This chapter outlines the policies and procedures a licensing official must follow to determine:
- whether an organization is eligible to receive a lottery licence
- whether an organization’s proposed use of lottery proceeds is eligible.
To be eligible to receive a lottery licence, an organization must first have charitable objects and purposes that fall within one of the four classifications of charitability:
- the relief of poverty
- the advancement of education
- the advancement of religion
- other charitable purposes beneficial to the community, not falling under (a), (b) or (c).
Determining an organization’s eligibility for lottery licensing is a complex process. The guidelines set out in this chapter cannot be considered independently of each other; a licensing official must consider all circumstances to determine which of the organization’s objects or purposes and activities fall within one of the four charitable classifications. It is not sufficient to look at an organization’s purposes to decide whether it qualifies as charitable: it is also necessary to look at the organization’s activities.
A licensing official may reference decisions made by the courts, the Canada Revenue Agency and Office of the Ontario Public Guardian and Trustee as a guide to eligibility decisions. However, registration under the federal Income Tax Act as a charitable organization does not confer automatic lottery licensing privileges. Similarly, approval of letters patent of incorporation by the Office of the Ontario Public Guardian and Trustee does not confer automatic lottery licensing privileges. Licensing officials must make eligibility decisions on a case-by-case basis, by considering the specific circumstances of each organization.
Licensing officials must determine the eligible uses of lottery proceeds for each organization by examining the charitable classification of the organization’s objects or purposes and activities. For example, an organization that has not demonstrated that it has an object that falls within the “relief of poverty” classification cannot use lottery proceeds to operate a food bank.
Some organizations have objects or purposes and activities that fall within more than one of the four charitable classifications. In this case, eligible uses of lottery proceeds may also fall within more than one of the four classifications.
This chapter is provided as guidance. It is not intended to provide definitive statements with regard to any organization that may apply for a lottery licence. It provides details regarding:
- the process that must be followed
- guidelines for making eligibility decisions
- some examples of organizations and uses of proceeds that may be eligible.
The examples are not exhaustive. They are provided to describe the principles a licensing official must use to determine the eligibility of an organization’s objects or purposes and activities.
Organizations must be continuously reviewed and reassessed to ensure continued eligibility. The examples used in this chapter reflect the current interpretation of what is eligible. It is the duty of licensing authorities to remain current.