Charitable Gambling Fund Reminder
Some relief associations operate a charitable gambling fund that is separate from the relief association’s special and general funds. As a reminder, gambling fund money cannot be used for the benefit of a pension or retirement fund. A relief association, therefore, cannot deposit money from its charitable gambling fund into its special fund.
Sometimes, the OSA receives questions from communities that are finding it difficult to pay required contributions to their relief associations. These communities are looking for creative funding sources, and have inquired about using gambling fund money. A municipality cannot use charitable gambling fund money to make the required or voluntary contribution to its affiliated relief association.
In addition, relief associations are not authorized to use special fund money to reimburse a charitable gambling fund for losses or to pay any assessed fines or penalties. If a relief association’s charitable gambling fund incurs losses or is assessed fines, the losses or fines must be paid using general fund money or a different funding source.
Questions regarding charitable gambling funds can be directed to the Minnesota Gambling Control Board (GCB), at (651) 539-1900. For additional information, visit the GCB website.
Published last in the August 2020 Pension Newsletter