Guam’s bingo games are a little more complicated than they used to be, since the Department of Revenue and Taxation decided to crack down on non-profit organizations. Accordingly, non-profits that don’t report their earnings, even if they are under $25,000, will risk their non-profit status.

Non-profits need to report results from weekly bingo games, as well as account for where the profits go. In June 2004, the Guam Shrine’s Club lost its fundraising permit after Rev and Tax, as the department is called in Guam, determined that only 50% of the Bingo Bunny proceeds had gone to the club. Another club, the Malesso Choir Association, which had one of the biggest bingo games on the island of Guam, lost its tax exemption after money brought in by their bingo games was inadequately accounted for.

While it’s obvious that non-profits need to report on their regular bingo games, what’s less obvious is the fact that they’ll have to account for one-time events, such as church dinners or walk-a-thons. For one-time events, there is a special form called a ‘specific event’ application.

Rev and Tax will be sending out letters to any organizations that have not correctly filed, and any organization which fails to file after receiving warning letters, will lose its non-profit status, meaning that donors will no longer receive a tax benefit from donating to the organization. Such donors may even be fined for back taxes if the charity they donated to subsequently lost its non-profit status in the same year.

Rev and Tax realizes that most of the organizations that have failed to file are honest, and have made honest errors. At this point, they are only serving reminders, but in the near future, they will begin revoking licenses.