Pub Charity - time for an overhaul?
In 1987 the Hotel Association of New Zealand established a charitable trust known as Pub Charity Inc. Its purpose, to distribute profits from gaming machines in hotels and clubs to worthy charities. Over the years it has donated millions of dollars to worthy causes, and occasionally, some considered less worthy.
In recent years its donations have exceeded $31million annually, and on occasion in excess of $40million.
From its gross income certain deductions are made, notably:
- GST 11%
- Gaming Duty 20%
- Problem Gambling Levy 1%
- Operational Costs 35%,
...leaving 33% available for charities. Operational costs are subject to certain limits imposed by Sec 116 of The Gambling Act (2003), to ensure operators (hotels) do not milk the system. Nevertheless these conditions have been abused by certain hoteliers, and in some cases prosecutions have followed.
The main beneficiaries of surplus profits seem to be sporting clubs, with health, community groups, services (fire brigades, ambulances etc.) and youth groups receiving donations. Funds are distributed in the area in which they are acquired, which makes it difficult for organizations in smaller or country centres, no matter how worthy, to qualify. Consequently cities such as Auckland and Christchurch, which have many hotels with many gaming machines do very nicely thank you.
Bowling clubs in particular seem to do particularly well, and although funds applied for must be used for club facilities and such like, and not for running expenses, there are ways clubs can meet certain expenses.
A case in point seems to be in the provision of club jackets and trousers for bowling club members, and this does not appear to be within Pub Charity’s guidelines. After all, most bowling clubs are comprised largely of gentlemen and ladies of middle–age to elderly status, and usually of sufficient means to provide their own clothing. And Pub Charity does not need bowlers to wander around with advertising on their jackets, extolling the virtues of Pub Charity.
Further, however, the uniforms are not actually donated to the bowling clubs, and as such do not appear in their balance sheets, but remain the property of Pub Charity. Many thousands of dollars have been spent on these uniforms, and it is a bit like Pandora’s Box, once opened lots of other clubs would like a dip.
A perusal of applications or donations declined indicates many worthy but struggling organizations do not qualify, no doubt for a variety of reasons, but in many cases because there are few hotel operators in their district. Surely however, these small clubs, many of which cater for children and youths who need encouraging in sport or other recreational activities, should receive some preference as opposed to uniforms for bowlers. Perhaps a change to Pub Charity’s Constitution is needed.
