purpose during that period.
				  This requirement does not apply to a volunteer fire company, a volunteer first
				  - aid, rescue, ambulance, or emergency squad, or a nonprofit corporation whose
				  primary purpose is to support a volunteer fire company, or a volunteer first -
				  aid, rescue, ambulance, or emergency squad.
301.01C When applying for its initial
				  license, a nonprofit organization or nonprofit corporation holding a
				  certificate of exemption under IRC § 501(c) (3), (4), (5), (7), (8), (10),
				  or (19) (organization) is considered exempt under IRC § 501 if it provides
				  a copy of the exemption ruling or exemption determination letter issued by the
				  Internal Revenue Service (IRS). Subsequent applications to renew an existing
				  license to conduct a lottery by the sale of pickle cards are not required to be
				  accompanied by the proof of exemption unless the circumstances under which the
				  exemption was issued, or the nature of the organization have changed
				  substantially so that the exempt status may no longer be applicable. The
				  Department may specifically request the exemption determination documentation
				  on any subsequent application.
301.01C(1) An
				  organization may be exempt under a group exemption letter issued by the IRS. A
				  group exemption letter is a ruling or determination letter issued to a parent
				  organization or parent corporation (parent), recognizing on a group basis, the
				  exemption under IRC § 501(c) of the subordinate entities on whose behalf
				  the parent has applied for recognition of exemption. A parent is an
				  organization or corporation that has one or more subordinates under its general
				  supervision or control. A subordinate is a chapter, local, post, or unit of a
				  parent (for example, the American Legion, Veterans of Foreign Wars, and
				  Fraternal Order of Eagles). Under these circumstances, a subordinate
				  organization or corporation applying for an initial license must provide the
				  Department with a copy of the group exemption letter issued to the parent or
				  indicate the Group Exemption Number.
301.01C(2) An organization defined in Neb.
				  Rev. Stat. § 21 - 608 which is chartered in Nebraska under a state, grand,
				  supreme, national, or other governing body, may use the charter date of its
				  parent to satisfy the five - year existence requirement.
301.01C(3) This requirement does not apply to
				  a volunteer fire company, or a volunteer first - aid, rescue, ambulance, or
				  emergency squad which is applying for its initial license.