Changes in the April 2025 CGPH
In March 2025 the province had a media release related to changes made to the Charitable Gaming Policies Handbook. These amendments can be found in the April 2025 version of the Policies Handbook on the AGLC website. There is also a quick reference guide to help discern what funds require a special application.
The Alberta government, through a March 2025 press release, announced changes aimed at providing charities with “less red tape, more freedoms” and “more flexibility on how they can spend the money they earn from licensed gaming activities.” These changes include:
- Increased thresholds for retaining proceeds without AGLC approval (up to $50,000 from $10,000).
- Permission to use $100,000 of gaming proceeds for community events without AGLC approval.
- An increase in the limit for administrative expenses to 30% from 20%.
- Elimination of approvals for all travel.
- An increase in the limit for facility renovations and leasehold improvements without approval to $100,000 from $50,000. These changes suggest a move towards greater autonomy for charities in managing gaming proceeds.
Do these changes go far enough? Let your ASBPC representative know.
ASB Resolution 12-25
In January 2025, the ASBs passed a resolution asking that Service Alberta and Red Tape Reduction and the Alberta Gaming, Liquor and Cannabis Commission to amend the Charitable Gaming Policies Handbook so rural non profit organizations are allowed to build reserves and generate revenues once again without affecting the ability to use the gaming proceeds AND that they suspend any audits until stakeholder engagements are completed and the amendments to the Charitable Gaming Policies Handbook are adopted.
The Concern:
Alberta’s Agricultural Service Boards are concerned with the restrictions placed on rural non-profits ability to build reserves and generate revenue in the 2022 version of the Charitable Gaming Policies Handbook (CGPH).
While it is agreed that AGLC funds should not be used to create huge reserves, but should be used for year to year expenses, rural Agricultural Societies frequently use AGLC funds to keep key community facilities afloat and typically struggle to have a tax base big enough to maintain or improve facilities. For many years now rural not for profits like the Agricultural Societies have been encouraged to find alternate income streams and put funds away for facility maintenance and equipment replacement, the changes in 2022 AGLC handbook seemed to work against these efforts.
The 2022 CGPH introduced significant changes, particularly in Section 4.4, concerning the use of proceeds for revenue-generating programs. The 2020 handbook allowed gaming funds to support a group’s overall objectives, programs, and services, implying a broader use. The 2022 update, however, explicitly states that expenses for charitable programs that generate revenue must be managed on a cost-recovery basis, meaning program revenue must be used first to cover program expenses. It also strictly forbids the use of gaming proceeds for the purchase of any equipment, supplies, or services intended to generate profit. Furthermore, gaming proceeds can only be used to cover a shortfall if program revenues are insufficient, which was not explicitly stated in the 2020 version, implying a shift away from using gaming proceeds to build reserves.
Under the 2022 policies (Section 4.4.11), gaming proceeds cannot be used for:
- – Fundraising activities.
- – The purchase of any equipment, supplies, or services used in any activity or operation intended to generate profit.
- – Members’ self-interest or individual/personal benefit.
- – The social, recreational, hobby, commercial, or professional interests of its members or others.
- – Expenses not specifically accommodated in the use of proceeds policies.
According to the 2022 CGPH, expenses for charitable programs that generate or receive revenue (e.g., admission fees, registration fees, donations, grants, advertising revenue, facility rental revenue) must be managed on a cost-recovery basis. This means that program revenue must be used to pay for program expenses first. Gaming proceeds may only be used to cover a shortfall for approved expenses if the program revenues are not sufficient.
Gaming proceeds must only be spent on AGLC-approved charitable purposes consistent with the group’s eligibility for a gaming licence and essential to the delivery of its charitable objectives, programs, and services. They must be spent reasonably and cost-effectively. Payments for approved purposes must be made directly from the gaming account to the vendor, fully supported by receipts and other documents, and authorized by two current members of the group’s volunteer elected executive. Gaming proceeds should remain in the gaming account until spent, though they can be deposited into separate CDIC-insured accounts or used to purchase Guaranteed Investment Certificates, with all earned income considered gaming proceeds.
Additional information:
- In 2023-24, charitable organizations in Alberta earned over $409 million in proceeds through charitable gaming events.
- Charities earned $276.9 million from casino events.
- Alberta is unique in that it is the only province that licenses charities to conduct and manage casino events, allowing eligible charitable and religious groups to directly benefit from the proceeds (revenue less expenses) of various gaming activities such as casinos, bingo, pull-tickets, and raffles.
- Charity Quick Reference Guide – April 2025 AGLC
Discover more from Agricultural Service Boards
Subscribe to get the latest posts sent to your email.
