Rod Grams: “This bill calls for exemption of additional charitable gambling activities from the Federal unrelated business income…”

“This bill calls for exemption of additional charitable gambling activities from the Federal unrelated business income tax (UBIT). As you know, Mr. President, the fundamental difference between charitable gambling and regular gambling is where and how the profit is spent. Most of the income derived from charitable gambling games is spent in communities to fund charitable activities such as the Boy and Girl Scouts, Head Start, and many city and school programs that help local residents and students. In my State alone of Minnesota, more than 1,500 local charities conduct a variety of games such as bingo and pull tabs, and in doing so contribute some $75 million per year to their local communities. Beneficiaries include youth recreation and education, as well as organizations serving the sick and disabled, and many other community programs, as well. My state leads the nation in charitable non-profit gaming, but some 35 other states are involved in similar activities.”