Allied Charities of Minnesota

News

  • 21 May 2020 09:50 | Allen Lund (Administrator)

    Members,


    Yesterday Governor Walz announced Stay Safe MN Phase 2. On June 1 Restaurants and Bars are allowed to reopen out of doors only. Six Feet of distance must be maintained, not to exceed fifty customers. Reservations are required. Masks are required for workers, strongly suggested for customers.


    Please see the attached from the state.


    There was no guidance included in regards to opening back up charitable gaming. We have asked the GCB for direction and we are told it will be forthcoming. As soon as it is available it will be sent out.

    COVID_19_business_plan_template_services.pdf

    employer_preparedness_plan_requirements_checklist.pdf

    restaurant-bar-industry-guidance-ACC_tcm1045-432897.pdf

  • 18 May 2020 10:09 | Allen Lund (Administrator)

    Gambling Tax Payment Grace Period  

    The Minnesota Department of Revenue is offering an extension for Lawful Gambling Tax payments, upon request, for April payments originally due on Wednesday, May 20, 2020 if needed due to COVID-19. If an extension is requested, organizations will have until June 22, 2020 to make their payment. 

    Organizations that would like to request an extension must do so by May 27, 2020. Organizations can request the extension by email, fax, or secure message in e-Services. The request should include the organization’s name, address, federal and state tax ID numbers, license number, and the month for which they are requesting an extension. 

    Organizations that previously requested an extension for their February and March payments, originally due in March and April, now have until June 22, 2020 to make those payments.  

    Organizations should still file their returns by the original due date if possible. For taxpayers who cannot do so, we will allow a filing extension if requested. 

    We ask that you pay your tax liability on the original due date unless you are financially unable to make the payments. In addition, if needed, you may ask us to cancel or reduce penalties, additional tax, and interest for late filing or payment if you have a reasonable cause such as being negatively affected by the COVID-19 emergency. You may request this relief after we notify you of a penalty. See Abatement Information for Businesses.  

    Contact: 
    lawfulgambling.taxes@state.mn.us 
    651-297-1772  


  • 15 May 2020 08:31 | Allen Lund (Administrator)

    Members,

    Yesterday the Gambling Control Board posted on its website a warning to gambling organizations (see below).  Despite some local jurisdictions’ plans to open bars and restaurants before the expiration of the Governor’s Stay-at-Home order on June 1, 2020, any organization that conducts gambling at one of those sites prior to the expiration of the Governor’s order runs the risk of losing its license.  If your organization experiences pressure from a lessor to open prematurely, the GCB suggests you contact your gambling specialist.

     

    ACM has been receiving a number of questions from organizations on how to conduct gambling activities starting June 1, 2020.  Some charities have told us that lessors are asking for bingo, meat raffles and other forms of gambling as soon as the bars and restaurants are allowed to open.  Please remember that the Governor has not yet detailed his plans for the opening of bars and restaurants and that his previous plans have been a ‘turn the dial” approach.  It is possible that the next Executive Order will impose some restrictions and limitations on bar and restaurant operations, which could make certain gambling activities, at least for a time, difficult and/or not profitable.  Until the Governor releases a reopening plan for bars and restaurants, it will be very difficult for any organization to promise or even plan for any particular gambling activity.

     

    More importantly, the guidance issued today by the GCB suggests that any gambling activity conducted in violation of an Executive Order, and this will include in violation of any restrictions or limitations contained within that Order, may result in disciplinary action against your organization, up to and including license revocation.

    Emergency Executive Order 20-56 is attached.

    May 14, 2020

    Yesterday Governor Walz signed Executive Order 20-56 extending the COVID-19 peacetime emergency an additional 30 days.  This ensures that executive orders already in place remain in effect and that we continue to have the flexibility to respond quickly to COVID-19 needs.  In that same order, the plan is for bars and restaurants to be allowed to reopen starting June 1.

     

    Conforming with that order, even if all other requirements to restart the conduct lawful gambling are in place, any lawful gambling activity conducted at permitted bars or restaurants that violates Executive Order 20-56 will also violate Minnesota Statutes, Section 349.155, subdivision 4, paragraph (a)(8), and may result in a denial, suspension, revocation, refusal to renew a license or premises permit, or censure.

     

    As licensed lawful gambling organizations, if you feel pressure or inappropriate influence from a lessor to violate any statute, rule, or executive order, please contact your assigned Gambling Control Board Specialist.


  • 15 May 2020 08:31 | Allen Lund (Administrator)

    On Wednesday, May 13, 2020 Governor Walz extended the bar/restaurant shutdown until June 1. Safety plans will need to be in place. No mention of whether capacity or other restrictions will be in effect. ACM has tried to support the decisions of both state and national leaders during this crisis. As we have said, there will plenty of time to critique later on. The only thing that we really know is that the longer the shutdown goes on more bars, restaurants and licensed gaming charities will not be able to survive.

    Instructions for attending the Monday, May 18 GCB meeting below.

    To Attend the 5/18/20 Board Meeting via WebEx:  Prior to the 10:00 meeting start time, call 1-855-282-6330.  At the prompt, enter meeting ID 962 390 018, followed by the # key.  You may be asked for extra information, but you may hit the # key again and you will be taken to the meeting.

     

    To Participate in Public Comment at the 5/18/20 Board Meeting:  If you wish to provide public comment, please submit by 4:30 p.m. on May 14, 2020, your name, who you represent, and your comment to gcb.webmaster@state.mn.us.

     

    I read in the paper on Tuesday (Star Tribune May 12, 2020 Section B) about the plight of the 9,000 non profits in Minnesota during the COVID crisis. As a group Minnesota non profits employ 385,000 people, which is 13% of the total Minnesota workforce. Licensed gaming charities employ thousands (was 10,000 a few years ago, not sure how the growth of bar ops has impacted that number). Licensed gaming charities average $7 million a month into our communities and missions through donations, and pay the state on average $8 million a month in taxes. I am not aware of how much the other 7,900 non-profits pay in taxes, but I would hazard a guess that nobody else comes close to paying what we do.

    Our industry has received some unwarranted criticism recently around compensation.  It appears that our critics think nonprofit employees working for charitable gambling organizations do not deserve to be paid a fair wage.  What they don’t say is that the remaining 375,000 people that work for the other 7,900 non profits need to be treated the same. I would go out on limb and say that our average per hourly wage across all employees is well below the average of the other 7,900 non-profits.  It is all about fairness.

    If the state said that anyone working for a non-profit must work for little to no compensation, as they want us to, I could respect that. Charitable gaming organizations make up only 12% of the total number of non profits in Minnesota. Saying that we are the only ones that should work for little to no pay is discriminatory. I have always believed that what was good for the goose was just as good for the gander.


  • 07 May 2020 14:54 | Allen Lund (Administrator)

    Members,

    We have received a number of questions recently from organizations asking how to handle employees who do not want to return to work after the shut-down has ended.  For example, does the employee have a medical reason for not returning to work; is the employee caring for a family member with COVID-19; does the employee lack childcare due to the closure of schools and/or daycare; or is the employee afraid of returning to work because of age or an underlying condition making them more vulnerable to corona virus complications?  As you can see, these types of questions are very fact specific and heavily dependent on state and federal law, some of which has changed in the past 2 months due to the corona virus pandemic. Each of these questions might have a different answer and the consequences to your organization could vary.  As a result, we recommend that you direct these types of questions to a lawyer with knowledge and experience in employment law.

    PPP UPDATE: A PPP loan may only be used for payroll, utilities, mortgage interest and rent.  To be eligible for forgiveness, costs for those permitted uses must be incurred and payments made within the 8 week period following loan disbursement.  Payroll costs must account for 75% of the loan proceeds. So these loans are not good for organizations that have laid off or furloughed employees unless they are all brought back almost immediately upon receipt of the loan money.  Nor are the loans good for groups with high expenses not related to payroll as those costs are limited to 25% of the loan.  Forgiveness is based on gross payroll (less only the employer share of FICA). 

    The link below is to information on PPP on the SBA website. Below also is additional guidance on PPP loans from the GCB.

    https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program

    May 6, 2020

    New Guidance on Paycheck Protections Program (PPP) Loans:  If your organization is a recipient of a federal PPP loan, the funds disbursed to your organization from that loan should not be deposited into your gambling account. Deposit the money into a non-gambling account. Your lender will provide guidance on how to track the funds and may even suggest setting up a separate general (non-gambling) bank account just for this purpose. The amounts expended from PPP funds will not be reported on the monthly lawful gambling reports (GCBreports) at this time. For example, payments for qualifying gambling wages will be made directly from PPP funds to the employee. We anticipate that the most PPP loans will ultimately be forgiven and the organization will not be required to repay the funds they’ve expended.

     

    What if our PPP loan isn’t forgiven?

    Organizations are responsible for consulting with their lender to maintain compliance with PPP requirements. If your organization’s PPP loan is not forgiven due to non-compliance with the guidelines, and you can document that PPP funds were used for qualifying gambling-related expenditures, you may apply to the Gambling Control Board for permission to use gambling funds to repay the federal government for the PPP loan expenditures that met a definition of allowable expense.  In the month in which you were informed that your loan won’t be forgiven, you’d report the expenditures as allowable expenses and add the loan amount to form LG100F, line 15.

     

    What if we’ve received our PPP loan and already paid qualifying expenses out of our gambling account?

    If your organization has already made qualifying payments from your gambling account that were later reimbursed by the federal government to your general account, your organization must reimburse its gambling account for the amount expended.  Report the reimbursement as a negative expense in the month that the reimbursement deposit is made.  Future qualifying expense paid with PPP funds will then be paid directly out of the non-gambling account to the employee or vendor.

     

    What if we’ve already reimbursed our gambling account for qualifying PPP expenses?  Do we need to do anything else?

    No.  If you still have PPP funds left in your general account at this time, begin paying qualifying gambling-related expenses from that general account until the loan amount has been expended.


  • 30 Apr 2020 14:32 | Allen Lund (Administrator)

    The Governor announced today that the stay at home order is extendend until Monday, May 18. This includes restaurants and bars.

  • 27 Apr 2020 09:39 | Allen Lund (Administrator)

    Members,

    Attached are two documents. One is the revised Senate tax bill being introduced that includes relief for charitable gaming. We thank Senator Chamberlain for keeping us in his bill. We understand the financial stress that the state now finds itself in, but take this as a recognition that charities are paying up to seven times what a for profit business pays. If enacted we would still be paying up to six times what a for profit business pays. Helping to keep charities paying into the state coffers makes good business sense for the state.

    The second is a policy bill submitted by the Gambling Control Board to the House Commerce committee that addresses concerns due to the state wide shut down. We appreciate the GCB listening to ACM regarding our concerns and including several of our requests. 

    2020revisedsenatetaxbill04272020.pdf

    gcbcovidpolicybill04272020.pdf


  • 24 Apr 2020 14:07 | Allen Lund (Administrator)

    Members,


    Here is the newly revised treasury rule on the PPP program.  It appears to eliminate gambling as a bar to eligibility. Should open the door to (c)(19)’s in particular, as well as (c)(3) groups. No word on the inclusion of 501-(c)(4)'s organizations. We have asked for them to be included, but no word back on that.

     

    d. Part III.2.b. of the Third PPP Interim Final Rule (85 FR 21747, 21751) is revised to read as follows:
    Are businesses that receive revenue from legal gaming eligible for a PPP Loan? A business that is otherwise eligible for a PPP Loan is not rendered ineligible due to its receipt of legal gaming revenues, and 13 CFR 120.110(g) is inapplicable to PPP loans. Businesses that received illegal gaming revenue remain categorically ineligible. On further consideration, the Administrator, in consultation with the Secretary, believes this approach is more consistent with the policy aim of making PPP loans available to a broad segment of U.S. businesses.



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