Bingo Fundraisers for California Nonprofits

Fundraising is a crucial aspect of nonprofit sustainability. While traditional methods like grants and individual donations are essential, creative approaches can significantly boost your organization’s financial health. Bingo nights offer a fun and engaging way to raise funds, but it’s crucial to understand the legal framework governing these events in California. This post will break down the key regulations to ensure your bingo fundraiser is both successful and compliant.

The Legality of Bingo in California

California law generally prohibits for-profit casino-style gambling. However, a limited exception exists for certain charitable purposes, including bingo fundraisers for nonprofits. While this provides a valuable fundraising opportunity, it’s essential to recognize that strict guidelines govern these events.

Defining Bingo: A Closer Look at the Rules

The California Penal Code defines bingo as “a game of chance in which prizes are awarded on the basis of designated numbers or symbols that are marked or covered by the player on a tangible card in the player’s possession and that conform to numbers or symbols, selected at random and announced by a live caller.” Let’s unpack this definition to understand the specific requirements:

• Tangible Cards: The game must use physical, pre-printed cards. Electronic or video displays are prohibited, except for the caller’s drawing and a public display of the drawn numbers (the flashboard).
• Random Selection: Numbers or symbols must be selected randomly and announced by a live caller.
• No Prior Knowledge: Neither players nor operators can know the winning cards in advance.
• Prize Award: Prizes can only be awarded upon presentation of a marked tangible card to an attendant.
• Card Legend: All bingo cards must include the following legend: “For sale or use only in a bingo game authorized under California law and pursuant to local ordinance.”

Key Regulatory Requirements for California Bingo Fundraisers

Beyond the basic definition, several other regulations govern charitable bingo games in California:

• Local Ordinances: State law allows cities and counties to adopt ordinances permitting charitable bingo games. It’s your organization’s responsibility to verify whether your city or county has such an ordinance in place. Contact your local permitting office for details.
• Licensing and Fees: Your city or county may require a license to conduct bingo games. This process could involve background checks and fingerprinting. Be prepared for potential license fees and additional charges for public safety costs.
• Location Restrictions: The bingo game must occur on property owned, leased, or donated to your organization. If the property is donated, it must be regularly used by the organization for its office or charitable purposes, not solely for the bingo event.

Conduct of the Game

• Staffing: The game must be staffed by authorized members of your organization.
• Compensation: No one can receive compensation from the bingo game, except for security personnel.
• Public Access: The game must be open to the public.
• Age Restrictions: No minors (under 18) are allowed to participate.
• Physical Presence: Participants must be physically present during the game (no remote participation).
• Prize Limit: The prize limit is $500 for each bingo game. Local rules may impose additional restrictions, such as limits on the number of games per week or total prize amounts per session.

Accounting and Use of Proceeds 

Profits from bingo games must be kept in a separate fund or account, distinct from other nonprofit assets. These funds must be used exclusively for your organization’s charitable purpose.

Penalties for Non-Compliance

Violating California’s charitable bingo laws is a misdemeanor, carrying potential penalties of a $1,000 fine, six months imprisonment, or both. If anyone (other than security personnel) receives compensation for conducting the bingo game, the penalty can be as high as $10,000. Additionally, any prizes awarded in violation of the regulations are forfeited to the state.

Conclusion

Bingo nights can be a valuable fundraising tool for California nonprofits. However, navigating the legal complexities is essential for a successful and compliant event. By understanding and adhering to the regulations outlined in this post, your organization can host a fun and profitable bingo fundraiser while avoiding potential legal pitfalls. Always consult with your local permitting office and legal counsel to ensure full compliance.