Will Your Charity Get Taxed?
Charitable bingo operators can increase the amount of money they have for charitable purposes. Depending on where you operate, this could mean tens of thousands of extra money for your charity.
For decades, some cities and counties in Texas have received money from the state. The money comes from a 5 percent state fee imposed on bingo prizes of more than $5. In 2018, 56 Texas counties and 99 municipalities received roughly $11 million from the state fee.
Now, a new state law (H.B. 914 by Rep. Senfronia Thompson) requires cities and counties to vote on whether they will impose the fee going forward.
They must hold the vote before November 1. If they don’t, then charities keep 2.5 percent of prizes awarded. But, if local governments do vote to impose this fee, then they just voted to tax your charity.
“This is a chance pump millions into charities that rely on bingo for revenue,” emphasizes Trace Smith, TCA chairman. “There’s a lot money at stake, and charities need to take action."
If you’ve not talked with other charities in your community, reach out now. It could mean more money for your charity. More importantly, it could help those you serve.
To find out if your city or county must vote, click here to download a spreadsheet list.
2019 Capitol Day
TCA members made the most of their time at the Texas Capitol in early April. They visited all 181 House and Senate members’ offices to promote charitable bingo, and to urge members to support our legislative priorities. Just a couple of weeks later, the House passed H.B. 914 by Rep. Senfronia Thompson and H.B. 1186 by Rep. John Kuempel – two key champions for the game. The work continues as we push for Senate approval and signed bills, hopefully, by Governor Abbott.
#texlege – Bingo Day 2019
Tuesday, April 9th, Texas Capitol in Austin
Join other TCA members for a fun day of advocacy on behalf of charitable bingo.
In 2017, thanks to the efforts of TCA members, new laws were passed that save more than $4 million annually for charities that use bingo to generate revenue. One successful bill eliminated license fees for charity operators. Another one eliminated state and local fees on prizes of $5 or less. Those to laws alone put millions back to work in local communities all across Texas.
This year, TCA and others are working to pass new laws that will help make the game more fun, increase attendance, restrict illegal game rooms.
Take a stand. Help make the game better. Better for charities. Better for customers. Better for Texas.
Year-Round Economic Gift
“Bingo is a year-round economic gift to Texas,” says Jon Hockenyos, president of TXP, Inc. Texas Charity Advocates asked TXP, an economic analysis and public policy firm, to measure the total economic impact of charitable bingo on the Texas economy. The key findings show:
$462.8 million in total economic impact
$258.1 million in value added economic impact
$110.9 million labor income
2961 direct and indirect employment
Other key stats include:
$590.5 million prizes to players
$33.9 million net proceeds to charities
$30.4 million fees to state/local governments
To download the full study click “The Economic Impact of Charitable Bingo in Texas.”
Texans helping Texans
When Amarillo ISD counselor Rozee Hernandez needs help getting a pair of eye glasses or a doctor’s appointment for one of her students, she knows who to call – The Family Care Foundation.
For more than 20 years, the Foundation has helped young and old alike in the Texas Panhandle get the healthcare they need. A big chunk of their money to help people in the community comes from money generated by charitable bingo. They are licensed to operate bingo at Lawndale Bingo.
“Bingo helps our kids and I didn’t even know that’s where the money came from,” says Rozee. “But, I’m grateful to the Family Care Foundation for making sure it was there.”