This legal document pertains to the management control system for charitable or nonprofit licensees assigned to Groups III, IV, and V. The licensees must develop and implement a management control system that is overseen by an independent group of officers or board of directors. The system must include written policies that define responsibilities and authority, affirmative management and accounting controls to protect funds and assets obtained from gambling proceeds, and a planning process to set goals for the use of gambling proceeds.

According to the Washington Administrative Code, charitable or nonprofit licensees engaged in gambling activities must keep all funds generated from gambling separate from their general funds. They are required to maintain a separate gambling receipts account in a recognized Washington state bank, mutual savings bank, or credit union. Only gambling receipts should be deposited into this account. Licensees may also deposit receipts from nongambling activities operated in conjunction with bingo games into the gambling receipts account if detailed receipting records are maintained.

Bona fide charitable or nonprofit organizations that conduct only fund-raising events or members only raffles and have no other gambling licenses are exempt from having a separate gambling receipts account, but they must: (1) Make no expenditures, other than for prizes, until the receipts have been deposited; (2) Deposit all net gambling receipts within two banking days; and (3) Keep the validated deposit receipt with their gambling records. [Statutory Authority: RCW 9.

(1) Charitable or nonprofit organizations must safeguard and prevent misuse or misappropriation of all assets, including items purchased, or donated, to use as prizes for gambling activities. (2) Licensees must maintain an inventory control record for each item purchased or donated to use as prizes for gambling activities in the format we require. [Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), 230-07-105, filed 4/24/07, effective 1/1/08.]

(1) We prohibit basing contracts for prize insurance on a percentage of the gambling activity. (2) We allow prize insurance based on a flat fee or monthly fee. [Statutory Authority: RCW 9.46.070. WSR 07-21-116 (Order 617), 230-07-106, filed 10/22/07, effective 1/1/08.]

This legal document, found in the Washington Administrative Code under the Gambling Commission’s Charitable and nonprofit rules, outlines the financial statement requirements for certain licensees. In addition to the information required in WAC 230-07-145, charitable or nonprofit licensees in Groups III, IV, V, and electronic raffle licensees must submit complete financial statements prepared in accordance with generally accepted accounting principles (GAAP). Licensees in Groups IV and V must have the financial statements prepared by an independent certified public accountant.

This document governs the annual activity reporting requirements for licensees of raffles, enhanced raffles, amusement games, Class A, B, or C bingo, or combination licenses. The licensees must submit an annual report of all their activities in the required format. The report must be submitted to the office of the Gambling Commission no later than thirty days following the expiration of their license(s). If the licensees report annually, they must submit an activity report from the beginning of their license year through June 30, 2018, by July 30, 2018.

Licensees may only hold fund-raising events (FREs) to raise funds for organizational purposes. Licensees must operate the FRE with a profit motive. A ‘profit motive’ means a gambling activity conducted for purposes of obtaining funds for a charitable or nonprofit organization’s programs. FRE licensees must make a good faith effort to ensure that the expenses paid for all phases of the FRE are less than the total gross receipts received. [Statutory Authority: RCW 9.

Licensees must develop house rules to govern the scope and manner of all gambling activities they will conduct during the FRE and prominently post these rules in the area where they will conduct the FRE. At a minimum, these rules must include: (1) Game rules; and (2) Wager limits; and (3) Payout restrictions; and (4) That tipping is prohibited. [Statutory Authority: RCW 9.46.070. WSR 08-21-087 (Order 633), 230-09-020, filed 10/14/08, effective 1/1/09; WSR 06-22-051 (Order 604), 230-09-020, filed 10/27/06, effective 1/1/08.

(1) Wager limits must not exceed ten dollars. However, raffle wagers must not exceed the limits in RCW 9.46.0277; and (2) There are no limits on wagers made using scrip or poker tournament chips. [Statutory Authority: RCW 9.46.070. WSR 08-21-087 (Order 633), 230-09-022, filed 10/14/08, effective 1/1/09.]