Allied Charities of Minnesota

News

  • 01 Dec 2017 06:17 | Allen Lund (Administrator)

    See the attached pdf for information on how to contact your legislators.

    contactinglegislators12012017.pdf

  • 24 Nov 2017 06:29 | Allen Lund (Administrator)

    Members and Associates,

    I have posted the FY2017 GCB Annual Report and a one page recap of that report on the ACM website www.alliedcharitiesmn.org

    There is only one message that I need you take away from the report and my recap:  When prizes+expenses+taxes+fees (cost of doing business) equal sales (income), charitable gaming will cease to exist. 

    There will be no lengthy internal debates or votes on whether or not to continue operating charitable gaming.  It will be over.  PERIOD.

    Our overall prize payout is now at 83.9% due to all forms combined, but paper tabs are now paying out at 84.6% and will most likely go over 85% in FY2018.  E-tabs are now paying out at 85.7% and will most likely go over 86% in FY2018.  These two forms account for over 93% of our total sales.  Where they go, we go. 

    Our average cost of doing business is now 96.16 cents on every dollar sold: $1.00-83.9 cents prize payout =16.1 cents - 8.06 cents expenses (50.07% of 16.1) = 8.04 cents - 4.2 cents taxes/fees (26% of 16.1) = 3.84 cents to missions.  If we cannot effect any reductions in payout/expenses/taxes/fees our overall cost of doing business will be over 97 cents by 2020, 98 cents by 2022.  Right now we are averaging 3.14 cents to missions on paper tabs and 2.4 cents on e-tabs. 

    By 2020 we will be netting less than 2 cents on both paper and e tabs, less than 1 cent by 2022 is not impossible.  Think about it, we are only 1.84 cents away from making less than two cents on every dollar that we touch.  Any combined increase of 1.85 cents in payout/expenses/taxes/fees will be our undoing.  Last fiscal year those four items combined for just shy of a half cent increase in our cost of doing business. 

    In FY2013 we netted 6.47 cents on every dollar sold.  We have lost 2.63 cents in four fiscal years.  At that rate of decline we will be down to 1.21 cents by the end of FY2021. 

    Last fiscal year we increased our sales by $206 million and netted $1 million for our efforts.  Our cost of doing business on every dollar of that $206 million was 99.5 cents, netting us one half of one cent on every dollar sold. 

    To those of you that derive income from us, we are not out to harm you.  Our only goal is to keep charities contributing to their missions and communities.  If we accomplish that, then by extension and necessity, you will be needed.  But, we need your help in convincing the legislature and Governor that things need to change and change soon.  Act before it is too late for either of us.  I am not crying wolf, I am asking you to face the facts.  My instincts tell me that dropping below 2 cents for missions will be the breaking point for hundreds of organizations.  Do you really want to see if my predictions are correct before you act?  At that time it will be too late. 

    You can say whatever you want about me or Allied Charities, but you cannot ignore the numbers and trends.  With no changes to the current prize payout/expense/tax/fee structure we are on a collision course to zero profit.  When charities are done, everyone connected to us will be too. 

    Al         


    fy2017 11192017.pdf

  • 20 Nov 2017 06:52 | Allen Lund (Administrator)
  • 03 Nov 2017 06:01 | Allen Lund (Administrator)

    New Lawful Gambling Record Retention Fact Sheet

    We recently published a record retention guide for your organization’s barcoded game remnants. Use this resource to:

    • stay on track with record retention
    • know how and when to destroy played game remnants

    See the Record Retention for Barcoded Game Remnants fact sheet on our website.

    Questions?

    If you have questions, contact the Lawful Gambling Tax Unit at 651-297-1772 or lawfulgambling.taxes@state.mn.us.


  • 03 Nov 2017 06:00 | Allen Lund (Administrator)

    Members,

    If you need a reminder of why we do what we do, watch this short video of the Metro Youth Baseball League.  MYB

    Click on the link to an article about the Spring Lake Park Lions and the city of Spring Lake Park requesting funds from the Lions.  Spring Lake Park Lions

    It is encouraging that cities are taking notice of what is going on with charitable gaming and state taxes.  Getting cities to help us work towards getting a state tax structure that allows us to serve our local communities while still paying taxes to the state is an important step. 

    We have never said that we should not pay taxes to the state.  We have said that there needs to be a structure where no charity should be paying more to the state than they have for their community or mission.  We all know that no business would ever put up with what we are paying, yet we continue to put up with our treatment.  I will never be able to over stress that you and your organization do not deserve to be treated as you currently are accepting of.  Your caring and philanthropy is what the state is counting on to keep the status quo. 

    Our train went off the rails with the 2012 stadium bill.  Paying up to 7 times what a business pays is an insult to every member of every charity that pays the 36% rate in a given fiscal year.   Any charity averaging more than 25% in state tax in a fiscal year is most likely paying more to the state than they have for their community and mission.  I look forward with apprehension and foreboding to see how many of us went upside down in FY2017. 

    Record sales, record net profits to the charities (yes, even a dollar more would qualify as a record), record taxes to the state and no mass exodus by charities are hurting our cause.  The message from the state is a resounding “What’s not to like?”  Rising payouts and expenses are coming directly out of our missions dollars.  Our diminishing slice of the pie is not resonating with or generating any action from our elected officials. 

    The stadium fund is taking in roughly $50 million per year and the annual bill for the stadium is $31 million.  Why not give our organizations and our communities relief?  There is more than enough to do so.  Is money laying fallow in a stadium fund really more important than helping those in need in our communities?  I think not. 

    If your organization is not able to make the donations that you once did or are reducing the amount of the donations that you can accommodate, you need to be letting those requesting the donation know why.  You need to tell them that the state is where your funds now go and that they need to contact the Governor, their state senator and state representative for the money.  Getting help from those that benefit from our efforts will be key to our success.

    One thought is to withhold donations until the end of a fiscal year, when a charity would know for certain if there is anything left to donate after all taxes and expenses are paid.  At the top rate a charity can hold a three star rating by only paying taxes to the state.  Only in MN would a charity be able to keep their charitable gaming license by paying taxes.    

    I have said for some time that if the state wanted to fix our tax structure they would have.  They clearly have no imminent intention of doing so.  As a group we need to decide if we are going to give the effort necessary to convince them to do so. 

    See you at convention.  Attached is the current seminar schedule.  There are still hotel rooms available at all hotels with  the exception of the Marriott and the Kelly Inn.  Make sure to tell them that you are with Allied Charities and want the ACM rate.

    Regards,

    Al


  • 18 Oct 2017 09:46 | Allen Lund (Administrator)

    Due to scheduled maintenance, our e-Services system and other online services will be unavailable from 9:30 p.m. on Thursday, November 9 until 11:30 p.m. on Sunday, November 12. This includes the telephone file and pay system. Regular deadlines for filing and paying your taxes still apply. Please plan accordingly. We apologize for the inconvenience.

  • 28 Aug 2017 11:43 | Amanda Horner (Administrator)

    This article was written by Delane Cleveland and originally appeared on CCX media on Aug. 25, 2017. View the original article and video here.

    At many American Legions and bars across Minnesota, the multi-colored assortment of pull tabs, along with the lure of big cash prizes, are an immediate draw. 

    In fact, fiscal year 2017, which ended June 30, was a record year.

    "We increased our sales by $194 million," said Al Lund, executive director of Allied Charities of Minnesota.

    Lund's organization represents all 1,200 of Minnesota's licensed gaming charities. 

    "As I am very fond of saying, we are good people doing great work," Lund said.

    What people may not realize is that examples of charitable gambling are everywhere. The electronic sign in Osseo along County Road 81, for instance, was funded in part, with $10,000 in charitable gambling money.

    "What we have done in this community is outstanding," said Bill Johnson, a member of Osseo's American Legion Post 172.

    Thanks to charitable gambling money, Johnson helped make the electronic sign in Osseo happen -- along with projects related to schools and veterans issues.

    "So we are a true asset to also our fellow veterans, but to our community as a whole," Johnson said.

    But industry experts are concerned because it looks like for the first time that the state will benefit more than the charities. As sales volume increases, so do the taxes.

    "The average charity in Minnesota realized $800 more for their communities and missions, the state realized $8,000 more on each of those charities," Lund said. "So it was basically a 1 to 10 split and we think that's very wrong."

    The reason for the discrepancy is the 2012 stadium bill passed by the state legislature, which changed the way the state taxes charitable gambling. The money raised by the state helps pay for U.S. Bank Stadium. In the meantime, charities take a hit. 

    "What's happening today is our groups are having to turn down more and more donations, or reduce the amount requested," Lund said.

    Now, people in the charitable gambling industry are making pleas to the legislature for a change. 

    "If we as a community say, 'we want this done' they will pay attention to our needs," Johnson said.

    Meanwhile, the Minnesota Gambling Control Board said final numbers for fiscal year 2017 won't be available until late November.

  • 18 Aug 2017 10:52 | Amanda Horner (Administrator)

    This article was produced by Roxanne Elias and originally appeared on KAAL on Aug. 17. View the original story here.

    (ABC 6 News) -- Local organizations are coming together to figure out what the future holds for charitable gaming.

    Rod Toomey with the Rochester Eagles Club said all your money may not being going where you think, and he wants to see that change.

    "I don't think a lot of people really understand the significant amount of dollars that are going to the state," said Toomey.

    Right now, the way things work is the more money that's made, the higher the revenue is taxed.

    With expenses, organizations may collect as little as 28% of each dollar.

    Joe Brown, Commander at Rochester's American Legion Post 92, also said it's taking away from those who think they are doing good.

    "Our combined receipt taxes and everything that, throughout the year, what we send up north is, is more than actually what we give to our, our charities."

    "Actually the community is the one that comes in here and buys the pull tabs, come in for the bingo. It's their money you know and they would probably, they would rather like our patrols keep the money here,” added Brown.

    And that's why on Thursday, both organizations met with the Allied Charities of Minnesota to discuss what needs to be done next.

    "The hard part for me is when we're paying the state before we have money to give out to charities and that's, that's I think why people pull tabs and play bingo is they know it's for a worthy cause," said Toomey.

    Both organizations say they just want the state to update the way the system works, so the community can have peace of mind that their funds are going to the right place.

    "In the end, it just leaves more money that we as charities can give away," said Toomey.

    Both organizations also say they don't mind paying the taxes but they would like for the amount to be lower to keep more money going to charity.



  • 15 Aug 2017 10:42 | Amanda Horner (Administrator)

    This article was written by Haydee Clotter and originally appeared on Lakeland Public Television on Aug. 15, 2017. View the original article here.

    $1.7 billion: that’s how much Minnesotans spent on gambling last year. Allied Charities of Minnesota (ACM) represents the 1,200 licensed charitable organizations in the state. They invited local organizations to the Bemidji Eagles Club to examine the future of charitable gaming.

    “Just to see what’s on their minds, talk about the issues we feel are important and just to get a sense on what we need to be working for, especially looking towards the 2018 legislative session,” said Allied Charities of Minnesota Executive Director Allen Lund.

    ACM is holding 12 sessions around the state where they spark a conversation focusing on the what local charities are dealing with. There seems to be a growing consensus on one issue.

    “Taxes and the increase that is going to the state, which turns into less money for us for our missions and our communities,” said Lund.

    Lund says this would indicate that charitable organizations are becoming tax collectors for the state and that’s what ACM wants to avoid. Nothing is set in stone and must go through the state legislature first, and there’s something you can do about it now.

    “Contact our legislators and let them know how important this is and the issues that confront the local communities,” said Lund. “The needs in our local communities are growing and we want to be able to meet those. We believe the people that raise the money know best where that money should go.”

    For the 2016 fiscal year, pull tabs were pretty popular and brought in nearly $1.5 billion in sales. The proceeds from lawful gambling are used for anything ranging from youth activities to the support of non-licensed veterans’ clubs.

    “Our business grew by 1-2 percent, while the state’s business, their take, grew from high teens to low twenties,” said Lund. “So on an increase of $194 million in sales, we netted $1 million. That’s a grave concern to us.”

    It’s a requirement for a majority of organizations to spend at least 30 percent of their net profits on lawful purposes and that includes taxes.



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