Key charities say they’re pleased with revised raffle bill
NASHVILLE (AP) — Two Tennessee charities leading the push for nonprofit organizations to raise money through games of chance said Thursday they’re satisfied with changes this week to a bill that would allow the events.
Officials with St. Jude Children’s Research Hospital in Memphis and the Boys and Girls Clubs of Greater Knoxville both have watched closely as state lawmakers developed the bill authorizing charity raffles.
St. Jude’s hopes to expand its “dream home” fund-raising raffle to Tennessee — currently it’s conducted in 17 other states — while the Boys and Girls Clubs want to resume their annual rubber duck race, which raised about $150,000 a year until a state attorney general’s opinion put a stop to it in 1997.
This week, lawmakers — worried the legislation could open the state to unscrupulous for-profit operators — decided to revamp the bill so that charities would have to run the events themselves. They also decided that all proceeds, except for specific administrative costs, must go to the charitable purpose.
The actions came after several lawmakers and Gov. Phil Bredesen expressed worry that professional operators could take advantage of the law — as they did a similar one almost two decades ago — to run bingo games that were highly profitable for them but did little for the charities the games were supposed to benefit.
The House Finance Committee approved the retooled bill Thursday, sending it on for consideration by the full chamber sometime next week. Debate on the measure is expected to begin Monday in the Senate.
Leaders of both charitable groups said Thursday they support efforts by lawmakers to increase safeguards against possible mischief and are willing to abide by any regulations imposed to accomplish that goal.
“We’re extremely pleased (they) have taken time in ensuring they’re doing it as right as they know how,” said John D. Lee, president and chief executive of the Boys and Girls Clubs of Greater Knoxville. “As a nonprofit, the last thing I want is for some scam to occur, because it’s a reflection on those of us who are good when others do something bad.”
Both Lee and Richard Shadyac, CEO of St. Jude’s fund-raising branch ALSAC Communications, say the new stipulations won’t have any impact on their organizations since they develop and put on their entire event in-house.
“We oversee the building of our homes, do the actual drawing, make partnerships with the builder and TV stations (that promote the event),” Shadyac said of the hospital’s “dream house” promotion, which has raised as much as $1.2 million on a single home. “We oversee every aspect of it.”
Charity games were included in the amendment to the Tennessee Constitution approved by voters in November 2002 that removed the prohibition against lotteries. That created the state lottery, and charity games were envisioned as next in line. The only charities that can hold these games are organized under section 501(c)3 of the Internal Revenue Service code.
To hold an event beginning July 1 of this year, charities must turn in their applications by April 6 — a deadline House sponsor Harry Tindell describes as “tight” but manageable.
“We’ve known from the beginning we’re on a tight deadline, and the organizations that have interest in this have been watching the process,” said Tindell, D-Knoxville. “They’ll have to move quickly, but I believe they’ll be able to do it.”
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On the Net:
Boys and Girls Clubs of Greater Knoxville: www.bgck.org
St. Jude Hospital: www.stjude.org