Minnesota Gambling Permit
Charities and charitable trusts that incorporate in Minnesota do so under the Minnesota Nonprofit Corporation Act, Minn. Stat. ch. 317A, or, less commonly, as a nonprofit limited liability company.(73) A summary of the Nonprofit Corporation Act is beyond the scope of this guide, but Minnesota nonprofits should be aware of certain key statutes in the Act, including the following:
- The length of time a director may serve on a nonprofit’s board may not exceed ten years without the person being elected or appointed to a new term. There is no limit on how many terms a director may serve on a board.(74)
- Nonprofit board members have various fiduciary duties imposed on them as a director of the nonprofit, including the duties of care, loyalty, obedience, and to act in the best interests of the organization, among others.(75)
- Nonprofit officers, or those exercising the functions of officers, likewise have various fiduciary duties imposed on them.(76)
- A nonprofit must satisfy certain criteria in order to properly transact business with a related party.(77)
- A nonprofit may not lend money to a director, officer, or employee of the organization (or a related organization) unless the board of directors reasonably expects the loan to benefit the nonprofit, as opposed to the recipient of the loan.(78)
- A nonprofit is required to maintain complete and accurate books and records regarding its operations and affairs, including its articles and bylaws, accounting records, voting agreements, and meeting minutes.(79)
Minnesota nonprofits should review the entirety of chapter 317A and consult with a private attorney to ensure their compliance with these laws. This Office has also prepared a brochure entitled 'Guide for Board Members: Fiduciary Duties of Directors of Charitable Organizations.' It discusses in more detail the roles and responsibilities of board members.
Chapter 340A and Chapter 299L of Minnesota statutes require that applications for alcohol and gambling device licensure be completed on a form prescribed by the Commissioner of Minnesota Department of Public Safety and certain minimum information may be required. GAMBLING LAWS IN MINNESOTA In Minnesota, legal forms of gambling include lotteries, poker, casino gambling, pari-mutuel wagering on horses and dogs, skilled based tournaments, bingo, raffles, paddlewheel, tip board, and charitable gambling.
The requirements imposed on nonprofits by statutes administered by the Minnesota Secretary of State and the Minnesota Gambling Control Board (for nonprofits that engage in charitable gambling) are not discussed in this guide. For more information on these matters, please contact the Minnesota Secretary of State, Retirement Systems of Minnesota Building, 60 Empire Drive, Suite 100, St. Paul, MN 55103, or at (651) 296-2803 or (877) 551-6767. For information regarding charitable gambling, please contact the Minnesota Gambling Control Board, 1711 West County Road B, Suite 300 South, Roseville, MN 55113, or at (651) 539-1900.
Exempt/Excluded Permit for Fundraising Events
COVID-19 Update for Exempt Activities (3/17/20)
- If holding raffle drawing as originally scheduled, you must still follow all lawful raffle conduct requirements plus any health advisory requirements.
- If delaying drawing date or moving drawing location, please email your Licensing Specialist with your permit number, location, and original date of your postponed activity. Publicize the delay of the raffle so people who may have purchased raffle tickets understand the reason for the delay. Your organization will have up to one year from the original date of the permit to reschedule your postponed activity date. Once the information is complete on when and where your event will take place, send the new information with an appropriate signature from the local unit of government acknowledging the activity, and signed by your CEO, to your Licensing Specialist. A new permit will be reissued to your organization with the updated information.
- If you intend to cancel a raffle, your organization will need to return any money received from sales of raffle tickets.
If you have purchased any other gambling equipment such as pull-tabs, tipboards, or paddlewheels and paddletickets, make sure that this equipment is properly secured with invoices until such time as it will be used. You may also be able to return unused equipment to the licensed distributor your organization purchased the equipment from.
Minnesota Gambling Permit Application
Please direct any questions to your Licensing Specialist via email. This will ensure a quicker response than a telephone call at this time.
END OF UPDATE
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The following information pertains to registered nonprofit organizations seeking to conduct bingo, raffles, and other forms of lawful gambling by excluded or exempt permit as allowed by Minnesota law.
You will need to determine for the calendar year:
Minnesota Gambling Permit
- what type of gambling you will be conducting,
- how many events will be conducted (for raffles, the event date is the drawing date), and
- the estimated total market value of all donated and purchased prizes to be awarded.
State Of Minnesota Gambling Permits
An organization may not conduct both exempt and excluded activity in the same calendar year.
Mn Gambling Raffle Permit
Forms and information for the conduct of raffles, bingo, pull-tabs, tipboards, and paddlewheels.