Charitable Calcutta FAQ
Who can conduct a Calcutta auction?
The Manitoba Gaming Control Commission (MGCC) may license charitable and religious organizations to conduct a Calcutta auction within the Province of Manitoba in accordance with Section 207 (1) (b) of the Criminal Code ( Canada). If your organization has never been licensed by the MGCC, you will be required to submit background documentation on your organization to determine eligibility.
How long does it take to obtain a Calcutta auction licence?
Organizations must allow 4-6 weeks for processing of a complete and accurate package. Applications that are complete (e.g., all information is provided, all required documents are included, signatures, names and addresses are completed) usually are processed more quickly; an incomplete application could result in a longer processing time. Calcutta auctions can not be advertised prior to a licence being issued.
What is the cost of a Calcutta auction licence?
Licence fees are based on anticipated revenue. For Calcutta auctions with anticipated revenue of $5,000 or less there is no licence fee. For Calcutta auctions with anticipated revenue over $5,000, organizations will be required to submit a licence fee of 1.5% of the actual gross revenue. Fees are due with your event and financial reports. Reporting requirements are set by the MGCC at the time of your approval.
Where can we get an application for a Calcutta auction?
A Calcutta Auction Application is available from our website or by calling our office at 954-9400 or toll free at 1-800-782-0363. Remember to print, read and ensure you understand the Calcutta Auction Terms and Conditions as these will be the terms and conditions which your organization will need to comply with.
What do we need to submit with our application?
In order to determine an organization’s eligibility for a licence, first time applicants and organizations not licensed in over three years, must provide as many of the following documents as possible with their application: charter, constitution and by-laws, articles of incorporation (and most recent corporate annual return), minutes of most recent annual general meeting, membership list, most recent financial statement, and bank statements.
Our organization is very small and we do not have the background documentation you are requesting. Can we still obtain a licence?
Yes, if your organization is a charitable or religious organization. We recognize that many of the smaller clubs are not organized to this extent and may not possess formal documentation. In such cases, minutes from meetings, letters of reference from principals, councilors, priests, or mayors may be acceptable. These references should state:
- that the group is in fact a bonafide organization
- its aims and objectives
- the reasons/need for the raising of funds
What if we don’t have a president, vice-president, secretary, treasurer?
If the titles of your executive members are not consistent with the titles we provide on the application, please indicate the actual organization title on your application. Organizations must adapt their titles to those on the form in a “best fit” manner as necessary, (e.g. Executive Director, Grand Knight, Head Coach, Manager, Principal, or Minister may replace President). The executive members you list on the application must be the actual elected executive of the organization itself and not members of a sub-committee who have been given responsibility for the lottery.
Are there any limitations to advertising our Calcutta auction?
Once a licence has been approved, a Calcutta auction can only be advertised in Manitoba. All advertisements must contain the name of the licensed organization and the licence number. Advertisements must adhere to federal, provincial and community advertising laws and standards. If you are advertising on the internet, certain restrictions apply.
How can the funds generated from our Calcutta auction be used?
Eligible organizations must use lottery proceeds generated from lottery activities for the advancement of education, religion, health, the relief of poverty, or must benefit the community through the promotion of sport, recreation, culture, or any other area considered appropriate by the MGCC. This information is to be as detailed as possible. Organizations who find it difficult to indicate where the profits are to be directed, should refer to their last financial statement or their proposed budget. Organizations should then choose area(s) they would like to subsidize with lottery funds.
Is there a limit to the prize(s) being offered?
Yes, total prizes awarded shall be a minimum of eighty-four and one-half percent (84.5%) of the gross receipts of the Calcutta auction.
We received forms with our Calcutta auction licence package. What do we do with these forms?
All records relating to the conduct and operation of the Calcutta auction, must be kept by the licensee for at least three (3) years. Organizations with anticipated revenue over $5000 must submit the financial forms. Organizations with anticipated revenue of $5000 or less must simply keep records of the licensed event and are not required to submit the forms. These records may be requested during an inspection, audit or with a subsequent application.
The foregoing are the most commonly asked questions. If you have questions or concerns that are not answered here, please contact the MGCC directly: 954-9400, 1-800-782-0363 or by e-mail at firstname.lastname@example.org