316 Neb. Admin. Code, 35, § 401

Current through September 17, 2024
Section 316-35-401 - LAWFUL PURPOSE
401.01 A licensed or previously licensed organization shall spend its lottery and raffle profit, as defined in section 9-414 of the Nebraska Lottery and Raffle Act, solely for lawful purposes. Expenditure of monies for a lawful purpose shall generally mean charitable or community betterment purposes.
401.01A Charitable or community betterment purposes shall include but not be limited to the following:
401.01A(1) Enhancing the opportunity of individuals for religious advancement, such as offering religious programs, conducting religious activities, and/or operating and maintaining a church, church school, or its facilities.
401.01A(2) Providing for educational advancement, such as donating to the operating fund of a school or establishing or contributing to a scholarship fund.
401.01A(3) Relieving or protecting individuals from disease, suffering, or distress, such as purchasing food or clothing for the needy or helping to provide medical care for individuals in need.
401.01A(4) Contributing to the physical well-being of individuals, such as donations to foster athletic activities. Contributions to promote amateur athletics may be made in the following manners:
401.01A(4)(a) Donations directly to a city, village, or county which sponsors amateur athletics or maintains athletic facilities;
401.01A(4)(b) Donations to organizations or associations founded for the purpose of promoting amateur sports through the sponsorship of leagues or other amateur sports competition; or
401.01A(4)(c) Donations to organizations recognized by the Internal Revenue Service as proper recipients for tax deductible contributions which sponsor athletics, such as Little League Baseball, Inc., or educational institutions which conduct athletic activities.
401.01A(5) Assisting individuals in establishing themselves as worthy and useful citizens by providing educational or business opportunities such as donations to training programs designed to provide individuals with job skills.
401.01A(6) Providing individuals with opportunities to contribute to the betterment of the community, such as sponsoring park cleanup or beautification projects.
401.01A(7) Increasing the comprehension and devotion to the principles upon which this nation was founded, such as sponsoring civic events to make individuals more aware of the history of the United States, the state of Nebraska, or other civic institutions or principles.
401.01A(8) Initiating, performing, or fostering worthy public works or enabling or furthering the erection or maintenance of public structures such as contributing to a county, city, or village building fund or donations to fund parks or recreation areas.
401.01A(9) Lessening the burdens borne by government or voluntarily supporting, augmenting, or supplementing services which government would normally render to the people such as paying for housing, food, or medical services for needy people, contributing to a local police or fire department or contributing to the general fund of a village, city, or county.
401.02 In addition, a licensed or previously licensed organization may spend its profit derived from a lottery or raffle for any activity which benefits and is conducted by the organization. This shall include any charitable, benevolent, humane, religious, philanthropic, recreational, social, educational, civic, or fraternal activities conducted by the organization for the benefit of its members as a whole. The organizations identified above may spend their proceeds in a broader manner than those organizations which do not have this status. For instance, they may spend proceeds derived from a lottery or raffle to provide social activities for the members, to retire a debt of the organization, or to make capital improvements to the organization's meeting hall. Lottery or raffle proceeds spent in this manner must be spent to benefit the membership as a whole and not any one individual member, except that nothing in this section shall prohibit the funding of a scholarship, medical assistance, or disaster relief to individuals in need.
401.02 Proceeds derived from the conduct of a lottery or raffle shall not be used for any political activity such as lobbying, or participating in or contributing to any political campaign on behalf of an elected official or person who is or has been a candidate for public office.

316 Neb. Admin. Code, 35, § 401