Minnesota Office of the Revisor of Statutes, 700 State Office Building, 100 Rev. Martin Luther King Jr. Registered nonprofit organizations may conduct lawful (charitable) gambling such as bingo, pull-tabs, tip boards, and paddle tickets. Some food or bar establishments lease or grant space to these organizations. These activities are subject to the state's Lawful Gambling Tax (but not sales tax). Charities and charitable trusts that incorporate in Minnesota do so under the Minnesota Nonprofit Corporation Act, Minn. 317A, or, less commonly, as a nonprofit limited liability company. A summary of the Nonprofit Corporation Act is beyond the scope of this guide, but Minnesota nonprofits should be aware of certain key statutes in the Act, including the following.
- You can read specific Minnesota State Lottery chapters and rules on the Minnesota Legislature website by searching the Statutes, Session Laws, and Rules databases. § 349A (State Lottery) Minn. § 349A.08, subd. 8 (Debts Owed) Minn. § 609.651 (State Lottery Fraud).
- Gambling Laws in Minnesota. There are four main categories of legal gambling in the great state of Minnesota. These categories include: charitable gambling (raffles, bingo), the Minnesota Lottery, pari-mutuel betting on horse racing, and tribal gaming. Residents of the state can play card games like poker, but these must be played for small.
Charities and charitable trusts that incorporate in Minnesota do so under the Minnesota Nonprofit Corporation Act, Minn. Stat. ch. 317A, or, less commonly, as a nonprofit limited liability company.(73) A summary of the Nonprofit Corporation Act is beyond the scope of this guide, but Minnesota nonprofits should be aware of certain key statutes in the Act, including the following:
- The length of time a director may serve on a nonprofit's board may not exceed ten years without the person being elected or appointed to a new term. There is no limit on how many terms a director may serve on a board.(74)
- Nonprofit board members have various fiduciary duties imposed on them as a director of the nonprofit, including the duties of care, loyalty, obedience, and to act in the best interests of the organization, among others.(75)
- Nonprofit officers, or those exercising the functions of officers, likewise have various fiduciary duties imposed on them.(76)
- A nonprofit must satisfy certain criteria in order to properly transact business with a related party.(77)
- A nonprofit may not lend money to a director, officer, or employee of the organization (or a related organization) unless the board of directors reasonably expects the loan to benefit the nonprofit, as opposed to the recipient of the loan.(78)
- A nonprofit is required to maintain complete and accurate books and records regarding its operations and affairs, including its articles and bylaws, accounting records, voting agreements, and meeting minutes.(79)
Mn Gambling Statute
Minnesota nonprofits should review the entirety of chapter 317A and consult with a private attorney to ensure their compliance with these laws. This Office has also prepared a brochure entitled 'Guide for Board Members: Fiduciary Duties of Directors of Charitable Organizations.' It discusses in more detail the roles and responsibilities of board members.
Minnesota Gambling Statutes
The requirements imposed on nonprofits by statutes administered by the Minnesota Secretary of State and the Minnesota Gambling Control Board (for nonprofits that engage in charitable gambling) are not discussed in this guide. For more information on these matters, please contact the Minnesota Secretary of State, Retirement Systems of Minnesota Building, 60 Empire Drive, Suite 100, St. Paul, MN 55103, or at (651) 296-2803 or (877) 551-6767. For information regarding charitable gambling, please contact the Minnesota Gambling Control Board, 1711 West County Road B, Suite 300 South, Roseville, MN 55113, or at (651) 539-1900.
