Virginia Administrative Code › Title 11 - GAMING › Agency 20 - DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES, CHARITABLE GAMING › Chapter 20 - CHARITABLE GAMING REGULATIONS › Part II - Charitable Gaming Organizations › Article 3 - Bank Accounts, Recordkeeping, Financial Reporting, Audits, Fees › Section 11VAC20-20-110 - Use of proceeds

Current through Register Vol. 40, No. 24, July 15, 2024
A. All
					 payments by an organization intended as use of proceeds, except for payments
					 made from electronic gaming receipts, must be made by check written from the
					 organization's charitable gaming account or a bank account authorized pursuant
					 to 11VAC20-20-80 A.
B. All payments by an organization intended
					 as use of proceeds that are made from electronic gaming receipts must be made
					 by check or electronic funds transfer from the organization's charitable gaming
					 account or a bank account authorized pursuant to
					 11VAC20-20-80 A.
C. Use of proceeds payments may be made for
					 scholarship funds or for religious, charitable, educational, or community
					 purposes. In addition, an organization may obtain department approval to
					 establish a special fund account or an irrevocable trust fund for special
					 circumstances. Transfers to such an account or an irrevocable trust fund from
					 the organization's charitable gaming account may be included as a use of
					 proceeds if the payment is authorized by the organization's board of directors.
No payments made to such a special fund account shall be
						withdrawn for other than the specified purpose, unless prior notification is
						made to the department.
D. 
					 Expenditures of charitable gaming funds for social or recreational activities
					 or for events, activities, or programs that are open primarily to an
					 organization's members and their families shall not qualify as use of proceeds
					 unless substantial benefit to the community is demonstrated.
E.  Payments made to or on behalf of
					 indigent, sick, or deceased members or their immediate families shall be
					 allowed as use of proceeds provided they are approved by the organization's
					 board of directors and the need is documented.
F.  Payments made directly for the benefit of an individual
					 member, member of an individual member's family, or person residing in an
					 individual member's household shall not be allowed as a use of proceeds unless
					 authorized by the Charitable Gaming Law or regulations adopted pursuant
					 thereto.
G.  Use of proceeds
					 payments by an organization shall not be made for any activity that is not
					 permitted by federal, state, or local laws or for any activity that attempts to
					 influence or finance directly or indirectly political persons or committees or
					 the election or reelection of any person who is or has been a candidate for
					 public office.
H.  Organizations
					 shall maintain details of all use of proceeds disbursements for a minimum of
					 three years following the close of the fiscal year and shall make this
					 information available to the department upon request.
I.  The department may disallow a use of
					 proceeds payment to be counted against the minimum percentage referred to in
					 11VAC20-20-20 D. If any payment
					 claimed as use of proceeds is subsequently disallowed, an organization may be
					 allowed additional time as specified by the department to meet minimum use of
					 proceeds requirements.
Statutory Authority: § 18.2-340.15 of the Code of
						  Virginia.