Detailed Lottery Licence Information

Eligibility

The licensing authority will review all relevant documentation to determine eligibility for lottery licenses. These decisions are based on what is considered charitable in law, including the Criminal Code of Canada, Order-in-Council 2688/93 as amended, the policies issued by the Registrar of Alcohol and Gaming and Town Policy. The objects and purposes of the group and purpose for which group is raising funds must meet the criteria.

The courts have determined that the term charitable refers to organizations which provide programs for:

• The relief of poverty
• The advancement of education
• The advancement of religion
• Other charitable purposes beneficial to the community

The organization must be a charitable or religious organization that has a demonstrated charitable or religious mandate, or an eligible not-for-profit organization whose purposes include charitable or religious objects which provide programs for:

The relief of poverty including:

• the sick and dying;
• disabled persons;
• the homeless;
• victims of crime;
• rehabilitating young offenders and parolees;
• funds may be provided to individuals or families where the relief is a short term or one-time payment intended to relived an exceptional or unusual condition or circumstance. (e.g. helping a family whose house has burnt down)

The advancement of education including public programs which:

1. are geared to scholastic and vocational training for individuals and lead to a recognized diploma or certificate;
2. advance a recognized field of knowledge which leads to an accredited degree, diploma or certificate, and
3. do not include professional development.

Examples of organization that could be eligible under this category:

• elementary and secondary public and Roman Catholic separate schools;
• accredited colleges and universities;
• private schools registered with Revenue Canada as a charitable organization;
• parent/teacher associations or other groups which are non-profit entities and which support one of the above types of institutions;
• scholarship or bursary funds registered with Revenue Canada as a charitable organization.

The advancement of religion:

Programs that assist in the delivery of religious services and programs to the community including activities that advance religion including:

• organizing and providing religious instruction, and performing pastoral and missionary work;
• establishing and maintaining buildings for worship and other religious use.

Any purpose beneficial to the community:

The organization must demonstrate that it is operated for a not-for-profit basis, its purposes include charitable or religious objects, its services are offered to a significant portion of the public and the proposed use of the proceeds are consistent with its mandate.

Eligible organizations are those with mandates in:

• Culture and arts
• Health and welfare
• Physical education
• Community support
• Youth sports where the majority of the players are under 18
• Service to the community (service clubs)

Each application is unique. Determinations of eligibility will depend on the specific organization.

The following pre-requisites are mandatory to be considered eligible for a lottery license:

• Organizations must have been in existence for at least one (1) year.
• The organization must have a place of business in Ontario and use proceeds for objects or purposes that benefit Ontario residents.
• Lottery proceeds can’t be used to start up a charitable or religious organization.

Evaluation process

When an organization applies for a lottery license, it must provide the following documents or information so its eligibility can be reviewed:

• Incorporation papers (Letters Patent)
• Constitution and Bylaws (signed copy)
• Notification of Charitable Registration (Canada Customs and Revenue Agency), if applicable
• Most recent Registered Charity Information Return & Public Information Return, as submitted to Canada Customs and Revenue Agency, if applicable
• Financial statement from previous year (audited, where applicable)
• Detailed outline of all programs/services currently provided and specific costs incurred in their delivery
• Current operating budget
• Current listing of the Board of Directors
• Any other information that will assist in determining the charitable nature of the objects and purposes. This could include an annual report, correspondence relating to its charitable number for income-tax purposes, confirmation that it meets the reporting requirements of the Charities Accounting Act.
• Proposed use of proceeds, which must be consistent with the primary objects and purposes of the organization and of a charitable nature consistent with at least one of the four classifications of charitable purposes.

Types of organization which cannot be considered charitable include:

• social clubs
• professional associations, unions, employee groups
• elected representative groups including municipal, regional, provincial and Federal governments
• government ministries, agents or bodies
• political lobby groups
• political parties
• adult hobby groups
• private sports clubs (e.g. golf/curling)
• adult sports teams

If approved for a lottery license you must obtain a lottery trust account with a minimum of two (2) signing officers, who must be bona fide members of the licensee, to administer the account and write cheques on behalf of the licensee. The signing officers shall ensure cheques are written only for the payment of the expenses incurred in the conduct of the lottery, the payment of prizes and the donation of net proceeds for the charitable purposes approved on the application for license.

The municipality may also attach terms and conditions in addition to those established by the province, provided that they do not conflict with the provincial Terms and Conditions or policies. For more information call the Clerk's office at 905-895-5193 or e-mail information@newmarket.ca.