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Can I offer contests that involve charity donations in Tennessee? What are the requirements?

Yes, you can offer contests that involve charity donations in Tennessee. However, you may need to register with the Division of Business and Charitable Organizations, Charitable Gaming Section, unless exempt from the registration requirements pursuant to Tennessee Code Annotated Section 48-101-502 [1.1].

To prove that event proceeds were used for a charitable purpose, you need to provide documentation such as cancelled checks, signed and attested board minutes, and a copy of the organization’s balance sheets and monthly statements [2.1].

If you plan to conduct bingo games as part of your charity event, you must comply with the rules outlined in TNRR Section 1360-03-03-.15, including that the event must be managed, conducted, and operated only by directors, officers, volunteers, or employees of the charitable organization hosting the event, and no outside parties shall be employed, contracted with, or otherwise utilized to conduct annual bingo gaming events [2.5].

Regarding the conduct of the games, no commission, salary, compensation, reward, recompense, reimbursement of expenses, or gift or other consideration shall be paid directly or indirectly, to any person for conducting or assisting in the conduct of any annual gaming event except as provided for bookkeepers or accountants who assist by rendering their professional services. No tip, gratuity or gift or other consideration shall be given or accepted by any person conducting or assisting in the conduct of an annual gaming event either directly or indirectly [2.7].

All prize payments must be made payable to a specific person, and the maximum prize amount that may be awarded in each individual regular bingo game, progressive jackpot bingo game, or special bingo game is $1,000, whether such prize is awarded in cash and/or cash equivalent goods or services [2.2].

Any violation of the Tennessee Charitable Gaming Implementation Law shall be a basis for disqualification or the imposition of civil penalties. Civil penalties may be assessed for the violation of either civil or criminal provisions of the Act [2.4].

In summary, to offer contests that involve charity donations in Tennessee, you may need to register with the Division of Business and Charitable Organizations, Charitable Gaming Section, and comply with the rules outlined in TNRR Section 1360-03-03-.15 if you plan to conduct bingo games. Additionally, you need to provide documentation to prove that event proceeds were used for a charitable purpose, and you must comply with the rules regarding the conduct of the games and prize payments. Any violation of the Tennessee Charitable Gaming Implementation Law may result in disqualification or civil penalties.

Source(s):
Jurisdiction

Tennessee