{"data":{"id":"us-ky/krs-238.550","jurisdiction":"us-ky","citation":"KRS 238.550","heading":"Standards for management and accounting of funds -- Reports --","body":"Charitable gaming expenses.\n(1) All adjusted gross receipts from charitable gaming shall be handled only by\nchairpersons, officers, or employees of the licensed charitable organization.\n(2) Except as authorized by subsection (11) of this section, within five (5) business\ndays after the completion of a charitable gaming event or session, all gross receipts\nand adjusted gross receipts shall be deposited into one che cking account devoted\nexclusively to charitable gaming. This checking account shall be designated the\n\"charitable gaming account,\" and the licensed charitable organization shall maintain\nits account at a financial institution located in the Commonwealth of  Kentucky.\nOther funds shall not be deposited or transferred into the charitable gaming account.\n(3) All payments for charitable gaming expenses, payments made for prizes purchased,\nand any charitable donations from charitable gaming receipts shall be made  from\nthe charitable gaming account and the payments or donations shall be made only by\nbona fide officers of the organization by checks having preprinted consecutive\nnumbers and made payable to specific persons or organizations. No check drawn on\nthe charitable gaming account may be made payable to \"cash,\" or \"bearer,\" except\nthat a licensed charitable organization may withdraw start -up funds for a charitable\ngaming event or session from the charitable gaming account by check made payable\nto \"cash\" or \"bea rer,\" if these start -up funds are redeposited into the charitable\ngaming account together with all adjusted gross receipts derived from the particular\nevent or session. Checks shall be imprinted with the words \"charitable gaming\naccount\" and shall contain the organization's license number on the face of each\ncheck. Payments for charitable gaming expenses, prizes purchased, and charitable\ndonations may be made by electronic funds transfer if the payments are made to\nspecific persons or organizations. The corporation may by administrative regulation\nadopt alternative reporting requirements for charitable gaming of limited scope or\nduration, if these requirements are sufficient to ensure accountability for all moneys\nhandled.\n(4) A licensed charitable organizat ion shall expend net receipts exclusively for\npurposes consistent with the charitable, religious, educational, literary, civic,\nfraternal, or patriotic functions or objectives for which the licensed charitable\norganization received and maintains federal tax-exempt status, or consistent with its\nstatus as a local school district, a common school, an institution of higher education,\nor a state college or university. No net receipts shall inure to the private benefit or\nfinancial gain of any individual.\n(5) Accurate records and books shall be maintained by each organization exempt from\nlicensure under KRS 238.535(1) and each licensed charitable organization for a\nperiod of three (3) years. Office staff shall have access to these records at\nreasonable times. Licensed charitable organizations and exempt organizations shall\nmaintain their charitable gaming records at their offices or places of business within\nthe Commonwealth of Kentucky as identified in their license applications or\napplications for exempt status.  An exempt organization shall submit a yearly\nfinancial report in accordance with KRS 238.535(2), and failure to file this report\nshall constitute grounds for revocation of the organization's exempt status.\n(6) All licensed charitable organizations that have annual gross receipts of two hundred\nthousand dollars ($200,000) or less and do not have a weekly bingo session shall\nreport to the office annually at the time and on a form established in administrative\nregulations promulgated by the corporation.\n(7) All other licensed charitable organizations shall submit reports to the office at least\nquarterly at the time and on a form established in administrative regulations\npromulgated by the corporation.\n(8) Failure by a licensed charitable organization to file r eports required under this\nchapter shall constitute grounds for revocation of the organization's license or\ndenial of the organization's application to renew its license in accordance with KRS\n238.560(4). Reports filed by a licensed charitable organization  shall include but\nshall not be limited to the following information:\n(a) All gross receipts received from charitable gaming for the reporting period,\nclassified by type of gaming activity;\n(b) The names and addresses of all persons who are winners of priz es having a\nfair market value of six hundred dollars ($600) or more;\n(c) All expenses paid and the names and addresses of all persons to whom\nexpenses were paid;\n(d) All net receipts re tained and the names and addresses of all charitable\nendeavors that received money from the net receipts; and\n(e) Any other information the office deems appropriate.\n(9) A licensed charitable organization shall not incur charitable gaming expenses,\nexcept as provided in this chapter. A licensed charitable organization shall not be\npermitted to expend amounts in excess of prevailing market rates for the following\ncharitable gaming expenses:\n(a) Charitable gaming supplies and equipment;\n(b) Rent;\n(c) Utilities;\n(d) Insurance;\n(e) Advertising;\n(f) Janitorial services;\n(g) Bookkeeping and accounting services;\n(h) Security services;\n(i) Membership dues for its participation in any charitable gaming trade\norganization; and\n(j) Any other expenses the corporation ma y determine by administrative\nregulation to be legitimate.\n(10) A licensed charitable organization shall not expend receipts from charitable gaming\nactivities nor incur expenses to form, maintain, or operate as a labor organization.\n(11) For the purposes o f deposits under subsection (2) of this section, a licensed\ncharitable organization conducting charitable gaming events or sessions shall only\nbe required to deposit its gross receipts and adjusted gross receipts one (1) time per\nweek if the following conditions are met:\n(a) The charitable gaming involves only games using charity game tickets;\n(b) The charitable gaming is not part of a charity fundraising event; and\n(c) The licensed charitable organization's deposits of gross receipts and adjusted\ngross rec eipts from charitable gaming total less than two thousand five\nhundred dollars ($2,500) in the week prior to the deposit.","path":["KRS Chapter 238"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58132","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:51Z","sha256":"c4844bb04cabaca0fa04ff4be606aa4f84fb34dd25ad482e679043b427110d07","source_id":"us-ky","stale":false,"prev":"us-ky/krs-238.547","next":"us-ky/krs-238.555"},"notice":"GroundRules: Original legal text. Not legal advice."}