Alberta Charities Gain Flexibility in Gambling Fund Allocation

Alberta charities gain more flexibility under new gaming rules, making it easier to fund community projects.

Alberta is implementing revised gaming policies to allow nonprofit organizations more financial flexibility when managing casino events, raffles, and bingos. Effective April 1st, Alberta Gaming, Liquor and Cannabis (AGLC) will adopt a new framework granting charity groups more autonomy to use gaming proceeds for capital projects and operational needs without approval. These changes only allow the use of funds for public benefit purposes like facility acquisition and renovation projects.

Service and Red Tape Reduction Minister Dale Nally confirmed that these reforms eliminate 60% of administrative requirements, streamlining the processes for thousands of charities participating in gaming activities annually. Organizations must still focus gambling revenues on their core missions while modernizing the province’s gaming ecosystem with these changes.

Revitalizing Community Impact

Alberta’s nonprofit organizations are recognized as essential pillars of local communities. Minister Nally emphasized that revised spending guidelines will “replace bureaucratic hurdles with operational trust,” allowing groups to spend resources reviving critical community programs while remaining accountable.

A significant facility-related change is the simplified renovation approvals. Organizations can allocate up to $100,000 annually for eligible building upgrades or rental space improvements without the AGLC’s go-ahead. They’ll only be required to submit detailed project blueprints to the authority at least one month before breaking ground.

Large-scale project oversight will remain, with expenditures surpassing the $100,000 limit subject to regulatory review. This phased framework will allow charities to optimize services for Albertans while remaining aligned with public benefit mandates.

Strategic Fiscal Empowerment

Alberta’s charity organizations can now accrue annual reserves of up to $100,000 from gambling proceeds, capped at a maximum of $500,000, specifically for future facility acquisition and construction projects. These reserves must be used to benefit the community within four years of the maximum threshold being achieved.

Facilities funded through gaming proceeds require AGLC approval for refinancing or sale transactions. Also, groups selling such properties must reinvest a percentage equivalent to the original gambling revenue contribution into their charitable programs. The safeguards align capital assets with mission-driven priorities, preventing financial windfalls from diverting resources from public-benefiting objectives. They also ensure nonprofits maintain transparency in resource allocation as they scale operations.

Eligibility Standards for Charities

Alberta’s charitable groups are mandated to prioritize the government-allocated capital grants for facility developments before using gambling proceeds to ensure that taxpayer resources are fully utilized. To qualify as community spaces worthy of these benefits, facilities must meet several benchmarks:

• Legal ownership or control by a registered charitable organization
• Function as a venue for running the entity’s mission-aligned programs
• Remain accessible to the public at least 50% of the time
• Have a physical address in Alberta

AGLC CEO Kandace Machado highlights the systemic impact of these guidelines: “Alberta’s unique charitable gaming model supports over 23,000 charities in their work every year. The added flexibility in how charitable groups can use their earnings will help them continue to make a real difference for Albertans and communities throughout our province.”