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fund raising for non profit

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J

joepar

Guest
Is it legal to use gambling as a form of fund raising for a non profit organization?

from Illinios.
 


L

lawrat

Guest
I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

Below is the applicable statute and below that is the applicable hyperlink.

230 ILCS 30/)

(230 ILCS 30/1)
Sec. 1. This Act shall be known as the "Charitable Games Act".
(Source: P.A. 84-1303.)

(230 ILCS 30/1.1)
Sec. 1.1. Legislative findings and intent. (a) The General Assembly
finds that:
(1) not-for-profit charitable organizations provide important and
necessary services to the people of the State of Illinois with respect
to educational and social services; and
(2) there is a need to provide methods of fund raising to such
not-for-profit organizations so as to enable them to meet their stated
charitable and social purposes.
(b) The General Assembly also finds that:
(1) uniform regulation for the conduct of standardized games of
chance is in the best interests of not-for-profit organizations and the
people of the State of Illinois; and
(2) authorization for such not-for-profit organizations to conduct
charitable games as provided in this Act is in the best interests of and
will benefit the people of the State of Illinois.
(c) It is the purpose and intent of this Act:
(1) to permit not-for-profit organizations to conduct charitable
games only in compliance with the provisions of this Act; and
(2) to reaffirm that gambling in Illinois, for non-charitable
purposes, is not to be allowed.
(Source: P.A. 84-1303.)

(230 ILCS 30/2)
Sec. 2. Definitions. For purposes of this Act, the following
definitions apply:
"Organization": A corporation, agency, partnership, institution,
association, firm or other entity consisting of 2 or more persons joined
by a common interest or purpose.
"Sponsoring organization": A qualified organization that has
obtained a license to conduct a charitable games event in conformance
with the provisions of this Act.
"Qualified organization":
(a) a charitable, religious, fraternal, veterans, labor or
educational organization or institution organized and conducted on a
not-for-profit basis with no personal profit inuring to anyone as a
result of the operation and which is exempt from federal income
taxation under Sections 501(c)(3), 501(c)(4), 501(c)(5), 501(c)(8),
501(c)(10) or 501(c)(19) of the Internal Revenue Code;
(b) a veterans organization as defined in Section 1 of the
"Bingo License and Tax Act", approved July 22, 1971, as amended,
organized and conducted on a not-for-profit basis with no personal
profit inuring to anyone as a result of the operation; or
(c) An auxiliary organization of a veterans organization.
"Fraternal organization": A civic, service or charitable
organization in this State except a college or high school fraternity or
sorority, not for pecuniary profit, which is a branch, lodge or chapter
of a national or State organization and exists for the common business,
brotherhood, or other interest of its members.
"Veterans organization": An organization comprised of members of
which substantially all are individuals who are veterans or spouses,
widows, or widowers of veterans, the primary purpose of which is to
promote the welfare of its members and to provide assistance to the
general public in such a way as to confer a public benefit.
"Labor organization": An organization composed of labor unions or
workers organized with the objective of betterment of the conditions of
those engaged in such pursuit and the development of a higher degree of
efficiency in their respective occupations.
"Department": The Department of Revenue.
"Volunteer": A person recruited by the sponsoring organization who
voluntarily performs services at a charitable games event, including
participation in the management or operation of a game, as defined in
Section 8.
"Person": Any natural individual, a corporation, a partnership, a
limited liability company, an organization as defined in this Section, a
qualified organization, a sponsoring organization, any other licensee
under this Act, or a volunteer.
(Source: P.A. 87-758; 88-669, eff. 11-29-94.)

(230 ILCS 30/3)
Sec. 3. The Department of Revenue shall, upon application therefor
on forms prescribed by such Department, and upon the payment of an
annual fee of $200, and upon a determination by the Department that the
applicant meets all of the qualifications specified in this Section,
issue a charitable games license for the conducting of charitable games
to any of the following:
(i) Any local fraternal mutual benefit organization chartered
at least 40 years before it applies for a license under this Act.
(ii) Any qualified organization organized in Illinois which
operates without profit to its members, which has been in existence
in Illinois continuously for a period of 5 years immediately before
making application for a license and which has had during that 5
year period a bona fide membership engaged in carrying out its
objects. However, the 5 year requirement shall be reduced to 2
years, as applied to a local organization which is affiliated with
and chartered by a national organization which meets the 5 year
requirement. The period of existence specified above shall not apply
to a qualified organization, organized for charitable purpose,
created by a fraternal organization that meets the existence
requirements if the charitable organization has the same officers
and directors as the fraternal organization. Only one charitable
organization created by a branch lodge or chapter of a fraternal
organization may be licensed under this provision.
Each license shall be in effect for one year from its date of
issuance unless suspended or revoked by Department action before that
date. A licensee may hold only one license. Each license must be
applied for at least 30 days prior to the night or nights the licensee
wishes to conduct such games. If a licensee wishes to conduct games at
a location other than the locations originally specified in the license,
the licensee shall notify the Department of the proposed alternate
location at least 60 days before the night on which the licensee wishes
to conduct games at the alternate location.
(Source: P.A. 87-758; 87-1271.)

(230 ILCS 30/4)
Sec. 4. Licensing Restrictions. Licensing for the conducting of
charitable games is subject to the following restrictions:
(1) The license application, when submitted to the Department
of Revenue, must contain a sworn statement attesting to the
not-for-profit character of the prospective licensee organization,
signed by the presiding officer and the secretary of that
organization. The application shall contain the name of the person
in charge of and primarily responsible for the conduct of the
charitable games. The person so designated shall be present on the
premises continuously during charitable games. Any wilful
misstatements contained in such application constitute perjury.
(2) The application for license shall be prepared by the
prospective licensee organization or its duly authorized
representative in accordance with the rules of the Department of
Revenue.
(2.1) The application for a license shall contain a list of
the names, addresses, social security nu
 

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