New rules will give Alberta charities more leeway to use gambling proceeds to purchase, build or renovate facilities that provide publicly beneficial space. That’s part of a package of updated policies for charitable groups that hold licences from Alberta Gaming, Liquor and Cannabis (AGLC) to conduct casino events, bingos, lotteries and raffles, set to kick in on April 1.

Charitable groups in Alberta are generally required to pass revenues from gambling exercises directly through to designated beneficiaries, but are allowed to retain a portion of earnings to support their operational functions. The new rules broaden the scope of that allowable spending and increase maximum thresholds for some types of expenditures.

“Alberta’s charitable groups are the backbone of our communities. By giving them greater flexibility in how they use funds raised through licensed charitable gaming, we’re not just cutting red tape; we’re empowering them to continue delivering vital services and support to Albertans,” says Dale Nally, the provincial Minister of Service Alberta and Red Tape Reduction.

Related to facilities, charitable groups will now be able to spend up to $100,000 per calendar year on qualifying renovations or leasehold improvements to rented facilities without seeking AGLC approval, but will still have to submit a project plan to AGLC at least 30 days before that construction begins. Expenditures in excess of $100,000 must have AGLC approval in advance.

Groups can also retain up to $100,000 of their gambling proceeds per year, up to a maximum of $500,000, to put toward the future purchase or construction of a facility, with the condition that the funds must be spent no later than four years after $500,000 is accumulated. Groups that use gambling proceeds to purchase or a build a facility must obtain AGLC approval to refinance or sell the facility. If gambling proceeds have been used to purchase or build a facility, an equivalent portion of the revenue from its sale must be directed to the organization’s direct charitable endeavours.

In all cases, charitable groups that have obtained government grants for capital investment in facilities must fully deplete those funds before dipping into gambling proceeds. To qualify as publicly beneficial space, a facility must:

• be owned or controlled by a recognized charitable group;
• serve as a venue for delivering the organization’s charitable efforts;
• be open to the public at least 50 per cent of the time; and,
• be located in Alberta.

“Alberta’s unique charitable gaming model supports over 23,000 charities in their work every year,” advises Kandace Machado, chief executive officer of AGLC. “The added flexibility in how charitable groups can use their earnings will help them continue to make a real difference for Albertans and communities throughout our province.”