The Department of Internal Affairs

The Department of Internal Affairs

Te Tari Taiwhenua

Building a safe, prosperous and respected nation

 

Services › Casino and Non-Casino Gaming › Tips for Making Authorised Purpose Grants


Make sure the purpose is shown on your licence

When a licence is applied for, a society has to specify what authorised purposes it intends to raise money for. These authorised purposes are shown on the face of the gaming machine licence and on each venue approval. A society cannot make grants to any purpose which is not included in the authorised purpose statement on the licence.



Make grants to groups

To rule out personal gain, grants should be made to groups rather than individuals. For example, a grant to an amateur soccer club rather than an individual soccer player.


Make sure you know beforehand what the money will be spent on

A society should not grant money to a group to spend as it wishes, even if the group is nominally "charitable". Always make sure it is known specifically what the grant is for. A society must be able to demonstrate that the grant was intended for an authorised purpose.


Grants must be at "arm's length"

There should be no relationship between a society or venue and a grant recipient. Grants must not involve a conflict of interest or an element of commercial gain for a society or venue operator. Grants from a venue cannot go to people who are important as patrons of the venue, for example; the pub darts team or a ten pin bowling team which normally patronises a ten pin bowling gaming venue.


Grants must be unconditional - no deals are allowed

No deals or "backhanders" should be attached to a grant. Grants cannot be conditional on recipients drinking at a particular venue. Similarly, recipients can't "buy" rights to gaming machine funds.


Grants must not be retrospective

A grant cannot be made to reimburse money already spent by the grant applicant.


Grants must not be promissory

A grant can only be made from net proceeds that are available and not on the understanding that grants will be approved in the future.


Grants to groups based outside the local area

A society may have internal policies that dictate whether grants are restricted to organisations or activities within the local community or region. However, there is no law or regulation stipulating that grants have to be made locally.


The funds belong to the society

Venue operators do not "make grants". They are agents of the society and the gaming machine funds belong to the society. The decision on the grant must be made by the society. The venue operator is not permitted to have any input into the allocation of funds from machines and must not "promise" funds to any group.

Remember a grant does not have to be made. If there is any doubt about whether a grant application is for an authorised purpose, it is better decline the application than to find out later that gaming funds have been misused.

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